Oil-to-retail conglomerate Reliance Industries’ consolidated net profit grew 12.5% on the year to 67.2 billion rupees ($1 billion) in the quarter ended September 30 as its gross refining margin, a key barometer of performance, reached a seven-year high. Higher utilisation, cost rationalisation and better product prices also aided margins of the refining segment; its earnings before interest and taxes (Ebit) margin, thus, expanded around 500 basis points y-o-y to nine per cent. Petchem Ebit margins, too, were up 300 basis points to 11.9 per cent on the back of strong polymer deltas and healthy polyester chain deltas. The billionaire also said that Reliance Retail achieved a Rs 5,000-crore quarterly turnover mark for the first time, reflecting continuing growth momentum in physical retailing.
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The net profit included gains of Rs 252 crore from sale of investment in USA shale gas pipeline venture, EFS Midstream LLC.
The company said it has substantially completed its network rollout across the country and the network is now being tested and optimised.
Exports from Indian operations were lower due to lower product prices in line with lower crude oil prices, it said.
While PBDIT increased to Rs 210 crore from Rs 186 crore a year earlier, the company said its revenues for the quarter grew by 22% year on year to Rs 5,091 crore from Rs 4,167 crore.
Barring retail, all major business verticals, while remaining profitable, saw significant drops in revenue this quarter: income from the refining and marketing business fell 41 per cent to ₹60,768 crore; petrochemicals took a 20 per cent hit, to fall to ₹21,239 crore; and income from the exploration and production business fell 31 per cent to ₹2,067 crore.
Analysts had expected the company to post profits of around Rs 6,000 crore.
Reliance Industries (RIL)’s September quarter profits came way ahead of Street expectations, largely led by strong margins in the refining business that accounts for about 60 per cent of its profits.
The company added 110 retail stores during the quarter, taking the tally to 2,857 cross 250 cities in India.
For Q2-2016, RIL achieved a turnover of Rs 75,117 crore, a decrease of 33.8 per cent, as compared to Rs 113,396 crore in Q2-2015 and 9.6 per cent lower than the Rs 83064 crore in the immediate trailing quarter.
Cash and cash equivalents as on 30th September 2015 were at Rs 85,720 crore ($ 13.1 billion).
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Anshuman Thakur, head of business strategy development at Reliance Jio said, the company has tied up with five OEMs for handsets and the company will begin by offering 4G services through its own Lyf brand smartphones that will allow customers to make Internet-based calls.
