Reliance Industries on Friday reported a 25 percent jump in its third-quarter net profit on the back of higher refining margins and its telecom arm Jio
logging profit in its second quarter of operations. Consolidated net profit in October-December stood at Rs 9,423 crore while standalone earning was up 5.4 percent at Rs 8,454 crore, the company said in a stock exchange filing. The firm earned $11.6 on turning every barrel of crude oil into fuel in the quarter. Into its second quarter of commercial operations, Jio posted a 12 percent rise in the revenues in October-December when compared to the previous quarter. EBITDA jumped 82.1 percent quarter-on-quarter to Rs 2,628 crore and the net profit stood at Rs 504 crore. RIL’s EBIDTA stood at Rs 13,744 crore in Q3 FY17. Gross refining margins (GRMs) for the country’s largest integrated oil and gas major were at $11.6 per barrel against $12 per barrel a barrel in Q2FY17. The company announced its earnings after market hours.
Commenting on the results, Mukesh Ambani, Chairman and Managing Director, Reliance Industries Limited said: “I am happy to share record-setting consolidated quarterly earnings to mark the 40th anniversary of Reliance’s listing in January 1978. Fittingly, this quarter marks the culmination of our petrochemical expansion projects and the first positive net profit contribution from our newest business line – Digital Services. Our refining business has delivered 12 consecutive quarter of double-digit refining margins, demonstrating operating excellence and healthy industry fundamentals. Benefits of the large investments in petrochemical business are beginning to show with the segment reporting its highest
ever earnings. I would like to thank all our customers for partnering with us in this revolution which has made India a global digital powerhouse. I congratulate all our employees and partners for the strong performance. Our commitment is to keep pushing newer innovative products which would radically transform customer lives and generate huge societal value. Jio’s strong financial result reflects the fundamental strength of the business, significant efficiencies and right strategic initiatives. Jio has demonstrated that it can sustain its strong financial performance. We are excited about the prospects of both our energy and consumer businesses due to strong growth in Indian markets and constructive macro environment.”
Total wireless data traffic during the quarter stood at 431 crore GB while total voice traffic during the quarter was 31,113 crore minutes.
Other key figures
1)PBDIT increased by 39.4% to ` 19,845 crore ($ 3.1 billion)
2) Profit Before Tax increased by 29.1% to ` 13,220 crore ($ 2.1 billion)
3)Cash Profit increased by 42.6% to ` 15,116 crore ($ 2.4 billion)
In a Bloomberg poll, nine analysts had estimated the company’s consolidated profit at Rs 84.96 billion against Rs 81.09 billion and seven analysts estimated revenue of Rs 1.02 trillion against revenue of Rs 914.81 billion reported in the same quarter a year back. At a standalone level, nine analysts expect revenue at Rs 851.11 billion and 10 analysts expect net income at Rs 85.46 billion. The company is expected to continue with its double-digit trend for its gross refining margins (GRMs). Analysts expect GRM for the company to be in the range of $11.1 to $11.8 a barrel, lower from $12 per barrel reported in the September quarter.
Reliance Industries Limited (RIL) is an Indian conglomerate holding company headquartered in Mumbai, Maharashtra, India. Reliance owns businesses across India engaged in energy, petrochemicals, textiles, natural resources, retail, and telecommunications. Reliance is the most profitable company in India, the largest publicly traded company in India by market capitalization.