New Delhi: Reliance Industries on Monday said its net profit rose nearly 17 per cent during the quarter ended June 30 as better refining margin and higher yield on its cash deposits offset fall in gas output from its showpiece KG-D6 fields.

Net profit soared 16.7 per cent to Rs 5,661 crore in April-June quarter this fiscal compared to Rs 4,851 crore in the same period the previous year, RIL said in a statement.

It said natural gas output at its eastern offshore KG-D6 gas fields fell 18 per cent to 156.2 billion cubic feet in the April-June quarter but did not elaborate on the reasons.

Output at KG-D6 has dropped from 61.5 million cubic meters per day achieved in March 2010 due to increased water flow and drop in reservoir pressure at the limited wells in production as the company deterred from drilling more wells.

The production numbers reported by RIL translate into an average output of about 48.6 mmscmd in Q1 as opposed to an about 58 mmscmd average in the same period a year ago.

Also, crude oil output from MA field in the same KG-D6 block also fell 41 per cent to 1.41 million barrels in Q1.

The 16.5 per cent drop in revenues from oil and gas was offset by 45.8 per cent jump in earnings from oil refining and 32.1 per cent increase in revenue from petrochemical business.

RIL, which operates the world's largest refining complex at Jamnagar in Gujarat, said it earned USD 10.3 for turning every barrel of crude oil into fuel as opposed to USD 7.3 per barrel gross refining margin in Q1 of 2010-11 fiscal.

Also contributing was a 49 per cent rise in other income helped by higher yields on its cash balance. RIL had a cash balance of Rs 45,775 crore which yielded Rs 1,078 crore in other income in Q1 as against Rs 722 crore last fiscal.

Agencies