Industry

RIL consolidated profit rises 13.5% to record ₹11,640 cr in Q3

File photo of RIL chairman Mukesh Ambani.

File photo of RIL chairman Mukesh Ambani.   | Photo Credit: PTI

Consumer businesses, which till last year accounted for a quarter of the company’s pre-tax profit, contributed a third of EDITDA in the third quarter.

Reliance Industries Limited (RIL) reported a 13.5% growth in its third quarter net profit to ₹11,640 crore led by growth in consumer driven businesses of retail and telecommunications even as core business of petrochemicals disappointed.

The profit came on a 1.4% drop in revenue to ₹1,68,858 crore due to a fall in revenue from  refining and petrochemicals business.

Telecommunications and retail contributed 37% of the company’s EBDITA, up from 27% last year.

Gross refining margins (GRMs)  stood at $9.2 per barrel compared with GRMs of $8.8 per barrel in the year- ago period. This commands a 11-year-high premium of $7.6 per barrel over the regional benchmark Singapore margins.

 Mukesh Ambani, CMD, RIL, said, “The third quarter results for our energy business reflects the weak global economic environment and volatility in energy markets. Within our O2C chain, downstream petrochemicals profitability was impacted by weak margins across products with subdued demand in well-supplied markets. Refining segment performance improved in a difficult operating environment given our continuous focus on cost positions, high operating rates and product placement.”

EBIT from core business of refining grew 11.9% to ₹5,657 crore, petrochemicals EBIT fell by 28.5% to Rs 5880 crore, oil and gas exploration and production reported negative EBIT of Rs 366 crore.

“I am pleased with the progress of our consumer businesses which continue to establish new milestones every quarter. We saw consistent same store sales growth and record footfall across our stores driven by our compelling proposition of great shopping experience and superior value. Jio is focused on giving unmatched digital experience to consumers on a nationwide basis at most affordable price, and accordingly expanding network capacity and coverage to keep pace with demand. We are making good progress on the value unlocking initiatives announced earlier while building on sustainable growth platforms for our shareholders,” Mr. Ambani added.

When asked about the deal with Saudi Aramco, Shrikanth Venkatachari, joint CFO, RIL said, “Talks are on and its progressing well. It’s large deal and won’t happen by end of this fiscal.”

Reliance Retail reported 58% growth in EBIT to Rs 2,389 crore while Reliance Jio reported 63.3% growth in its EBIt to Rs 3857 crore.

During the quarter, theRIL invested Rs 165,000 crore in Jio Platforms Limited (JPL) through Optionally Convertible Preference Shares (OCPS) and Rs 4,961 crore in equity shares. The JPL further acquired RIL's investment of Rs 64,450 crore in RJIL.

When asked for comments, investment advisor S P Tulsian told The Hindu, “Barring petrochemicals, excellent results from Reliance. The consumer facing businesses are driving the show for the company. I anticipate, by end of this year RIL will have market capitalisation exceeding Rs 13 lakh crore from Rs 10 lakh crore now.”

RIL shares on BSE closed up 2.79% at Rs 1580.65 in almost flat Mumbai market on Friday, valuing the company at Rs 10,02,009 crore, the only Indian company to cross Rs 10 lakh crore market capitalisation so far.The results were declared after the closure of market hours.

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Printable version | Feb 18, 2020 9:25:09 AM | https://www.thehindu.com/business/Industry/ril-consolidated-profit-rises-135-to-record-11640-cr-in-q3/article30587463.ece

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