Reliance net vaults 25% to Rs9,423 cr as Jio swings to profit
20 January 2018
Reliance Industries Ltd (RIL) has reported a 25.1 per cent year-on-year growth in its consolidated net profit for the fiscal third quarter (October-December 2017-18) at Rs9,423 crore, on the back of higher petrochemical margins and a turnaround in Reliance's telecom businesses, Reliance Jio Infocomm.
Consolidated revenue for quarter grew 21.75 per cent to Rs1,02,500 crore in Q3, aided by volume increase with start-up of petrochemicals projects and increase in prices in refining and petrochemical businesses.
"This quarter marks the culmination of petrochemical expansion projects and the first positive net profit contribution from newest business line – Digital Services," Mukesh Dhirubhai Ambani, chairman and managing director, Reliance Industries, said.
"Refining business has delivered 12 consecutive quarter of double-digit refining margins, demonstrating operating excellence and healthy industry fundamentals," he added.
Gross refining margin stood at $11.6 a barrel, outperforming Singapore complex refining margins by $4.4 a barrel.
This was, however, lower compared to a GRM of $12 a barrel in the previous quarter.
Reliance Industries' profit on a standalone basis, which includes the company's refining, petrochemicals and oil and gas exploration businesses, but primarily excludes retail and telecom operations, stood at Rs8,454 crore in the quarter ended 31 December, up from Rs8,022 crore in the previous-year quarter.
Ambani said, "Benefits of the large investments in petrochemical business are beginning to show with the segment reporting its highest ever earnings."
Petrochemical business showed a growth of 47.6 per cent (sequential growth of 20.45 per cent) at Rs33,726 crore with record level EBIT (earnings before interest and tax) rising 16 per cent (73 per cent YoY) due to higher volumes and prices.
Refining segment registered a 23 per cent growth (8.74 per cent quarter-on-quarter) at Rs75,865 crore.
Reliance Retail, which witnessed stellar performance across all consumption baskets during the quarter, grew 116.4 per cent (28.3 per cent QoQ) to Rs18,798 crore for the quarter ended December 2017. EBIT growth was 110.8 per cent (45.8 per cent QoQ) at Rs487 crore in Q3.
The capital expenditure of Rs17,336 crore for the quarter ended December 2017 was principally on account of digital services business, balance of expenditure for projects in the petrochemicals and refining business at Jamnagar and in organized retail business, the company said.
Finance cost during the quarter declined to Rs2,095 crore, from Rs2,272 crore in previous quarter.
Reliance Industries in Q3 has reported standalone profit growth of 2.3 per cent at Rs8,454 crore and revenue growth of 5.8 per cent at Rs75,913 crore compared to Q2FY18.