Mukesh Ambani-led Reliance Industries on Friday reported 6.8 per cent year-on-year (YoY) growth in consolidated net profit at Rs 10,104 crore for the first quarter ended June 30, 2019.
"The Mumbai-headquartered company had posted consolidated net profit of Rs 9,459 crore in the same quarter last year," RIL said in a filing to the Bombay Stock Exchange.
RIL's consolidated net revenue grew by 22.1 per cent to Rs 172,956 crore in April-June quarter of FY20, compared to Rs 141,699 crore in the corresponding quarter.
"Growth in revenue was led by sharp increase in revenue from digital services and retail business,which recorded an increase of 55 per cent YoY and 48 per cent YoY, respectively. Higher refinery throughput on YoY basis, contributed to the increase in revenue for the Refining business," RIL said in the exchange filing.
The other income increased to Rs 3146 crore in Q1FY20 against Rs 1,778 crore in Q1FY19.
The company's operating profit (EBITDA) rose by 5 per cent y-o-y to Rs 22,013 crore from Rs 20,957 crore in the corresponding period of the previous year, helped by strong operating performance in retail and digital services business.
Gross refining margins (GRMs) declined for the eighth consecutive quarter to USD 8.1 per barrel as against USD 10.5 per barrel in the same quarter last year. In the March quarter, it stood at USD 8.2 per barrel.
The revenue of petrochemical business dipped by 6.64 per cent to Rs 37,611 crore during Q1FY20 as compared to Rs 40,287 crore in the same quarter last year, dented by slowdown in demand.
Exports (including deemed exports) from RIL's India operations declined by 4.5 per cent y-o-y to Rs 50,158 crore, due to lower price realisation across petrochemicals and refining products.
As on June 30, 2019, RIL had an outstanding debt of Rs 2,88,243 crore compared to Rs 287,505 crore as on March 31, 2019. Cash, cash equivalents and marketable securities stood at Rs 131,710 crore, while the capital expenditure for the quarter was Rs 22,627 crore.
In a separate development, RIL said that its wholly-owned subsidiary, Reliance Industrial Investments and Holdings Limited (RIIHL), has entered into an agreement with BIF IV Jarvis India Pte Limited, an affiliate of Brookfield for an investment by Brookfield (along with co-investors) of Rs 25,215 crore in the units proposed to be issued by the Tower Infrastructure Trust.
"Brookfield's investment is subject to conditions precedent, including receipt of requisite government and regulatory approvals," the company said.
The company intends to use fund proceeds from the investment by Brookfield to repay certain existing financial liabilities of RJIPL and acquiring the balance 49 per cent of equity share capital of RJIPL, currently held by RIL.
Ahead of Q1, shares of Reliance Industries closed 1.01 per cent lower at Rs 1,249 apiece on the Bombay Stock Exchange.
Edited by Chitranjan Kumar