Aided by strong refining and petrochemicals margins, oil-to-telecom conglomerate Reliance Industries on Thursday reported a 28 per cent rise to hit its highest quarterly consolidated net profit of Rs 9,108 crore during the June 2017 quarter as against Rs 7,113 crore in the same period last fiscal. The net profit (excluding exceptional items) increased by 12.8 per cent to Rs 8,021 crore.
Exceptional items during the quarter was Rs 1,087 crore ($168 million) representing profit from divestment of stake in Gulf Africa Petroleum Corporation (GAPCO). The standalone net profit for the latest June quarter was Rs 8,196 crore, a rise of 8.6 per cent. RIL said strong refining and petrochemicals margin environment contributed to higher operating profits for the quarter. Gross refining margins recorded nine-year-high of $11.9 per barrel whereas petrochemicals EBIT (earnings before interest and depreciation) margin were at all-time high of 15.8 per cent. Cost of raw materials increased by 17.7 per cent to Rs 44,117 crore on YoY basis primarily on account of increase in crude prices and higher volume of crude processed.
The company achieved a revenue of Rs 90,537 crore, an increase of 26.7 per cent as compared to Rs 71,451 crore in the corresponding period of the previous year. “The increase in revenue is primarily on account of increase in prices and volumes of refining and petrochemical products partially offset by lower prices and volumes from E&P business. Revenue was also boosted by robust growth in retail business which recorded a 73.6 per cent increase in revenue to Rs 11,571 crore,” it said. RIL which has a market capitalisation of Rs 4,97,000 crore closed 0.31 per cent down at Rs 1,528.70 on the BSE on Thursday.
RIL CMD Mukesh Ambani said: “Our industry leading portfolio of assets in the refining and petrochemicals business contributed to considerable improvement in our earnings for the quarter. Retail business also witnessed accelerated growth momentum with YoY revenue growth of 74 per cent. Jio has revolutionised the Indian telecom and data consumption landscape. This digital services business has been built to address the entire value chain across the digital services domain with smart applications to make life simple, beautiful and secure.”
“Over the last four decades, Reliance has continued to grow and evolve by creating value through building competitive global scale businesses and delivering increasing shareholder returns. Over the past 3-4 years, we made significant investments in new plants, thus creating organic growth platforms for our energy and materials businesses,” Ambani said. According to Ambani, full commissioning of new PX facility at Jamnagar during the quarter will strengthen the integration within our polyester chain. Ramp-up of ethane import project has helped in diversifying feedstock sources and mitigating risks for our existing crackers at Dahej and Hazira.
Reliance Retail, the retail arm of Reliance Industries, has reported 65.8 per cent rise in pre-tax profit at Rs 398 crore for the first quarter ended on June 2017. The company had reported a PBDIT of Rs 240 crore in the same period last fiscal. The turnover in the quarter under review jumped by 73.6 per cent to Rs 11,571 crore against Rs 6,666 crore in the year-ago period.
On telecom business, RIL said Jio has become the fastest growing technology company in the world with more than 100 million subscribers in just 170 days. “Jio’s innovative market approach backed by superior HD quality VoLTE voice and data strong network has unlocked latent demand for data and growth ahead of all industry estimates,” it said.