Reliance Industries posted a record net income of Rs.6,381 crore in the March quarter, driven by robust refining margins, reestablishing itself as the country's most profitable company after having fallen behind Tata Consultancy Services in the preceding three-month period.
Billionaire Mukesh Ambani-led Reliance Industries clocked an 8.5% year-on-year rise in net profit, exceeding expectations, as sales dropped 33.3% to Rs.70,863 crore.
Sales for the year dropped 13% to Rs.3,88,494 crore while net profit rose 4.8% to Rs.23,566 crore.
Crude oil prices have fallen almost 50% since June and weak refining operations had weighed on RIL's performance. But in the January-March period, RIL's core refining and marketing business emerged as the key growth driver despite a planned shutdown during this period.
The gross refining margin (GRM), the differential between the sales proceeds of refined products and the cost of crude oil required to produce them, rose to $10.1 a barrel from $9.3 a year ago and $7.3 in the preceding quarter.Having estimated GRM at about $9.5 per barrel for the quarter, analysts said that the company could improve margins on the back of better product spreads mainly in petrol, LPG, diesel and naphtha.
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