Consumption of raw materials increased by 10% from Rs 18,152 crore to Rs 19,999 crore (US$ 4.91 billion) primarily on account of higher crude prices. Employee cost increased by 17% from Rs 318 crore to Rs 371 crore (US$ 91 million).
This increase was mainly on account of performance linked incentives and increments. Other expenditure decreased by 20% from Rs 2,442 crore to Rs 1,953 crore (US$ 480 million), mainly due to lower incidence of sales tax on account of higher export of refinery products.
It includes conversion costs, selling expenses, sales tax, repairs and maintenance, excise duty on stock and establishment expenses. Operating Profit before other income increased by 22% from Rs. 4,237 crore to Rs. 5,177crore (US$ 1.27 billion). Net operating margin for the quarter was 18.5% as compared to 17.3% in the corresponding period of the previous year.
Other income was higher at Rs. 105 crore (US$ 26 million) against Rs. 44 crore primarily on account of increase in interest income on higher surplus funds. Interest costs were higher by 8% at Rs. 288 crore (US$ 71 million) on account of increased borrowings.
During the quarter, Rs. 163 crore of interest was capitalized, as against Rs 149 crore in the corresponding period of the previous year. Interest cost includes Rs. 23 crore on account of exchange rate difference against Rs. 136 crore in the corresponding period of the previous year. Gross interest cover was 9.6 compared to 8.1 for the corresponding period of the previous year.
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Reliance Industries Limited
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