RIL reports 18% jump in Q2 net profit to a record Rs 11,262 crore

Topics RIL results

Reliance Industries Chairman Mukesh Ambani at the 40th AGM of the company in Mumbai. (Photo: PTI)
Mukesh Ambani-promoted Reliance Industries Ltd on Friday reported an 18.3 per cent increase in its net profit at Rs 11,262 crore for the quarter ended September 30, 2019, following robust growth in retail and digital service businesses. The 27 per cent and 43 per cent growth in revenue from retail and digital services was partially offset by decrease in refining and petrochemicals primarily on account of over 17 per cent fall in Brent crude price, the company said in a statement.

Its profit before tax increased by 14 per cent to Rs 15,055 crore for the quarter. Its consolidated revenue stood at Rs 163,854 crore, an increase of 4.8 per cent as compared to Rs 156,291 crore in the corresponding period of the previous year.

Reliance Jio's profit before tax increased by 45.2 per cent to Rs 1,525 crore while its revenue increased by 33.1 per cent to Rs 14,562 crore during July-September 2019.

RIL said despite the slowing growth environment, its revenue from the retail business for the quarter surpassed the milestone of Rs 40,000 crore. "To put the scale in perspective, this is higher than the annual revenue registered by the next largest retailer in the country," it said.

Exports (including deemed exports) from RIL's India operations were lower by 12.1 per cent at Rs 53,161 crore as against Rs 60,460 crore in the corresponding period of the previous year primarily due to lower price realization for refining and petrochemical products and emphasis in domestic placement.

Its outstanding consolidated debt as on September 30, 2019 rose to Rs 291,982 crore compared to Rs 287,505 crore as on March 31, 2019.

Mukesh Ambani, chairman and managing director, RIL, said, "The record net profit for the quarter reflect benefits of our integrated oil-to-chemicals (O2C) value chain and the rapid scale-up of our consumer businesses. During this quarter, our O2C businesses gained from favourable fuel margins environment, feedstock sourcing flexibility and higher petrochemicals volumes."

With new partnerships, the O2C business is best placed to pursue growth and substantial value creation, he said. Saudi Aramco and RIL had earlier signed a non-binding letter of intent for a proposed investment in O2C division comprising refining, petrochemicals and fuel marketing businesses of RIL. Saudi Aramco's potential 20 per cent stake is based upon an enterprise value of $75 billion for the O2C division, said a RIL statement. This would be one of the largest foreign investments ever made in India.

Alongside, BP and RIL agreed to form a new joint venture that will include a retail service station network and aviation fuels business across India. RIL will get approximately Rs 7,000 crore from BP's investment in this joint venture.

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