Mukesh Ambani led Reliance Industries (RIL) reported a 25.1% growth in its third quarter net profits to ₹9423 crore as all the segments from refining to petrochemicals and from retail to telecom contributed to the growth. India’s most valued firm by market capitalisation saw a 30.5% growth in its revenues to ₹109,905 crore.
Refining and petrochemicals contributed for 75% of the revenues and over 90% of the profits of the company. Refinery contributed ₹75865 crore to the topline and ₹6165 crore to EBIT, while petrochemicals contributed ₹33,726 crore to the topline and ₹5753 crore to EBIT.
RIL’s GRMs for the quarter improved to $11.6 a barrel from $10.8 a year ago.
“I am happy to share record-setting consolidated quarterly earnings to mark the 40th anniversary of Reliance’s listing in January 1978. Fittingly, this quarter marks the culmination of our petrochemical expansion projects and the first positive net profit contribution from our newest business line – Digital Services,” said RIL chairman Mukesh Ambani.
Organised retail business contributed ₹18798 crore to the topline with EBIT of ₹487 crore, both growing over 100% over the year ago period.
RIL’s debt increased to ₹2.13 lakh crore from ₹1.96 lakh crore in the year ago period, making it India’s most indebted firm. The company had cash and cash equivalents of ₹78617 crore as on December 31.
Reliance Jio with investments of over ₹2 lakh crore reported a net profit of ₹504 crore within two months of commercial operations, when all the telcos are in red. The company had reported a loss of Rs 270 crore in the immediate preceding quarter. Reliance Jio’s total subscriber base stood at 160.1 million as on December 31, making it the fourth largest telco after Bharti Airtel, Vodafone and Idea Cellular.
Talking about Jio’s results, Mukesh Ambani said, “Jio’s strong financial result reflects the fundamental strength of the business, significant efficiencies and right strategic initiatives. Jio has demonstrated that it can sustain its strong financial performance.”
RIL shares on BSE closed up 1.09% at ₹929.35 in a firm Mumbai market on Friday, valuing the firm at ₹5.88 lakh crore.
Investor advisor S.P. Tulsian believes that RIL delivered blast results. “I never expected that Jio will be profitable so soon. It’s beyond imagination that they got over 160 million subscribers. All businesses delivered well and the huge capex has started delivering results for RIL,” Mr. Tulsian told The Hindu.
