RIL Net Rises 17.9% On Volume Growth

RIL net rises 17.9% on volume growth

Reliance Industries (RIL) reported a 17.9% increase in its first-quarter net profit to Rs. 9,459 crore led by a 33% growth in volumes and significant margin improvement in the petrochemicals business that offset the fall in gross refining margins (GRMs).

The GRM (which is the difference between the cost of sourcing crude and finished products) for the first quarter ended June, stood at $10.5 per barrel compared with $11.9 per barrel a year earlier.

Mukesh Ambani, chairman and managing director of RIL said, “Financial results of Q1 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. Continuing strength in global demand for oil products and implementation of more stringent environmental norms for marine fuels augurs well for our refining business”.

He added, “Our consumer businesses continue to scale new highs and now account for nearly 21% of consolidated segment Ebitda”. “Retail business revenues have more than doubled and Ebitda has trebled on a year-on-year basis. The scalability of our consumer business platforms is driving unprecedented value generation for our customers, our country and our shareholders.”

Reliance Retail recorded a sharp 124 per cent increase in revenue to Rs 258.9 billion and digital services business contributed Rs 96.53 billion for the quarter.

Reliance Jio reported a 20% rise in net profit to Rs. 612 crore on revenues of Rs. 9,567 crore. It had 215.3 million customers as on June 30, making it the third-largest telco after the Vodafone-Idea combine (a proposed merger which is close to getting necessary regulatory approvals) and Bharti Airtel.

“Pet coke gasification is likely to lead to a rebound in GRM by the end of FY19. Overall, we expect RIL to continue to report robust growth driven by e-commerce play in retail, fuller utilization of large investments in the petrochemical segment and rise in revenue market share to 43% for Jio in FY2022.”

RIL shares rose 1.73% to Rs. 1,129.6 on the BSE in a firm market on Friday.

Full article here.


Please enter your comment!
Please enter your name here