Driven by growth in its petrochemical and refining business, Reliance Industries (RIL) on Thursday posted an 8.8 per cent rise in net profit at Rs 10,251 crore for the third quarter ended December 2018 as against Rs 9,420 crore in the same period of last year. RIL’s telecom unit Reliance Jio notched up a fifth consecutive profitable quarter with the net profit rising 64.88 per cent at Rs 831 crore as against Rs 504 crore a year ago.
The increase in revenue is primarily on account of higher price realisations and volumes for petrochemical and refining businesses along with continuing strong growth momentum in consumer businesses. Product prices for the refining and petrochemicals business increased in line with 10.4 per cent higher average Brent crude oil price. “The higher volumes in petrochemical business are on account of stabilisation and ramp-up of new petrochemical facilities. Retail business and digital services business recorded an increase of 89 per cent and 51 per cent in revenue during the quarter compared to the corresponding quarter of the previous year,” RIL said.
RIL chairman and MD Mukesh D Ambani said: “In our endeavour to consistently create more value for our country and stakeholders, our company has become the first Indian private sector corporate to cross Rs 10,000 crore quarterly profits milestone. I am proud to be part of the committed and talented team at Reliance that has helped achieve many milestones in our continuing growth journey.”
“In an oil price environment that witnessed heightened volatility through the quarter, RIL has delivered strong quarterly results on a consolidated basis. Competitive cost positions and integration benefits is core to our oil to chemicals (refining and petrochemicals) business, driving sustained performance even in challenging global business environment. In our new-age consumer businesses, we maintained robust growth momentum across retail and Jio platforms and the share of consumer businesses is steadily increasing its contribution to the overall profitability of the company,” Ambani said. Gross refining margin for December 2018 was $ 8.8 per barrel as against $ 11.6 per barrel a year ago.
“In our wireless business, our customer-centric offerings and strong ubiquitous network are helping to digitalise India at an unprecedented rate. As we execute on our strategies to deliver superior products and services to Indian consumers, Reliance is well-positioned for future and for the next cycle of growth,” he said.
According to RIL, revenues have nearly doubled for five consecutive quarters and EBITDA (earnings before interest, tax, depreciation and amortisation) has nearly tripled for four consecutive quarters. “Year-to-date revenues and profits have surpassed the whole of FY18,” it said.
Reliance Retail further consolidated its leadership position and is India’s largest and fastest growing retailer, RIL said. Segment revenue from retail for the third quarter grew by 89 per cent to Rs 35,577 crore as against Rs 18,798 crore in the corresponding period of the previous year. PBDIT (profit before depreciation, interest and tax) for third quarter rose 177 per cent to Rs 1,680 crore as against Rs 606 crore in the corresponding period of the previous year.
On Jio’s business, Ambani said: “The journey of Jio has been truly remarkable and has surpassed all expectations. The Jio family is now 280 million strong and growing on one of the world’s largest mobile data networks, in line with our vision of connecting everyone and everything, everywhere — always at the highest quality and the most affordable price. We are similarly working on re-inventing the connectivity solutions market for homes and enterprise with our next generation FTTX services.”
Reliance Jio has proposed to transfer its fibre undertaking and its tower undertaking to separate companies, through Scheme of Arrangement. RJIL will enter into arrangements for long-term uninterrupted use of these assets, it said.