RIL April-June net rises 7.6% to Rs8,820 cr
28 Jul 2018
Reliance Industries Ltd’s has reported a 7.6 per cent increase in its net profit for the fiscal first quarter ended 30 June 2018 at Rs8,820 crore ($1.3 billion), helped by strong performance led by the petrochemicals segment, which reported a 35 per cent year-on-year jump in volumes on the back of an expanded capacity.
RIL’s revenue for the quarter increased by 41 per cent to Rs99,318 crore ($14.5 billion) Profit before depreciation, interest and taxes increased by 27.5 per cent to Rs17,222 crore ($2.5 billion) while profit before tax increased by 16.7 per cent to Rs12,322 crore ($1.8 billion).
Petrochem realisations were up 24 per cent for the quarter. The company’s earnings before interest and taxes (EBIT) rose 95 per cent year-on-year to Rs7,857 crore.
RIL’s gross refining margin for the quarter stood at $10.5 per barrel.
RIL’s telecom arm, Reliance Jio Infocomm Ltd has reported a net profit at Rs612 crore for the April-June 2018 – a 19.9 per cent growth over the previous quarter, "despite competitive intensity". The company had recorded a net profit of Rs510 crore in the January-March 2018 quarter.
Reliance Jio's revenue from operations stood at Rs8,109 crore in the June quarter, up nearly 14 per cent from the fourth quarter of FY'18. Its subscriber base was at 215.3 million at the end of June.
Surprisingly, it reported a mere 2 per cent decline in average revenue per user (Arpu), despite waiving off the prime membership fees since April, and also taking a hit on account of the various discounts offered.
Jio’s subscriber base increaded in tandem with growth in revenue, which grew nearly 14 per cent quarter-on-quarter to Rs9,567 crore. Jio’s Ebit grew at a similar pace to Rs1,708 crore.
Along with the retail business, the company’s consumer businesses now account for over a fifth of its operating profit. RIL’s retail arm also reported a jump in margins quarter-on-quarter.
Jio hopes to steadily increase its market share to its targeted level of 50 per cent over time.
Reliance Brands Limited, a subsidiary of the company, has purchased 100 per cent stake in Rhea Retail Pvt Ltd. Rhea is in the business of selling of products in India for expectant mothers and in general merchandise for children (mothercare).
Reliance and BP also announced the sanctioning of the ‘Satellite cluster’ project in block KG D6. The companies are moving forward to develop the block’s discovered deep-water gas fields in an integrated series of projects, bringing new gas production for India.