PETROCHEM

Business Today - - THE BUZZ - - Nevin John

SHIN­ING FOR RIL

WILL THE petro­chem­i­cals busi­ness of Re­liance In­dus­tries ( RIL) top­ple its re­fin­ing busi­ness to be­come the largest earn­ing seg­ment for the com­pany? Petrochem posted a 45.2 per cent jump in earn­ings be­fore in­ter­est and tax ( EBIT) to ` 4,960 crore in the sec­ond quar­ter, while the re­fin­ing busi­ness posted an EBIT of ` 6,621 crore, 10 per cent more than in the year- ago pe­riod. RIL off icials say this will hap­pen soon, pos­si­bly in the fourth quar­ter, as they are com­mis­sion­ing the Re­fin­ery Off - Gas Cracker, which will help in­crease eth­yl­ene ca­pac­ity to 3.6 mil­lion tonnes ( MT) from the cur­rent 1.9MT. The EBIT mar­gin of RIL has dou­bled over the last three years — 17.7 per cent in Q2 FY18 as against 8.9 per cent in Q2 FY15. It’s at the be­gin­ning phase of com­mis­sion­ing new projects — so far, it has com­mis­sioned three trains of paraxy­lene at Jam­na­gar. RIL sources state com­ple­tion of the petrochem projects will double the op­er­at­ing profit from the seg­ment.

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