1. Reliance Industries profit surges 10% to Rs 8,022 cr, beats estimates

Reliance Industries profit surges 10% to Rs 8,022 cr, beats estimates

Reliance Industries (RIL) on Monday beat estimates by reporting a 10% year-on-year jump in its standalone net profit to R8,022 crore during the October-December quarter.

By: | Mumbai | Published: January 17, 2017 6:37 AM
In terms of various business segments, while the company saw its petrochemicals revenue jump by 20.3% on an annualised basis to R21,690 crore, the much larger refining segment saw a relatively muted revenue growth of 7.4% (y-o-y) at R53,215 crore. (Reuters) In terms of various business segments, while the company saw its petrochemicals revenue jump by 20.3% on an annualised basis to R21,690 crore, the much larger refining segment saw a relatively muted revenue growth of 7.4% (y-o-y) at R53,215 crore. (Reuters)

Reliance Industries (RIL) on Monday beat estimates by reporting a 10% year-on-year jump in its standalone net profit to R8,022 crore during the October-December quarter. The company’s bottom line got boosted, despite a 90-basis-point (y-o-y) contraction in earnings before interest, taxes, depreciation and amortisation margin to 15.9%, on the back of a 9% jump in revenue to R66,606 crore and a 32.6% jump in other income at R3,025 crore..

In terms of various business segments, while the company saw its petrochemicals revenue jump by 20.3% on an annualised basis to R21,690 crore, the much larger refining segment saw a relatively muted revenue growth of 7.4% (y-o-y) at R53,215 crore.

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On the profit before income and tax margin front, while the petrochemicals segment saw a 120-bps expansion to 15.5%, the refining segment saw a contraction of 130 bps to 11.5% as gross refining margins (GRMs) — the difference in value of the output (petroleum product) and the input (crude oil) — slipped to $10.80 per barrel from $11.50 a barrel during the period.

Shrikanth Venkatachari, RIL’s joint CFO, however, said that while its GRMs contracted, the same was $4.10 a barrel higher than the benchmark Singapore complex.

Venkatachari attributed the marginal 0.2-million-tonne drop in the volume of crude oil refined to the temporary shut down of the fluid catalytic cracking unit at its Jamnagar refinery due to a fire in November. and added that Q3FY17 was the eighth consecutive quarter in which RIL has reported double-digit GRMs.

At the consolidated level, while RIL’s revenue grew by a healthier 16.1% (y-o-y) to R84,819 crore, its bottom line growth was muted at just 3.6% growth y-o-y to R7,506 crore. The highlight was an impressive 47.2% y-o-y growth in revenue of its organised retail segment to R8,688 crore. On Jio, RIL said that the company had 72.4 million subscribers as of December 31 and alleged that due to lower points of interconnection provisions, call failures from its network to those of Bharti Airtel’s continue to be over 30 times more than what is mandated by the regulator.

The company also reported that its net debt had risen to R1.18 lakh crore as of December 31 primarily due to R14,000 crore spent on buying spectrum.

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Shrikanth Venkatachari, RIL’s joint CFO, however, said that while its GRMs contracted, the same was $4.10 a barrel higher than the benchmark Singapore complex.

Venkatachari attributed the marginal 0.2-million-tonne drop in the volume of crude oil refined to the temporary shut down of the fluid catalytic cracking unit at its Jamnagar refinery due to a fire in November. and added that Q3FY17 was the eighth consecutive quarter in which RIL has reported double-digit GRMs.

 

At the consolidated level, while RIL’s revenue grew by a healthier 16.1% (y-o-y) to R84,819 crore, its bottom line growth was muted at just 3.6% growth y-o-y to R7,506 crore. The highlight was an impressive 47.2% y-o-y growth in revenue of its organised retail segment to R8,688 crore. On Jio, RIL said that the company had 72.4 million subscribers as of December 31 and alleged that due to lower points of interconnection provisions, call failures from its network to those of Bharti Airtel’s continue to be over 30 times more than what is mandated by the regulator.

The company also reported that its net debt had risen to R1.18 lakh crore as of December 31 primarily due to R14,000 crore spent on buying spectrum.

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