MUMBAI, Jul 20: Oil-to-telecom major, Reliance Industries has reported a rise of 28.05 per cent in its consolidated net profit for the quarter ended June 30, 2017 at Rs 9,108 crore as compared to net profit of 7,113 for the same quarter a year ago.
A total income for the quarter under review increased by 25.51 percent to Rs 92,661 crore as compared with total income of 73,829 crore for quarter ended June 30, 2016.
Commenting on the results, Mukesh D. Ambani, Chairman and MD of Reliance Industries Limited said ”Our Company recorded yet another strong quarterly performance with net profit of Rs 9,108 crore, up 28 percent Year-on-Year. Our industry leading portfolio of assets in the refining and petrochemicals business contributed to considerable improvement in our earnings for the quarter. Retail business also witnessed accelerated growth momentum with Year-on-Year revenue growth of 74 percent. Jio has revolutionised the Indian telecom and data consumption landscape. This digital services business has been built to address the entire value chain across the digital services domain with smart applications to make life simple, beautiful and secure.
Over the last four decades, Reliance has continued to grow and evolve by creating value through building competitive global scale businesses and delivering increasing shareholder returns. Over the past 3-4 years, we made significant investments in new plants, thus creating organic growth platforms for our energy and materials businesses. Full commissioning of new PX facility at Jamnagar during the quarter will strengthen the integration within our polyester chain.
Ramp-up of ethane import project has helped in diversifying feedstock sources and mitigating risks for our existing crackers at Dahej and Hazira. It is our constant endeavor to deliver world-class product and experience to Indian consumers through our retail and digital services businesses, which we believe are game changing initiatives.
RIL achieved revenue of Rs 90,537 crore, an increase of 26.7 percent, as compared to Rs 71,451 crore in the corresponding period of the previous year. Increase in revenue is primarily on account of increase in prices and volumes of refining and petrochemical products partially offset by lower prices and volumes from E&P business. Revenue was also boosted by robust growth in retail business which recorded a 73.6 percent increase in revenue to Rs 11,571 crore.
Brent crude oil price averaged USd 49.9/bbl in 1Q FY18 as compared to USD 45.6/bbl in the corresponding period of the previous year.
Strong refining and petrochemicals margin environment contributed to higher operating profits for the quarter. Gross refining margins recorded nine-year-high of USd 11.9/bbl whereas petrochemicals EBIT margin were at all-time high of 15.8 percent. Cost of raw materials increased by 17.7 percent to Rs 44,117 crore from Rs 37,469 crore on Year-on-Year basis primarily on account of increase in crude prices and higher volume of crude processed.
Exports (including deemed exports) from India operations were higher by 11.5 percent at Rs 37,111 crore as against 33,282 crore in the corresponding period of the previous year. Employee cost increased by 16.3 percent at Rs 2,455 crore as against Rs 2,111 crore in corresponding period of the previous year due to increased employee base and higher payouts.
Other expenditure increased by 20.2 percent to Rs 10,332 crore as against Rs 8,598 crore in corresponding period of the previous year primarily due to increase in power & fuel expenses with new capacity commissioning and higher selling expenses on account of increase in exports. Operating profit before other income and depreciation increased by 11.9 percent on a Year-on-Year basis to Rs 12,554 crore from Rs 11,223 crore in the previous year.
Operating profit was led by robust performance from petrochemicals business and sustained strength in refining business. This was partially offset by losses in Oil & Gas business due to lower volumes and weak domestic price environment Other income was lower at Rs 2,124 crore as against Rs 2,378 crore in corresponding period of the previous year due to lower investible surplus.
Depreciation (including depletion and amortization) was Rs 3,037 crore as compared to Rs 2,725 crore in corresponding period of the previous year mainly on account of capitalisation of new projects in the petrochemicals business.
Finance cost was at Rs 1,119 crore as against Rs 1,206 crore in the corresponding period of the previous year. The decrease was primarily on account of lower average exchange rate for the quarter. Exceptional items during the quarter was Rs 1,087 crore representing profit from divestment of stake in Gulf Africa Petroleum Corporation (GAPCO).
Basic earnings per share (EPS) for the quarter ended 30th June 2017 was Rs 30.8 as against Rs 24.1 in the corresponding period of the previous year. Outstanding debt as on 30th June 2017 was Rs 200,674 crore compared to Rs 196,601 crore as on 31st March 2017. Cash and cash equivalents as on 30th June 2017 were at Rs 72,107 crore compared to Rs 77,226 crore as on 31st March 2017. These were in bank deposits, mutual funds, CDs and Government Bonds and other marketable securities. The capital expenditure for the quarter ended 30th June 2017 was ` Rs 25,192 crore including exchange rate difference capitalization. Capital expenditure was principally on account ofn ongoing projects in the petrochemicals and refining business at Jamnagar and Digital services business. (UNI)
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