Reliance Industries Q2 net profit jumps 18% to record Rs 11,262 cr on turnaround in refining margins

Oil-to-telecom conglomerate, Reliance Industries on Friday reported an 18.3 percent rise in consolidated net profit to a record Rs 11,262 crore for the second quarter of the current fiscal on the back of a turnaround in refining margins and continued rise in consumer businesses of retail as well as telecom.

#2QWithCNBCTV18 | Reliance Q2 profit, EBITDA & EBITDA margin comes in higher on a sequential basis pic.twitter.com/i1ppNPtIue

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Net profit in July-September stood at Rs 11,262 crore, compared to Rs 9,516 crore profit in the same period a year back. Consolidated revenue rose to a record Rs 163,854 crore, up 4.8 percent from Rs 1,56,291 crore in the corresponding quarter last year, the company said in a statement. Consumer businesses, which till last year accounted for a quarter of the company’s pre-tax profit, contributed a third of EDITDA in Q2.

Retail business EBITDA rose 13 percent to Rs 2,322 crore while telecom arm Jio posted a net profit of Rs 990 crore. Its telecom subsidiary, Reliance Jio posted a pre-tax profit up 21 percent to Rs 3,222 crore in July-September. Its net profit jumped 45.4 percent to Rs 990 crore while operating revenue up 33.7 percent to Rs 12,354 crore in the quarter ended September. Commenting on the results, Mukesh Ambani, Chairman and Managing Director, Reliance Industries Limited said, “The company has reported record net profit for the quarter. These excellent results reflect benefits of our integrated oil to chemicals (O2C) value chain and the rapid scale-up of our consumer businesses. During this quarter, our O2C businesses gained from favourable fuel margins environment, feedstock sourcing flexibility and higher petrochemicals volumes. Our O2C business, with new partnerships, is best placed to pursue growth and substantial value creation." Continuing growth trends in our retail business is heartening and guided by our obsession to provide the best value for our customers, Reliance Retail delivered robust performance with record quarterly revenues and EBITDA, Ambani said. He further said that company’s digital services business is recognised for having the nation’s widest 4G wireless network. “As an outcome of our team’s relentless efforts, Jio has become India’s largest mobility services provider,” Ambani said.

Jio today also has the highest market share in terms of 4G subscriber base and 4G data traffic in India and telco executing yet another game-changing initiative with the largest ever roll out of broadband services to home and enterprises through JioFiber, he said. “As always, we are committed to bring to Indian consumers more world-class products and services and providing them unique value propositions through innovation and technology”, Ambani said in the statement. Meanwhile, earlier in the day, RIL added another feather to its cap by becoming the first Indian firm to hit the Rs 9 lakh crore market valuation mark in intra-day trade. The company’s market valuation zoomed to Rs 9,05,214 crore on the BSE during the day. However, at the close of trade, the company’s market capitalisation (m-cap) settled at Rs 8,97,179.47 crore. Shares of the country’s most valued company rose by 1.37 percent to close at Rs 1,415.30 ahead of its earnings announcement. During the day, it spurted 2.28 percent to a record Rs 1,428. (With PTI inputs) (Disclaimer: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd which publishes Firstpost)