Millennium Post

RIL suffers its fourth drop in quarterly net

Reliance Industries on Monday reported its fourth consecutive drop in quarterly net profit, hurt by weak demand and lower natural gas output, but sequentially its earnings rebounded.

RIL, the nation's largest listed company by market value, said its July-September net profit at Rs 5,376 crore, fell 5.7 per cent from Rs 5,703 crore in the previous year.

The number either met market estimates or were better.

Sequentially net profit was up 20 per cent from Rs 4,473 crore in the first quarter. Also, profits before tax were up 25 per cent on a sequential basis at Rs 6,803 crore.

RIL's sales rose 15 per cent to Rs 90,335 crore.

Its oil and gas business saw revenues drop 36.7 per cent to Rs 2,254 crore on back of a steep drop in oil and gas production from eastern offshore KG-D6 block.RIL said oil production from KG-D6 block dropped 37 per cent to 1.7 million barrels in first half of current fiscal and natural gas by 35.1 per cent to 197 billion cubic feet.

'This reduction was due to reservoir complexity and natural decline.'

It did not give production numbers for second quarter. The margins were better than USD 7.6 in the June quarter.
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