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RIL’s net profit slides 21%

Reliance Industries (RIL) on Friday posted its third consecutive drop in quarterly profit on declining natural gas output and reduced earnings from fuel sales, but beat street expectations.

Net profit fell 21 per cent to Rs 4,473 crore, or Rs 13.70 per share, in April-June quarter from Rs 5,661 crore, or Rs 17.30, a year earlier, the company said in a press statement. It, however, beat street expectations as operating profit rose for the first time in three quarters.

‘RIL has improved its earnings profile as profits from operations were higher on a sequential basis on the back of volume growth in the refining business,’ company chairman and managing director Mukesh Ambani said.

‘We have commenced our next phase of capital investments in the refining and petrochemical segments to enhance earnings and value of our core energy businesses, he said.

RIL is investing $12 billion in new projects and is returning cash to its shareholders through the nation’s largest-ever share buyback programme.

The company posted a better-than-expected gross refining margin of $7.6 per barrel in the first quarter ended 30 June. It had earned $10.3 on turning every barrel of crude oil into products in the first quarterof 2011-12 fiscal. Gas production at its flagship KG-D6 field dropped 33.1 per cent to 104.40 billion cubic feet or a little less than 33 million standard cubic meters per day. RIL had produced an average of 49 mmscmd of gas in April-June last year.
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