Reliance Industries reports record Q4 net profit of Rs10,362 cr

RIL’s revenue for the January-March 2018-19 quarter increased by 19.4 per cent to Rs154,110 crore ($22.3 billion) while profit before depreciation, interest and taxes (PBDIT) increased by 16.3 per cent to Rs24,047 crore ($3.5 billion) and profit before tax (PBTT) by 4.6 per cent to Rs13,858 crore ($2.0 billion).

RIL said its standalone net profit for the quarter ended 31 March 2019, however, was lower by 1.6 per cent at Rs8,556 crore ($1.2 billion) while revenue for the quarter was down 0.3 per cent at Rs90,648 crore ($13.1 billion), mainly due to a 4.4 per cent decline in exports to Rs49,052 crore ($7.1 billion).

Stand-alone PBDIT, however, increased by 3.4 per cent to Rs16,587 crore ($2.4 billion) while profit before tax was up 4.8 per cent at Rs11,331 crore ($1.6 billion).

The company's Q4 gross refining margin (GRM) came in at $8.2 per barrel against $8.8/bbl reported in the December quarter of FY19, and $11/bbl in Q4FY18.

Net profit for the full financial year 2018-19 increased by 13.1 per cent to a record Rs39,588 crore ($ 5.7 billion). 

Profit before depreciation, interest and taxes (PBDIT) jumped 26.8 per cent to Rs92,656 crore ($ 13.4 billion).

RIL also recorded the highest annual earnings before interest and taxes (EBIT) for its petrochemical, retail and digital services.

Revenue from retail business crossed Rs100,000 crore while revenue and EBIT of digital services and retail business nearly doubled.

“During FY19, we achieved several milestones and made significant strides in building Reliance of the future. Reliance Retail crossed Rs1,00,000 crore revenue milestone, Jio now serves over 300 million consumers and our petrochemicals business delivered its highest ever earnings," Reliance Industries chairman and managing director Mukesh Ambani said.

Q4 revenue from the petrochemicals segment increased 11.3 per cent YoY to Rs42,414 crore ($6.1 billion) mainly due to the increase in price realizations and volumes in PTA, PP, and Paraxylene.

Petrochemicals segment EBIT came in at Rs7,975 crore, up 23.9 per cent YoY compared to Rs6,435 crore in the corresponding quarter of the previous year.

Petrochemical segment recorded EBIT margin of 18.8 per cent against 16.9 per cent in Q4FY18 aided by strength in PX margins.

Retail segment revenue for Q4 grew by 51.6 per cent to Rs36,663 crore as against Rs24,183 crore in the corresponding period of the previous year.

Retail business PBDIT for Q4 FY19 grew by 77.1 per cent to Rs1,923 crore as against Rs1,086 crore in the corresponding period of the previous year.

Reliance Jio's fourth-quarter net profit increased 64.7 per cent year-on-year to Rs840 from Rs510 in the same quarter last year on standalone revenue of Rs11,106 crore as compared to Rs7,128 crore in Q4FY18, a jump of 55.8 per cent.

For the full year, Reliance Jio's FY19 net profit was up 309 per cent YoY to Rs2,964 crore from Rs723 crore.

Reliance Jio’s subscriber base has crossed 300 million, which is the fastest operator globally to reach this milestone.

The company attributed the robust revenue performance to strong growth in its retail and digital services businesses which grew by 51.6 per cent and 61.6 per cent, respectively. Higher petrochemical volumes also contributed to growth in revenue, the company said.

The company's board has recommended a dividend of Rs6.50 per equity share of Rs10 each for the financial year ended 31 March 2019.

The company has approved an appropriation of around Rs 30,000 crore ($4.3 billion) to the general reserve. 

Consolidated debt-to-equity ratio stood at 0.74 times as of 31 March against 0.87 times in December quarter. The figure stood at 0.75 times as of 31 March 2018. 

Overall outstanding debt as on 31 March stood at Rs2,87,505 crore compared with Rs218,763 crore last year. 

The company said it has completed demerger of tower and fibre assets business. The transfer of RJIL fibre and tower undertaking to separate companies, through NCLT approved Composite Scheme of Arrangement, was completed with effect from 31 March. 

This transaction has led to deleveraging of RJIL balance sheet. Future capex on passive infrastructure assets would be undertaken by the two entities. Liabilities worth Rs1,07,000 crore have been transferred from RJIL 

RIL said the resolution plan jointly submitted by Reliance Industries Limited and JM Financial Asset Reconstruction Company Limited (JMFARC) for acquisition of Alok Industries Limited under the Corporate Insolvency Resolution Process of the Insolvency and Bankruptcy Code 2016, has been approved by the National Company Law Tribunal, Bench at Ahmedabad by its order dated 8 March 2019, subject to certain conditions. The Resolution Plan will be implemented post the receipt of statutory and regulatory approvals.

Besides, RIL completed acquisition of 100 per cent stake of Radisys Corporation through a special purpose vehicle (SPV) set up in US for cash consideration aggregating to approximately $75 million equity value, based on current outstanding and dilutive equity share impact.

RIL through a wholly owned subsidiary has entered into an MOU with NMSEZ to sub-lease land of about 4,000 acres along with the associated development rights subject to fulfilment of certain conditions.

Reliance Brands Limited (RBL), a subsidiary of the company, has acquired a further stake of 2.5 per cent in Future101 Design Private Limited (Future101), for a consideration of Rs1.99 crore, taking its total stake in Future101 to 15 per cent.

Reliance Retail Ventures Limited (RRVL) acquired a further stake of 9.44 per cent in Genesis Colors Limited (GCL), for Rs45 crore, taking its total stake in GCL to 29.07 per cent on the enhanced capital of GCL. Consequently, the stake of RBL in GCL has gone up to 43.66 per cent and the aggregate equity shareholding of RRVL and RBLin GCL now stands at 72.73 per cent.

Reliance Industrial Investments and Holdings Limited (RIIHL) has entered into several agreements, including an agreement for acquisition of stake in:

·        Reverie Language Technologies Private Limited; 

·        C-Square Info Solutions Private Limited;

·        Grab A Grub Services Private Limited;

·        SankhyaSutra Labs Private Limited; and

·        Surajya Services Private Limited.

RIL also sold its East West pipeline project to India Infrastructure Trust, an InvIT set up by Brookfield as sponsor and 90 per cent investor in a Rs13,000 crore deal.

Reliance Jio Infocomm Limited also terminated a master agreement signed with Reliance Communications Ltd dated 28 December 2017 (subsequently extended on 31 December 2018) and a Spectrum Trading Agreement dated 11 August  2018 executed between and amongst Reliance Jio Infocomm Limited and Reliance Communications Limited and its affiliates.

Reliance Ethane Holding Pte Ltd (REHPL), a wholly owned subsidiary of the company owning 6 Very Large Ethane Carrier (VLEC) companies recently entered into a binding arrangement with Mitsui OSK Lines, Japan and another investor for investment in the 6 companies, resulting in the 6 companies being jointly controlled by REHPL and Mitsui OSK Lines, Japan.