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Reliance Industries (RIL) has reported its highest ever quarterly consolidated net profit of Rs 9,516 crore, a 17.4 per cent rise year-on-year, for the July-September period against a profit of Rs 8,109 crore in the year-ago period. Its telecom arm Reliance Jio posted a net profit of Rs 681 crore against a loss of Rs 271 crore in the year-ago period.
On standalone basis, RIL made a net profit of Rs 8,859 crore against Rs 8,265 crore, a rise of 7.2 per cent. Jio made a 11.3 per cent rise in net profit on a sequential basis from Rs 612 crore in the June quarter.
RIL achieved a consolidated revenue of Rs 156,291 crore, an increase of 54.5 per cent as compared to Rs 101,169 crore in the corresponding period of the previous year. RIL’s standalone revenue was up 37.1 per cent at Rs 98,862 crore. The increase in revenue is primarily on account of higher price realizations of petrochemical and refinery products led by 44.5 per cent increase in Brent crude price. “Increased revenues also reflect higher volumes with the commissioning and ramp-up of new petrochemical facilities. Retail business and digital Services business also recorded a sharp 121 per cent and 52 per cent increase in revenue during the quarter compared to the corresponding quarter of the previous year,” the company said.
RIL chairman Mukesh Ambani said: “Our company delivered robust operating and financial results for the quarter despite macro headwinds, with strong growth in earnings on a year-on-year basis. Our integrated refining and petrochemicals business generated strong cash flows in a period of heightened volatility in commodity and currency markets. Our petrochemicals assets contributed record earnings; endorsing benefits of diversified feedstock, integration and superior product portfolio. Use of ethane feedstock at Nagothane cracker from this quarter has further enhanced feedstock optionality.”
Gross refining margin stood at $ 9.5 per barrel, outperforming Singapore complex margins by $ 3.4 per barrel, RIL said. “The financial performance of both retail and Jio reflect the benefits of scale, technology and operational efficiencies. Retail business EBITDA has grown three fold on Y-o-Y basis whereas Reliance Jio EBITDA has grown nearly 2.5 times. Jio has now crossed 250 million subscriber milestone and continues to be the largest mobile data carrier in the world,” Ambani said.
“Our next generation FTTH and enterprise services are now being made available to our customers to further enhance our value proposition to our customers. We are making rapid progress on the growth of our digital platforms, across new commerce, media and entertainment, agriculture, education, healthcare and financial services, which will further enhance the quality of life and productivity of the people of India,” Ambani said.
“Jio has accelerated its pace of subscriber additions further with net addition during the quarter of 37 million (against 28.7 million in the previous quarter), highest in any quarter since the launch—gross adds at 41.7 million and churn of 4.7 million implying the lowest industry churn rate at 0.66 per cent per month,” RIL said.
Reliance Retail revenue for the quarter ended September 2018 was Rs 32,436 crore as against Rs 14,646 crore in the corresponding period of the previous year. Retail profit before depreciation, interest and taxation was Rs 1,392 crore as against Rs 444 crore in the corresponding period of the previous year. “Accelerated store expansion, strong value proposition and focus on customer experience across all consumption baskets has resulted in this robust growth,” RIL said.
