Reliance Industries Ltd (RIL), controlled by Mukesh Ambani, India’s richest man, reported better-than-expected results in the second quarter. RIL’s net profit in the quarter ended September 30, 2013, rose 1.5 per cent to Rs. 5,490 crore from a year earlier, slightly better than estimates of Rs. 5,440 crore.

RIL’s revenue in the second quarter also beat analyst expectations. RIL said its second quarter rose 14.2 per cent to Rs. 106,523 crore, against expectations of Rs. 102,320 crore.

Higher refining and petrochemicals sales and a weaker rupee helped RIL cushion the impact of slimmer margins in its oil refining business.

Reliance Industries operates the world’s biggest refining complex and gets nearly 80 per cent of its revenue from refining. RIL’s gross refining margins (GRM) were a tad lower than expectations. During the second quarter, RIL’s gross refining margin was at $ 7.7/barrel, as compared to estimates of $7.8/barrel. GRM is the difference between total value of petroleum products and price of crude. Higher the GRMs, higher the profit yields.

For the six-month of April to September, RIL’s net profit increased by 9.4 percent to Rs. 10,842 crore from a year earlier level while revenue increased by 4.7 percent to Rs. 197,112 crore.

Commenting on the results, Mukesh Ambani, chairman and managing director, Reliance Industries Limited, said, “RIL’s first half performance reflects the resilience of our business model in a period of volatility and uncertainty. Retail business continues to break new ground, growing 41 per cent in 1H FY14.”

Its oil and gas exploration business continued to be dragged down by lower gas production from KG-D6 basin. During the second quarter, RIL saw a nearly 50 per cent drop in its gas production from KG-D6 field, which it attributed to geological complexity and natural decline in the fields. In terms of revenue, RIL’s oil and gas exploration business saw a 35 per cent fall in revenues to Rs. 1,464 crore from a year earlier.