RIL Q4 profit in line with estimates, subsidiaries turn profitable

India’s biggest private sector petroleum company Reliance Industries posted results in line with the analyst estimates with a 0.75% year-on-year growth in its net profit for Jan – Mar ’14 quarter to Rs 5631 crore. The estimates ranged between Rs 5550 – 5650 crore.

This will have limited impact on its share price, which will continue to be driven by progress on its expansion programmes, E&P and new businesses.

For the whole year FY14, the company’s consolidated net profit grew 4.7% y-o-y to Rs 22,493 crore, showing its subsidiaries together contributed Rs 509 crore to its profits, as against a net loss last year. RIL’s subsidiaries operate in areas from retail, petrochemicals, overseas E&P, telecom and gas pipelines.

The company posted gross refining margins (GRM) of $9.3 per barrel for the Jan-Mar ’13 quarter, which was significantly higher than the street’s expectation of $8.7 per barrel. The company had posted $10.1 per barrel for year ago period.

The petrochemical segment’s margins stood at 8.6%, same as compared to year ago.

The company’s other income, which has long remained a substantial contributor to its bottomline, for the quarter was down 9.2% y-o-y to Rs 2036 crore.