RIL Q1 profit rises 17.9%; Jio posts Rs 612-crore profithttps://indianexpress.com/article/business/reliance-reports-highest-quarterly-profit-at-rs-9459-crore-5279999/

RIL Q1 profit rises 17.9%; Jio posts Rs 612-crore profit

RIL’s subsidiary Reliance Jio posted a 13.8 per cent rise in standalone revenue at Rs 8,109 crore and a net profit of Rs 612 crore for the June 2018 quarter as against Rs 510 crore in the March 2018 quarter.

Reliance reports highest quarterly profit at Rs 9,459 crore
Reliance Jio, the group’s telecom arm, posted a standalone net profit of Rs 612 crore, which was 17 per cent more than the previous quarter as subscriber base swelled to 215 million. (File)

Aided by higher income from consumer businesses, refining and petrochemicals products, Reliance Industries Ltd (RIL) has reported a 17.9 per cent rise in net profit at Rs 9,459 crore for the quarter ended June 2018 as against Rs 8,021 crore (excludes exceptional item) in the corresponding period of the previous year.

RIL’s subsidiary Reliance Jio posted a 13.8 per cent rise in standalone revenue at Rs 8,109 crore and a net profit of Rs 612 crore for the June 2018 quarter as against Rs 510 crore in the March 2018 quarter.

According to RIL, the increase in revenue is primarily on account of higher realisations of refining and petrochemical products led by 49 per cent year-on-year increase in Brent oil price. Increased revenues also reflect higher volumes with start-up and stabilisation of petrochemicals projects. RIL achieved revenue of Rs 1,41,699 crore, an increase of 56.5 per cent as compared to Rs 90,537 crore in the same period of the previous year.

It said robust growth in consumer businesses provided a further boost to revenues. Reliance Retail recorded a sharp 124 per cent increase in revenue to Rs 25,890 crore.

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RIL chairman Mukesh D Ambani said: “We continue to focus on strong delivery through operational excellence in our portfolio of businesses. Financial results of Q1 FY19 underscore the strength of the petrochemicals we have reinforced over the last investment cycle. Our petrochemicals business generated record EBITDA with strong volumes and an upswing in polyester chain margins. Refining business performance remained steady despite the seasonal weakness in cracks.”

Ambani said continuing strength in global demand for oil products and implementation of more stringent environmental norms for marine fuels augurs well for our refining business. “Our consumer businesses continue to scale new highs and now account for nearly 21 per cent of consolidated segment EBITDA. Retail business revenues have more than doubled and EBITDA has trebled on a Y-o-Y basis. Jio added a record number of subscribers, highlighting the compelling technology and value proposition that Jio offers vis-à-vis other networks,” he said.

Ambani said Jio doubled its customer base and most user metrics in the last 12 months. “215 million customers within 22 months of start is a record that no technology company has been able to achieve anywhere in the world. Jio has built an ecosystem for digital services and its affordable and simplified pricing strategy offers every Indian a chance to experience the “power of data”,” he said.

Net subscriber addition for Jio during the past 12 has been 92 million, which was the highest in the industry by a substantial margin. Jio’s average data consumption was at 10.6 GB per user per month, average voice consumption at 744 minutes per user per month and average video consumption at 15.4 hours per user per month.

RIL’s gross refining margin for the first quarter of FY19 stood at $ 10.5 per barrel as against $ 11.9 per barrel in Q1 of FY18. Cash and cash equivalents as of June 2018 were at Rs 79,492 crore compared to Rs 78,063 crore as of March 2018. These were in bank deposits, mutual funds, CDs, government bonds and other marketable securities, it said. The capital expenditure for the quarter ended June 2018 was Rs 33,267 crore, including exchange rate difference.