Reflective of the weakness in the refining business, gross refining margin (GRM) for the company further fell to $8.8 per barrel. For the September 2018 ended quarter, RIL reported GRM at $9.5 per barrel, its lowest since the December 2014 ended quarter. Analysts expect the weakness in refining margins to continue for another two to three quarters. However, expect a meaningful recovery in the second half of 2019. GRM is what a refiner makes for converting one barrel of crude oil into fuel. Analysts had estimated GRM for the quarter under review to be in the range of $7.5 to $ 8.5 per barrel.
"In an oil price environment that witnessed heightened volatility through the quarter, RIL has delivered strong quarterly results on a consolidated basis. Competitive cost positions and integration benefits is core to our oil to chemicals (Refining and Petrochemicals) business, driving sustained performance even in challenging global business environment," said Mukesh Ambani, chairman and managing director of the company.
Reliance Jio Infocomm Ltd, the telecom arm of Mukesh Ambani-controlled RIL telecom arm Reliance Jio, reported a profit of Rs 831 crore for the Dember quarter (Q2), a rise of 22 per cent on a sequential basis. Average revenue per user dropped marginally to Rs 130 in line with street estimates. The subscriber base for the quarter stood at 280.1 million, missing analyst targets.
Operating profit before other income and depreciation for the quarter under review increased by 21.3 per cent to Rs 21,317 crore from Rs 17,580 crore in the corresponding period of the previous year.
Outstanding debt as on December 31, 2018, was Rs 2.74 trillion, compared to Rs 2.18 trillion as on March 31, 2018.