RIL’s treasury, other incomes fall to 34.5% as Q1 profit jumps to Rs7,113-cr

Reliance Industries Ltd saw a reduction in the proportion of its treasury and other incomes with an increase in refining margins, financial results released on Friday showed. RIL saw its income from treasury and other operations decline to 34 per cent during the April-June 2016-17 quarter from levels over 40 per cent earlier.

After consistently falling for some quarters, the share of other income in Reliance Industries' total net profit of Rs7,113 crore in the June quarter has substantially dropped to 34.5 per cent or Rs 2,378 crore.

On year-on-year basis, this was a massive 50.12-per cent spike from Rs1,584 crore the company had reported in June 2015 quarter when its net profit stood at Rs5,916 crore.

RIL's other incomes were lower at Rs1,953 crore in the January-March 2015-16 quarter on a total net profit of Rs6,925 crore.

RIL has long been parking its surplus funds in government bonds, mutual funds, fixed deposits and other such fixed return instruments. RIL had surpluses of around Rs97,000 crore as of June 2016.

RIL saw a decline in its treasury incomes after the banking sector regulator intervened to check corporate influence in the money and government debt markets.

Reliance, which has the highest cash balance, is also one of the most highly indebted companies in the country. Its debt rose to Rs1,86,692 crore as of June from Rs1,80,388 crore as of March 2016 while the cash balance inched up marginally to Rs90,812 crore from Rs89,966 crore in March 2016.

The company's interest payout jumped to Rs1,206 crore from Rs915 crore a year ago and from Rs842 crore in the March quarter.

Over 90 per cent of RIL's debt is in dollars while almost the entire Rs47,000 crore debt of Rel Jio is rupee-denominated.