India's Reliance Industries Profit Falls 23% -- Update
October 20 2016 - 8:34AM
Dow Jones News
By Debiprasad Nayak
MUMBAI--Indian energy-to-telecoms conglomerate Reliance
Industries Ltd. said Thursday its net profit fell 23% last quarter,
hurt by higher expenses and a one-time gain a year earlier.
The company, which operates the world's largest crude oil
refining facility, said consolidated net profit in the three months
ended Sept. 30 fell to 72.06 billion rupees ($1.08 billion), from
93.45 billion rupees a year earlier. Last year's profit was boosted
by a one-time gain of 43.10 billion rupees thanks to the sale of an
associate EFS Midstream LLC.
The latest quarter profit was almost in-line with the 72.20
billion rupees consensus forecast of analysts surveyed by Thomson
Reuters.
Excluding the one-time gain, net profit rose 43% over the last
year, Reliance said in a statement. Chairman Mukesh Ambani said
higher volumes and supportive profit margins in the company's
petrochemical business helped boost revenue.
Revenue rose 9.6% to 816.51 billion rupees.
The company's gross refining margin, or the difference between
what it paid for crude oil and the price it charged for refined
products, fell to $10.1 per barrel last quarter, from $10.6 a
barrel a year earlier.
Reliance has made forays in telecommunications and retail
businesses, spending aggressively to expand its revenue sources and
reduce dependence on the country's heavily-regulated oil and gas
sector.
In September, the company launched its mobile services Reliance
Jio. It added over 16 million subscribers in the first month of
operations, it said in a statement.
Write to Debiprasad Nayak at debi.nayak@wsj.com
(END) Dow Jones Newswires
October 20, 2016 09:19 ET (13:19 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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