Reliance Industries Q2 profit grows 12.5% to Rs 8,109 crore; Reliance Jio logs Rs 271 crore net loss

 BT Online        Last Updated: October 13, 2017  | 19:35 IST
Reliance Industries Q2 profit grows 12.5% to Rs 8,109 crore; Reliance Jio logs Rs 271 crore net loss
RIL chairman Mukesh Ambani

Mukesh Ambani-led oil-to-telecom conglomerate Reliance Industries Ltd (RIL) on Friday posted a 12.5 per cent increase in consolidated net profit to Rs 8,109 crore in the September quarter of FY18, as against Rs 7,209 crore in the corresponding period of the previous year. RIL's telecom arm Reliance Jio logged a net loss of Rs 270.6 crore, beating street estimates.

The revenue of Reliance Industries Ltd increased by 23.9 per cent to Rs 101,169 crore ($15.5 billion) compared to Rs 81,651 crore in the corresponding period of the previous year. Commenting on strong Q2 earnings, RIL Chairman Mukesh Ambani said, "Our Company reported another quarter of robust performance. I am delighted to share that this includes the financial performance of Reliance Jio which had a positive EBIT contribution in its first quarter of commercial operations."

"The results also reflect strong underlying fundamentals of our refining and petrochemicals businesses," Ambani added.

Surprising many analysts, Reliance Jio revenue for September quarter stood at Rs 6147 crore while Jio's EBITDA stood at Rs 1,442 crore. "The strong financial results of Jio demonstrates the robust business model of Jio and the significant efficiencies that the Company has built through its investment in the latest 4G technology and right business strategy. As always, the Group has demonstrated excellence in execution, vision and commercial acumen," Ambani said.

"The rapid uptake of Jio services reflects the latent need of the society. We are confident that Jio will bring significant benefits to the Indian economy and the Indian customers and will take India to a much higher pedestal. We are focussed on providing multi-layered digital services on top of the basic connectivity service to optimally utilise our world class infrastructure," Ambani added.

Operating profit before other income and depreciation increased by 39.4 per cent to Rs 15,565 crore ($ 2.4 billion) from Rs 11,164 crore in the corresponding period of the previous year. Strong operating performance was driven by the refining, petrochemicals, retail businesses and positive contribution from digital services starting from this quarter, a company statement said.

Increase in revenue is primarily on account of increase in prices and volumes in refining, petrochemical and retail businesses. Further, the consolidated revenues reflect the commencement of commercial operations of Reliance Jio Infocomm Limited's wireless telecommunication network during the quarter, RIL said in a press statement.

For September quarter of FY18, revenue from the refining and marketing segment increased by 15.3 per cent Y-o-Y to Rs 69,766 crore ($10.7 billion).

In FY18 Q2, revenue from the petrochemicals segment increased by 24.9 per cent Y-o-Y to Rs 27,999 crore ($4.3 billion) due to higher volumes in the polyester chain and firm prices where as revenue for the oil and gas segment increased by 13.3 per cent Y-o-Y to Rs 1,503 crore due to commencement of CBM production.

Reliance Industries Gross Refining Margin (GRM), the profit earned on each barrel of crude processed, stood at $12/barrel for the quarter, outperforming the benchmark Singapore complex margins by $3.7 per barrel.

Exports (including deemed exports) from India refining and petrochemical operations were higher by 10.2 per cent at Rs 41,560 crore ($6.4 billion) as against Rs 37,717 crore in the corresponding period of the previous year due to higher volumes and product prices.

Outstanding debt as on 30th September 2017 was Rs 214,145 crore ($32.8 billion) compared to Rs 196,601 crore as on March 31, 2017.

Reliance has started operations of its ROGC cracker, MEG and LLDPE plants at Jamnagar. Reliance Retail acquired 40% stake in Genesis Luxury Fashion Private Limited, which operates a rich portfolio of brands such as Armani, Burberry, Coach, Michael Kors and many others.

 

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