Reliance Industries Ltd recorded its highest earnings the refining business in the first quarter of FY17 on the back of a strong product demand and strong margins. 

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Reliance Industries made a whopping Rs 6,593 crore from refining in the April-June period, higher than the Rs 5,235 crore it made from the business last year, a 25.9% increase. 

Earnings made from refining were followed by the petrochemicals business, which improved by 13.5% at Rs 2,806 crore up from Rs 2,329 crore in the corresponding period of last year.

“Strong operating performance from refining and petrochemicals businesses coupled with a favourable exchange rate movement enhanced the operating profit,” the company said in a statement.

The share of Refining EBIT (Earnings Before Interest, Tax) increased from 64.4% in the previous year to 70.4% in FY17.

“Robust performance from downstream businesses continue to boost overall EBIT segment,” the company stated.

However, the regional refining margins trended downwards due to the 26% on year decline in Brent crude oil prices. In the quarter under consideration, margins averaged at $45.6 per barrel compared to the $61.9 per barrel in the corresponding period of the previous year. 

The average crude output of the company – 16 million metric tonnes (MMT), was 3% lower on a quarter-on-quarter basis but despite that, the company said that the sales volume was maintained.

“The impact of lower prices was partially offset by higher volumes in refining and petrochemicals segments,” the company said in a statement.

Reliance Industries' Chairman and Managing Director Mukesh Ambani, said, “Our refining business delivered another record performance and achieved industry leading GRM.

"Our petrochemicals business has a wide product portfolio, superior feedstock linkages and serves high-growth end-markets in India. As a result, we achieved yet another quarter of margin expansion in petrochemicals business and delivered EBIT growth of more than 20.5% Y-o-Y.”

The overall segment EBIT, recorded a 15.2% increase in Year-on-Year earnings to Rs 9,362 crore.