Reliance Industries Ltd’s fiscal fourth quarter net profit rose 12.3% on-year to Rs 8046 crore, as higher oil prices helped boost the company’s refining and petrochemical products prices and revenues, it said on Monday. India’s most profitable conglomerate’s turnover for the Jan-Mar quarter rose 45.2% on-year to Rs 92,889 crore, it said.
The financial results beat street expectations. An ET Now poll had estimated the net profit at Rs 8,021 crore and sales at Rs 67,221 crore.
“Increase in revenue is primarily on account of increase in prices of refining and petrochemical products on the back of higher oil prices,” Reliance Industries said in a statement, adding that the turnover was also boosted by robust growth in retail business.
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For the full fiscal year 2016-17, Reliance Industries reported highest ever net profit at Rs 29,901 crore, led by its refining and petrochemicals business, it said. “Refining and petrochemicals businesses achieved record levels of profitability, underpinned by our ability to access feedstock competitively from global markets, maintain high operating rates and place products in growth markets,” Reliance Industries Chairman Mukesh Ambani said in a statement. “With ongoing projects our portfolio will become significantly more robust and integrated, securing long-term profitable growth,” Ambani added.
As for the refining business, the company surprised on Gross Refining Margins front, reporting it at $11.5 per barrel of oil in the fiscal fourth quarter that ended March 31, up from $10.8/bbl in the same quarter a year ago. The refining and marketing business revenue rose about 50% to Rs 72,045 crore in Jan-Mar, the company said.
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Further, RIL’s revenue from the petrochemicals business, the second-largest contributor, rose 26.4% on-year in the fourth quarter to Rs 26,478 crore, with the EBIT (earning before interest and tax) for the segment rising 25.8% to Rs 3,441 crore.
However, the oil & gas exploration business revenue continued to fall on the account of lower upstream production and lower domestic gas price realisation, it said, referring to the year-on-year fall in gas output at its KG-D6 block. The segment revenue in Jan-Mar fell about 20% on-year to Rs 1,309 crore, with the segment loss at the EBIT level widening to Rs 486 crore from Rs 153 crore a year ago.
Organised retail segment continued to grow at a scorching pace, with the fiscal fourth quarter revenue rising 83% on-year to Rs 10,332 crore. “The increase in turnover was led by growth across all consumption baskets,” Reliance Industries said. “During the quarter, Reliance Retail added 63 stores across various store concepts,” it added.