Mukesh Ambani-led Reliance Industries (RIL) on Friday reported a 17.3 per cent increase in net profit to Rs 94.35 billion for the quarter ending March 31.
Its revenue stood at Rs 1,291.2 billion, an increase of 39 per cent compared to Rs 928.89 billion in the corresponding period of the previous year. Higher interest and depreciation charges with the commissioning of projects across businesses, however, resulted in relatively lower growth in profit after tax (PAT).
Reliance Jio Infocom reported its second quarterly net profit at Rs 5.1 billion, marginally up from the preceding quarter ended December when the telecommunications subsidiary showed a profit for the first time at Rs 5.04 billion.
For 2017-18, the Jio operations reported a PAT Rs Rs 7.23 billion against a loss of Rs 31 million in 2016-17.
RIL’s gross refining margin (GRM) was down marginally at $11 a barrel for the quarter from $11.6 in the previous quarter. Increase in consolidated revenue was primarily on account of volume increase with starting up of petrochemicals projects and oil price-related increase in realisations for refining and petrochemical products.
The company said increase in consolidated revenues reflected robust growth of 134 per cent in its retail business and continuing growth momentum in wireless subscriber additions for digital services business.
For the full year of 2017-18, RIL recorded consolidated revenue of Rs 4,307.31 billion, an increase of 30.5 per cent, compared to Rs 3,301.8 billion in the previous year.
Exports (including deemed exports) from India during the January-March 2018 quarter were higher by 32.5 per cent at Rs 512.95 billion ($7.9 billion) as against Rs 87.18 billion in the corresponding period of the previous year due to higher volumes and product prices in refining and petrochemical business.
Commencement of the digital services business, petrochemical projects in Jamnagar and higher loan balances during the quarter ending March 2018, pushed up the company’s finance cost to Rs 25.66 billion ($394 million) as against Rs 5.56 billion in the last quarter of 2016-17.
Commenting on the results, Mukesh Ambani, chairman and managing director, RIL, said, “The year (2017-18) was a landmark year for Reliance, where we established several records on both operating and financial parameters. Reliance has become the first Indian company to record PBDIT (profit before depreciation, interest and tax) of over $10 billion with each of our key businesses — refining, petrochemicals, retail and digital services achieving record earnings performance. Substantial synergies, productivity gains and production growth in our energy and materials business have allowed us to perform at very competitive levels despite the uptrend in oil prices through the year.”
Increase in petroleum product prices were led by 18 per cent year-on-year increase in brent oil price to $57.5 a barrel.
RIL’s consolidated revenue was also boosted by robust growth in the retail and digital services businesses. Reliance Retail recorded a 105 per cent surge in revenue to Rs 691.98 billion. RJIL’s Wireless Telecommunication Network recorded revenue of Rs 239.16 billion in its very first year of commercial operations.