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RIL reports 12.5% growth in net profit to Rs. 8109 crore in Q2

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Energy and petrochemicals major Reliance Industries Limited (RIL) today reported a 12.5 percent growth in its consolidated net profit in the second quarter (Q2) of financial year 2017-18, ended September 30, to Rs. 8109 crore over Rs. 7,209 crore in the same quarter of the previous financial year.
 
Reporting its financial performance for the quarter, the company said its revenue had gone up by 23.9% to Rs. 101,169 crore.
 
On a standalone  basis, the company said its net profit had gone up by 7.3% to Rs. 8,265 crore and its revenue by 16.8% to Rs. 75,165 crore.
 
The company said it had achieved a gross refining margin (GRM) of $ 12/bbl for the quarter.
 
The company also announced that its wholly owned subsidiary, telecom services provider Reliance Jio Infocomm Limited, had made a net loss of Rs. 270.59 crore in the quarter.
 
RIL Chairman and Managing Director Mukesh D. Ambani said, “Our company reported another quarter of robust performance. I am delighted to share that this includes the financial performance of Reliance Jio which had a positive EBIT contribution in its first quarter of commercial operations."
 
"The results also reflect strong underlying fundamentals of our refining and petrochemicals businesses. Sustained demand growth coupled with supply disruptions further tightened demand-supply balances globally during the quarter. The benefits of optimizing our business through new projects are beginning to emerge. The structural strength in energy and materials business environment augurs well for our new capacities which are coming on-line this year," he said.
 
Mr. Ambani said the company's retail business had delivered broad based, sustainable and profitable growth through improved operational excellence.
 
"The world is transforming, turning digital and India is not going to be left behind. India is ready to go digital, move from voice to data and Jio is creating the foundation of data for the next generation business. The rapid uptake of Jio services reflects the latent need of the society. We are confident that Jio will bring significant benefits to the Indian economy and the Indian customers and will take India to a much higher pedestal. We are focussed on providing multi-layered digital services on top of the basic connectivity service to optimally utilise our world class infrastructure.
 
"The strong financial results of Jio demonstrates the robust business model of Jio and the significant efficiencies that the company has built through its investment in the latest 4G technology and right business strategy. As always, the group has demonstrated excellence in execution, vision and commercial acumen," he said.
 
A press release from RIL said the increase in its revenue was primarily on account of increase in prices and volumes in refining, petrochemicals and retail businesses.
 
"Further, the consolidated revenues reflect the commencement of commercial operations of RJIL’s Wireless Telecommunication Network during the quarter.
 
"Exports (including deemed exports) from India refining and petrochemical operations were higher by 10.2% at Rs. 41,560 crore ($ 6.4 billion) as against Rs. 37,717 crore in the corresponding period of the previous year due to higher volumes and product prices. Other expenditure increased by 35.8% to Rs.  12,323 crore ($ 1.9 billion) as against Rs. 9,073 crore in corresponding period of the previous year primarily due to network expenses and access charges pertaining to the digital services business post commencement of commercial operations.
 
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"Operating profit before other income and depreciation increased by 39.4% to Rs. 15,565 crore ($ 2.4 billion) from Rs. 11,164 crore in the corresponding period of the previous year. Strong operating performance was driven by the refining, petrochemicals, retail businesses and positive contribution from digital services starting from this quarter," it said.
 
The company said its outstanding debt as on 30th September 2017 was Rs. 214,145 crore ($ 32.8 billion) compared to Rs. 196,601 crore as on 31st March 2017. Cash and cash equivalents as on 30th September 2017 were at Rs. 77,014 crore ($ 11.8 billion) compared to Rs. 77,226 crore as on 31st March 2017. These were in bank deposits, mutual funds, CDs, Government Bonds and other marketable securities.
 
The capital expenditure for the quarter ended 30th September 2017 was Rs. 15,653 crore ($ 2.4 billion) including exchange rate difference capitalization. Capital expenditure was principally on account of ongoing projects in the petrochemicals and refining business at Jamnagar and digital services business.
 
Reporting its first quarterly financial performance, Reliance Jio said it had notched consolidated value of services of Rs. 7213 crore and consolidated EBIT of Rs. 261 crore. The standalone revenue from operations was Rs. 6,147 crore.
 
RJIL said its subscriber base as on September 30 was 138.6 million, with a net subscriber addition of 15.3 million during the quarter.
 
NNN
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