Reliance Industries posts record quarterly profit at Rs 9,459 crore

By: | Published: July 28, 2018 4:12 AM

Reliance Industries (RIL) on Friday posted a record quarterly profit for the April-June quarter of 2019 at `9,459 crore — a jump of 17.9% compared to the same period a year ago.

reliance, reliance industriesPetrochemicals segment ebit was at a record level of Rs 7,857 crore (.1 billion) supported by a strong y-o-y volume growth, RIL indicated.

Reliance Industries (RIL) on Friday posted a record quarterly profit for the April-June quarter of 2019 at `9,459 crore — a jump of 17.9% compared to the same period a year ago.

Revenue from operations (net of excise duty) rose 54.25% to Rs 1,28,756 crore on a y-o-y basis primarily on account of higher realisations of refining and petrochemical products due to increase in brent price as well as higher volumes due to start-up and stabilisation of petrochemical projects.

Although the revenue beat estimates of Rs 1,26,874 crore, net profit came a tad lower than Bloomberg consensus estimates of rs 9,554 crore. Net income excludes exceptional item of `1,087 crore representing profit from divestment of stake in Gulf Africa Petroleum Corporation.

The first-quarter gross refining margins (GRMs) came in lower at $10.5/barrel (bbl) against $11.9/bbl a year ago. During Q1FY19, the benchmark Singapore complex margin averaged $6/bbl compared to $7/bbl in Q4 FY18 and $6.4/bbl in Q1FY18. “Lower light distillate and weak fuel oil cracks led to a q-o-q decline in benchmark margins. Middle distillate cracks were stable on a q-o-q basis,” RIL said in its statement.
Chairman and MD Mukesh Ambani said RIL’s petrochemicals business generated a record ebitda with strong volumes and an upswing in polyester chain margins. “Refining business performance remained steady despite the seasonal weakness in cracks. Continuing strength in global demand for oil products and implementation of more stringent environmental norms for marine fuels augurs well for our refining business,” he said.

The refining and marketing business, which is a major contributor to the overall revenue, delivered a 42.9% jump in segment revenue at `95,646 crore compared to the year ago. However, the segment ebit saw a 16.8% drop to Rs 5,315 crore owing to a lower crude throughput due to a planned turnaround of a crude distillation unit and softer refining margins as well. RIL pointed out that the refining and marketing business performance was also impacted by higher flat price and adverse movement in Brent-Dubai differentials on a y-o-y basis.

Joint CFO Srikanth Venkatachari said GRM has been a little lower this time, more on the back of light distillates being weaker but asserted that the company does not expect too much fluctuation going ahead.
The company’s petrochemical business witnessed its segment revenue rise by 58.2% y-o-y to `40,287 crore due to a 35% increase in volumes and about 24% higher realisations.

Petrochemicals segment ebit was at a record level of Rs 7,857 crore ($1.1 billion) supported by a strong y-o-y volume growth, RIL indicated.

“We are expecting demand for oil in 2018 to be in line with about 1.4 million barrels/day growth. Demand for oil is not going down and refining capacity utilisation is very high. We don’t expect too much of impact,” he said.

The organised retail business segment saw a 123.7% rise in its segment revenue to `25,890 crore. The segment ebit saw an increase of 266.1% to Rs 1,069 crore.

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