Reliance Industries Ltd Q2 consolidated profit rises 12.5 per cent to 8,109 crore 

The company’s revenue rose 23.9 per cent to Rs 1,01,169 crore in the reported quarter as against Rs 81,651 crore in the year-ago period

By: ENS Economic Bureau | Mumbai | Published: October 14, 2017 1:47 am
Reliance Industries Ltd, RIL, Reliance, Reliance Company, Reliance Business, RIL Business, Business News, Latest Business News, Indian Express, Indian Express News The company’s revenue rose 23.9 per cent to Rs 1,01,169 crore in the reported quarter as against Rs 81,651 crore in the year-ago period

Buoyed by higher refining margins, Reliance Industries Ltd (RIL) has posted a 12.5 per cent rise in consolidated net profit to Rs 8,109 crore for the September quarter as against Rs 7,209 crore in the same quarter of last fiscal.

The company’s revenue rose 23.9 per cent to Rs 1,01,169 crore in the reported quarter as against Rs 81,651 crore in the year-ago period. On a standalone basis, RIL’s net profit increased by 7.3 per cent to Rs 8,265 crore during the September quarter while revenue increased by 16.8 per cent to Rs 75,165 crore. RIL’s revenue from the refining and marketing segment increased by 15.3 per cent to Rs 69,766 crore. Earning before interest and tax (EBIT) increased by 10.8 per cent Rs 6,621 crore, aided by higher volumes and strong transportation fuel cracks. Gross refining margins (GRM) for the second quarter of FY18 stood at a nine-year high of $12.0 per barrel as against $10.1 per barrel in the same period of last year. The company’s GRM outperformed Singapore complex margins by $3.7 per barrel.

The increase in revenue is primarily on account of increase in prices and volumes in refining, petrochemical and retail businesses. Further, the consolidated revenues reflect the commencement of commercial operations of RJIL’s Wireless Telecommunication Network during the quarter, RIL said. RIL’s telecom arm, Reliance Jio saw its net losses widening to Rs 270.59 crore in the July-September quarter this fiscal against a net loss of Rs 21.27 crore in the preceding quarter. The total income of Reliance Jio stood at Rs 6,148.73 crore in the quarter under review.

Reliance Retail’s revenue for the September grew by 81.3 per cent to Rs 14,646 crore, up from Rs 8,079 crore in the same period of last year. Profit before depreciation, interest and tax (PBDIT) for the period rose by 68.2 per cent Rs 444 crore, up from Rs 264 crore. RIL shares closed at Rs 876.7, up 0.48 per cent from the previous closing, on the BSE on Friday.

RIL chairman and MD Mukesh D Ambani said: “Our company reported another quarter of robust performance. The results also reflect strong underlying fundamentals of our refining and petrochemicals businesses. Sustained demand growth coupled with supply disruptions further tightened demand supply balances globally during the quarter. The benefits of optimising our business through new projects are beginning to emerge. The structural strength in energy and materials business environment augurs well for our new capacities which are coming on-line this year.”

Reliance Jio’s standalone EBIT was Rs 260 crore and EBIT margin 4.2 per cent. “The world is transforming, turning digital and India is not going to be left behind. India is ready to go digital, move from voice to data and Jio is creating the foundation of data for the next generation business. The rapid uptake of Jio services reflects the latent need of the society. We are confident that Jio will bring significant benefits to the Indian economy and the Indian customers and will take India to a much higher pedestal,” Ambani said.

“The strong financial results of Jio demonstrates the robust business model of Jio and the significant efficiencies that the Company has built through its investment in the latest 4G technology and right business strategy,” he said. Jio’s subscriber base as of September 2017 was 138.6 million.

“The results also reflect strong underlying fundamentals of our refining and petrochemicals businesses. Sustained demand growth coupled with supply disruptions further tightened demand-supply balances globally during the quarter. The benefits of optimising our business through new projects are beginning to emerge. The structural strength in energy and materials business environment augurs well for our new capacities which are coming on-line this year,” he said. “Our retail business has delivered broad based, sustainable and profitable growth through improved operational excellence,” Ambani said. Reliance Retail added 45 stores during Q2 and operates 3,679 stores across 750 cities with an area of over 14.20 million sq ft as on September 30, 2017.

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