RIL’s Q3 net zooms 38.7% to Rs7,290 crore boosted by record refining margins
19 Jan 2016
Reliance Industries has posted a consolidated net profit of Rs7,290 crore for the September-December 2015-16 quarter, a 38.9 per cent year-on-year increase, on the back of record refining margins arising from cheap crude oil.
RIL's refining business delivered yet another record performance on the back of seven-year high refining margins and highest-ever crude throughput.
The Mukesh Ambani company had posted a net profit of Rs5,256 crore in the corresponding quarter a year ago.
The company reported a stand-alone profit of Rs7,218 crore for the December quarter, 41.9 per cent higher from the year-ago quarter. The stand-alone numbers do not include the company's US shale oil and gas business and its domestic organised retail business.
Consolidated net sales for the December quarter, however, were down 23.9 per cent at Rs73,341 crore against Rs96,330 crore in the year-ago quarter.
Stand-alone net sales were Rs61,125 crore, down 26 per cent.
However, the strong operating performance from refining and petrochemicals businesses coupled with favourable exchange rate movement was partially offset by lower contribution from oil and gas business.
''Our portfolio of world-class refining and petrochemical assets are paying-off handsomely. Refining business delivered yet another record performance on the back of seven-year high refining margins and highest-ever crude throughput. In the current nine-month period, our refining business EBIT (earnings before interest and tax) has surpassed the record earnings it achieved in FY15,'' Mukesh Ambani, chairman and managing director, said.
''The petrochemical business also delivered amongst its best quarterly performance, driven by robust polymer margins. The benefits of low crude oil and energy prices for our downstream businesses clearly outweigh the impact of these factors on our upstream segment, reflecting in the record earnings for the quarter,'' he added.
Gross refining margins (GRM) - the difference between the per-barrel price of crude oil and the value of products distilled from it - for the quarter stood at $11.5 a barrel against $7.3 a year ago.
RIL's telecom unit Reliance Jio Infocomm Ltd is preparing to launch its 4G mobile phone services in the country, marking Mukesh Ambani's return to the telecom business after more than a decade.
''In the last quarter we also achieved significant milestones in our consumer facing businesses. In the biggest ever launch, Jio services have been offered to over 100,000 group employees and their families enabling them to experience the world-class digital services and applications, and help co-creating the best experience for all our customers,'' Ambani said.
''Our retail business crossed Rs6,000 crore quarterly revenue milestone with a footprint now encompassing over 3,000 stores in 371 cities,'' Ambani said.
On Monday, Reliance Jio Infocomm, the telecom business of Mukesh Ambani's RIL, said it will raise Rs15,000 crore through a rights issue.
Reliance Jio plans commercial launch of its fourth-generation (4G) mobile-phone services in the next few months.
On Tuesday, shares of RIL closed at Rs1,043.60 on the BSE, up 2.51 per cent from previous close.