Reliance Industries Q1 net up 6.8% to Rs 10,104 crore on jump in digital, retail revenuehttps://indianexpress.com/article/business/companies/ril-q1-net-up-6-8-to-10104-cr-on-jump-in-digital-retail-revenue-5838616/

Reliance Industries Q1 net up 6.8% to Rs 10,104 crore on jump in digital, retail revenue

RIL’s telecom and digital arm Reliance Jio reported a 45.6 per cent increase in net profit at Rs 891 crore for the June quarter as against Rs 612 crore in the same period of last year.

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Aided by a strong revenue growth in digital and retail businesses, Reliance Industries Ltd (RIL), India’s largest company in terms of market valuation, has reported a 6.8 per cent rise in net profit at Rs 10,104 crore for the June 2019 quarter as against Rs 9,459 crore in the same period of last year. However, the net profit declined by 2.5 per cent from Rs 10,362 in the March 2019 quarter when compared on a sequential quarter-on-quarter basis.

The company achieved a revenue of Rs 172,956 crore, an increase of 22.1 per cent as compared to Rs 141,699 crore in the corresponding period of the previous year. Growth in revenue was led by sharp increase in revenue from digital services and retail business, which recorded an increase of 55 per cent and 48 percent on a year-on-year basis respectively. “Higher refinery throughput on a Y-o-Y basis contributed to the increase in revenue for the refining business,” RIL said.

RIL’s telecom and digital arm Reliance Jio reported a 45.6 per cent increase in net profit at Rs 891 crore for the June quarter as against Rs 612 crore in the same period of last year. Operating revenue shot up by 44 per cent to Rs 11,679 crore from Rs 8,109 crore a year ago.

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RIL chairman and managing director Mukesh D Ambani said: “Our first quarter earnings were strong despite weak global macroeconomic environment and challenging hydrocarbon market conditions. Our downstream businesses delivered resilient performance in an environment of slower demand growth and incremental supplies. The performance reflects the benefits of deep refining and petrochemicals integration, chain economics and feedstock flexibility.”

“The company continues to make major strides in its retail and digital services businesses led by focus on growth markets with offerings in the right product segments and compelling value proposition. We are pleased with the robust growth both in revenues and operating income for Reliance Retail. Our digital services business continues to transform the mobility market in India while scaling newer milestones.”

On the digital business, Ambani said, “Growth in Jio mobility services has continued to surpass all expectations. In less than two years of commercial operations, Jio network carried almost 11 exabytes of data traffic during the recently concluded fiscal quarter. Jio management is focused on giving unmatched digital experience at most affordable price to every citizen of the country, and accordingly expanding the network capacity and coverage to keep pace with demand.”

According to Ambani, Jio has started connecting enterprises with its next-gen connectivity solutions on the back of its extensive fiber network across the country.

In the retail segment, revenue for the June quarter grew by 47.5 per cent to Rs 38,196 crore as against Rs 25,890 crore in the corresponding period of the previous year. EBITDA (earnings before interest, tax, depreciation and amortisation) for the quarter rose by 69.9 per cent to Rs 2,049 crore as against Rs 1,206 crore in the corresponding period of the previous year.