India’s Reliance Industries (RIL) has reported a disappointing 21.2 per cent fall in earnings in the quarter till March 2012.
The figures report by India’s largest private-sector conglomerate is mostly in line with the analyst expectations. The conglomerate’s other income 33 percent compared to the previous quarter and four times than the same quarter in eh previous year. The other income figure stood at Rs 2,295 crore.
The gross refining margin (GRM), which accounts for 76 percent of revenues, were higher than estimates at $7.60 per barrel in the same period. Analysts have expressed concerns over the oil and gas output level of the company.
The net profit for the company stood at Rs 4,230 crore for the January-March quarter. The company is facing a difficult situation in the KG-D6 basin, where the output has fallen significantly. The gas production from Reliance Industries' KG-D6 block have fallen to its lowest level ever to the level of about 28 million standard cubic meters per day after the company had to close down six wells because of water and sand ingress.
Reliance Industries more or less met the analyst expectation of the quarter and the stock prices are not likely to be significantly affected.