Reliance Industries Limited posted consolidated net profit of Rs 9,459 crore -- up 17.9 per cent from the previous quarter last year -- in its Q1 financial results announced on Friday. The company's consolidated revenue stood at Rs 141,699 crore, which rose 9.7 per cent sequentially and 56.5 per cent from the previous quarter last year.
The increase in revenue is primarily on account of higher sales from refining and petrochemical products. Consumer businesses also provided a further boost to the overall revenue. Operating profit before other income and depreciation increased 64.6 per cent to Rs 20,661 crore on the back of 33 per cent volume growth and significant margin improvement in petrochemical business. RIL's operating profit was Rs 12,554 crore in the same period last year. Basic earnings per share (EPS) for Q1 was Rs 16 against Rs 13.5 in the corresponding period last year.
"We continue to focus on strong delivery through operational excellence in our portfolio of businesses. Financial results of 1Q 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," said Mukesh Ambani, Chairman, Reliance Industries.
Earlier, analysts had estimated the oil-to-telecom conglomerate to post consolidated net sales of Rs 1,02,690 lakh crore for Q1, a Bloomberg poll said. Another poll, reported by Mint, suggested the company would make around Rs 9,554 crore net profit. However, the company was able to beat the industry estimates.
Petrochemicals segment's EBIT -- which represents the approximate amount of operating income generated -- was recorded at Rs 7,857 crore, which was supported by strong Y-o-Y volume growth, improvement across polyester chain margins and stable polymer margins. The oil and gas segment's EBIT (Rs 447 crore Y-o-Y) was impacted by lower volumes due to natural decline.
The company's gross refining margin (GRM), which is crucial for oil refiners, for the quarter stood at $10.5/bbl. GRM was expected to fall in the range of $10-11 per barrel due to the Singapore benchmark, which averaged around 6 per cent low to $6 per barrel. The company had reported GRM of $11 per barrel in the last quarter of the FY18.
The customer centric businesses, Reliance Retail and Reliance Jio Infocomm, also performed well. Reliance Retail recorded a sharp 124 per cent increase in revenue to Rs 25,890 crore and digital services business contributed Rs 9,653 crore for the quarter. Network18 Media and Investments Limited reported the revenue of Rs 1,124 crore, registering 36.2 per cent rise sequentially.
(Edited by Manoj Sharma)