Reliance Industries’ net profit rose 18 per cent to Rs.7,113 crore for the first quarter ended June as the company’s world’s largest refinery complex in Jamnagar made more revenue by processing crude oil.
Reliance Jio, the telecommunications arm of Reliance Industries, is testing its fourth-generation wireless network with 1.5 million active consumers and is likely to start its service in the coming months, according to the energy-to-retail conglomerate.
RIL, controlled by India’s richest man Mukesh Ambani, posted an eight-year high gross refining margin of $11.50 compared with $10.40 a barrel a year earlier and profits rose despite a 13.4 per cent drop in revenue to Rs.71,451 crore. Refining business alone contributed Rs.6,593 crore or $1 billion to the earnings before interest and tax (EBIT) — a measure of company’s profitability, while petrochemicals EBIT grew 25.5 per cent to Rs.2,806 crore.
Reliance revenue from organised retail segment grew 45.6 per cent to Rs.6,666 crore as it brought fuel retail operations under organised retail.
RIL continued to be India’s highest indebted company on gross debt basis as it debts stood at Rs.1,86,692 crore. Investment advisor S P Tulsian said that a $2-$3 rise in gross refining margins were because of inventory gains. “The company had Rs.47,000 crore of inventory as on March 31, 2016 and crude prices have increased by 30 per cent in the June quarter alone so the additional profits were because of inventory gains.”
Reliance JioReliance Jio’s test program will be progressively upgraded into commercial operations in coming months, according to a company statement.
“At Reliance Jio, we have built an entire ecosystem that will allow Indians to live the digital life to the fullest. This transformational ecosystem consists of broadband connectivity, devices and powerful applications and services which will be available to every consumer in India,” RIL Chairman Mukesh Ambani said.
