RIL petrochemicals' revenue grows 47.6% in Q3 FY18

Petrochemicals segment EBIT was at a record level of Rs 5,753 crore ($901 million) supported by strong volume growth, higher margins for polypropylene and downstream polyester products.

In its polyester chain segment, RIL’s margins further increased on quarter-on-quarter basis during the quarter ending December 31, 2017, and were above 5 year average. PX prices were up 8 per cent q-o-q, tracking higher crude prices. However, PX-Naphtha delta was lower ($312/MT, down 9 per cent q-o-q) as delay in start-ups of new PTA capacities impacted PX demand.

“PTA markets remained healthy amidst consistent downstream demand and tight supplies. Planned turnarounds at major capacities and unexpected delay in restart of idled units aided fundamentals. Consequently, PTA prices rose 6 per cent Q-o-Q,” RIL said in a press release.

MEG prices firmed due to robust demand and tight supplies and speculative sentiments, while polyester demand remained unchanged as producers maintained high plant utilisation rates amidst low inventory. Operating rates of polyester fibre and yarn plants in China improved and were in range of 89-95 per cent.

Polyester filament yarn (PFY) prices rose 5 per cent q-o-q and delta firmed up by 6 per cent to $313/MT, during October-December 2017.

During Q3 FY18, domestic polyester demand gradually stabilised post implementation of GST. Government of India’s initiative to reduce GST rate for PFY and spun yarn to 12 per cent bolstered the market sentiments complimenting the demand growth. Filament markets geared up their operations amidst improved demand for winter wear (demand up by 7 per cent q-o-q).

MEG capacity at Jamnagar achieved design throughput. Fibre intermediate production during Q3 FY18 increased by 35 per cent year-on-year to 2.3 MMT while polyester production rose 5 per cent y-o-y to 0.62 MMT.

Commenting on the results, Mukesh Ambani, chairman and managing director, RIL said, “I am happy to share record-setting consolidated quarterly earnings to mark the 40th anniversary of Reliance’s listing in January 1978. Fittingly, this quarter marks the culmination of our petrochemical expansion projects.” (RKS)

Fibre2Fashion News Desk – India