RIL logs record net on firm petro, retail show

New Delhi : Reliance Industries (RIL) on Friday reported its highest ever quarterly net profit as bumper earnings from the retail business, improved profitability of telecom arm and near doubling of earnings from petrochemical business offset lower margins from oil refining business.

Consolidated net profit of Rs 9,459 crore, or Rs 16 per share, in April-June, was 17.9 per cent higher than Rs 8,021 crore, or Rs 13.5 a share, in the same period of previous fiscal, the oil-to-telecom conglomerate said. Revenue was up 56.5 per cent at Rs 141,699 crore.

The April-June 2017 profit has been taken after excluding Rs 1,087 crore exceptional income from the sale of a stake in Gulf Africa Petroleum Corp, the company said.

Its retail business, which comprises of 8,533 stores across over 5,200 towns and cities, saw pre-tax profits jump by a 266 per cent to Rs 1,069 crore on more than doubling of revenues to Rs 25,890 crore.

The petrochemical business saw pre-tax profits jump by 94.9 per cent to Rs 7,857 crore after the company stabalised operations of a new refinery off-gas cracker and other downstream units. The operator of world’s largest oil refining complex saw pre-tax earnings from the business declining 16.8 per cent to Rs 5,315 crore as margins dipped. It earned $10.5 on turning every barrel of crude oil into fuel as compared to a gross refining margin of $11.9 per barrel.

The pre-tax loss of oil and gas business widened to Rs 447 crore from Rs 373 crore in the quarter due to continued decline in production. With telecom continuing to drain investments, Reliance said its outstanding debt rose to Rs 242,116 crore as of June 30 from Rs 218,763 crore as on March 31. Cash in hand was marginally higher at Rs 79,492 crore.

Mukesh D. Ambani, Chairman and Managing Director, RIL, said: “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.”

Petrochemicals business generated record EBITDA with strong volumes and an upswing in polyester chain margins while refining business performance remained steady despite the seasonal weakness in cracks.

To stop Iranian imports RIL said it will stop Iranian crude imports from November if the US sanctions kick in.

It also said this won’t lead to supply disruption as it sources a very small quantity of its total crude imports from Iran now. RIL’s oil imports from Iran had surged by about 45 per cent to 67,000 bpd in 2017 after it began sourcing crude from the country in April 2016 and in the January-April 2018, it imported about 96,000 bpd.

Jio profit jumps 20% to Rs 612 cr

NEW DELHI: Reliance Jio reported a third straight quarterly net profit, as its cut-price plans continued to bring in more customers. Jio, which turned a profit within a year of its launch, recently flagged an upgrade of its feature phone and said it aims to have 100 million users as quickly as possible. Reliance Jio Infocomm, or Jio, posted a profit of Rs 612 crore in the quarter ended June 30, versus Rs 510 crore in the previous quarter. Its revenue from operations came in at Rs 8,109 crore in the June quarter, up nearly 14 per cent from the fourth quarter of FY’18. The subscriber base stood at 215.3 million as on June 30, 2018, the Reliance Industries group firm said. “Jio continues on its path to drive digital revolution in India. We doubled our 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,” Reliance Industries Chairman and Managing Director Mukesh Ambani said. He added that the “continued strength in financial results of Jio despite competitive intensity reinforces the customer uptake of its services and its strong operating leverage”.

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