Reliance Industries Q3 net rises 25% to Rs 9,423 cr on higher refining margins, Jio posting profit
Consolidated net profit of Reliance Industries in Oct-Dec stood at Rs 9,423 cr while standalone earning was up 5.4 percent at Rs 8,454 cr
New Delhi: Oil-to-telecom conglomerate Reliance Industries on Friday reported its highest quarterly net profit of Rs 9,423 crore on record earnings from petrochemical business and telecom unit Jio logging its first ever profit.
Consolidated net profit of Rs 9,423 crore, or Rs 16 per share, in October-December was 25.1 percent higher than Rs 7,533 crore, or Rs 12.8 a share, in the same quarter of last fiscal, the company said in a statement.
Jio, which with 160.1 million subscribers is the world's largest and fastest growing mobile data network, turned positive "in only the second quarter of commercial
operations", logging a net profit of Rs 504 crore, it said.
Reliance Jio Infocomm Ltd, or Jio, disrupted the telecom industry with free voice and cut-price data in September 2016.
Jio, which started commercial operations in second quarter with a loss of Rs 271 crore, has been blamed for falling profits of industry peers. Bharti Airtel, the
country's largest telecom operator, on Thursday reported its seventh straight quarterly decline in net profit.
Reliance said pre-tax profit from petrochemical business, where all expansion projects have been completed, was at record high of Rs 5,753 crore in the third quarter of the current fiscal.
The owner of world's largest refining complex earned $11.6 on turning every barrel of crude oil into fuel in October-December as against a gross refining margin (GRM) of $10.8 in the same period last year.
The GRM was, however, lower than $12 recorded in the July-September quarter of the current fiscal.
Profit from the refining and marketing business was marginally down at Rs 6,165 crore as compared to Rs 6,194 crore in Q3 of last fiscal. In comparison to the previous quarter (July-September), the segment profit was down 7 percent.
While its oil and gas business logged a loss of Rs 291 crore, Reliance said its retail business was the fastest growing in the country, with revenue and pre-tax earnings more than doubling to Rs 18,798 crore and Rs 487 crore, respectively.
Retail business is however yet to make its first net profit.
The company's Chairman Mukesh Ambani said record-setting consolidated quarterly earnings marks the culmination of petrochemical expansion projects and the first positive net profit contribution from newest business line –- digital services under the Jio brand.
"Our refining business has delivered 12 consecutive quarter of double-digit refining margins, demonstrating operating excellence and healthy industry fundamentals," he
Also, benefits of the large investments in petrochemical business are beginning to show with the segment reporting its highest ever earnings, he said.
"Jio's strong financial result reflects the fundamental strength of the business, significant efficiencies and right strategic initiatives," he said.
Revenue was up 30.5 percent at Rs 109,905 crore.
The company's debt was marginally lower at Rs 213,206 crore on 31 December, 2017 as compared to Rs 214,145 crore at the end of previous year. Outstanding debt as on 31 March, 2017 was Rs 196,601 crore.
Cash in hand was also marginally higher at Rs 78,617 crore as compared to Rs 77,014 crore on 30 September, 2017.
The quarter also saw Reliance post record consolidated pre-tax profit of Rs 13,789 crore, up 44.8 percent from last year, and highest ever standalone profit of Rs 8,454 crore, up 5 percent over the previous fiscal.
(Disclosure: Reliance Industries Ltd is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd)
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