Business

RIL net rises 17% on petrochem margins

: Reliance Industries gross refining margins fell to $11 a barrel from $11.5 in the year earlier period.

: Reliance Industries gross refining margins fell to $11 a barrel from $11.5 in the year earlier period.   | Photo Credit: P.V. Sivakumar

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Fall in revenue per user hits Jio profit

Reliance Industries’ (RIL) reported fourth-quarter net profit rose 17.3% to ₹9,435 crore riding on superior petrochemical margins that accounted for a majority of the company’s profits.

Revenue rose 39% to ₹1,29,120 crore driven by a volume increase with the commencement of petrochemical projects and oil price-related increase in realisation for refining and petrochemicals.

Gross refining margin (GRM) for the quarter fell to $11 per barrel compared with $11.5 per barrel in the year-earlier period.

“FY 2017-18 was a landmark year for Reliance where we established several records on both operating and financial parameters,” said Mukesh Ambani, chairman, RIL, commenting on the results.

“Reliance has become the first Indian company to record PBDIT of over $10 billion with each of our key businesses — refining, petrochemicals, retail and digital services achieving record earnings performance.”

Refinery contributed ₹93,519 crore to revenue and ₹5,607 crore to EBIT while petrochemicals contributed ₹38,113 crore to revenue and ₹6,435 crore to EBIT respectively.

Reliance Retail reported 134.1% growth in revenues to ₹24,183 crore and its EBIT rose 291.4% to ₹951 crore. Revenues from oil and gas business fell 43% to ₹746 crore and the segment reported a negative EBIT of ₹600 crore.

Reliance Jio net profit increased marginally by 1.2% to ₹510 crore as the company’s average revenue per user (ARPU) decreased to ₹137 compared with ₹154 in the immediately preceding quarter.

Reduction in tariffs

“The fall in ARPU was primarily due to reduction in tariff plans to match rivals plans during start of the quarter. But we make up for the loss by adding more subscribers,” said Anshuman Thakur, head of strategy and planning at Reliance Jio.

The mobile arm registered 26.5 million new users, taking it total user base to 186.6 million, making it the fourth largest mobile operator in the country after Airtel, Vodafone and Idea Cellular.

Commenting on the results, investment advisor S.P. Tulsian told The Hindu, “Excellent performance from petrochemicals, retail and Jio. Refining was flat while oil and gas continue to disappoint. Jio’s ARPU of ₹137 is better if compared to Airtels ARPU of ₹121. All the businesses are growing except oil and gas.”

RIL had outstanding debt of ₹1,96,601 crore as on March 31, 2018 compared with cash and cash equivalents of ₹78,063 crore.

RIL shares on BSE closed up 1.99% at ₹994.75 in a firm Mumbai market on Friday, valuing the company at ₹6,30,185 crore.

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Printable version | Jan 27, 2020 6:01:36 AM | https://www.thehindu.com/business/ril-net-rises-17-on-petrochem-margins/article23702139.ece

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