RIL Q4 Results 2018: Mukesh Ambani’s Reliance Industries on Friday reported a 17.3% jump in its fourth-quarter net profit year-on-year at Rs 9,435 crore, beating street estimates by a tiny margin.
RIL Q4 Results 2018: Mukesh Ambani’s Reliance Industries on Friday reported a 17.3% year-on-year jump in its fourth-quarter net profit to an all-time quarterly high of Rs 9,435 crore, helped by a substantial contribution from its new telecom venture Jio Infocomm. The net profit beat a Bloomberg estimate of Rs 9,347 crore.
The company’s consolidated revenue for Q4FY18 at Rs 1,29,120 crore grew 39% on-year from Rs 92,889 crore reported in the same quarter last year, as recently commissioned petrochemicals plants poured in money for the giant. However, on the refining business side, RIL’s GRM at $11/bbl, which fell from $11.5/bbl on-year, seem to have disappointed as it was lower than estimated by TV news channel polls.
RIL said that the increase in revenue is primarily on account of volume increase with start-up of petrochemicals projects and oil price related increase in realizations for refining and petrochemical products. The growth in revenue also reflects robust growth of 134% in retail business and continuing growth momentum in wireless subscriber additions for digital services business, the company said. On the other hand, lower crude throughput in its refining business and lower output from its oil and gas exploration fields offset the strong performance of petrochemicals, retail and digital services businesses, it said.
RIL’s Chairman and Managing Director Mukesh Ambani sought to assure stakeholders that the company’s investments in building its retail and telecom distribution networks are coming to bear fruit. “We have established strong foundations in retailing and digital services business with world-class supply chain management and network infrastructure which will serve our customers well,” Mukesh Ambani said.
Consolidated Net Profit
RIL’s net profit in the fourth quarter of the fiscal year 2017-18 was Rs 9,435 crore vs Rs 8,046 crore, up 17% on-year.
Mukesh Ambani-led conglomerated reported a consolidated revenue of Rs 129,120 crore vs Rs 92,889, up 39% on-year.
RIL’s PBDIT in the fourth quarter was Rs 20,664 crore vs Rs 14,164 crore, up 45.9% on-year
Gross Refining Margin (GRM)
The company’s Gross Refining Margin (GRM) in the fourth quarter was $11/bbl vs $11.5/bbl on-year
Refining and Marketing Business
- The business reported a revenue of Rs 93,519 crore vs Rs 72,045 crore, up 28.9% on-year primarily on account of higher crude prices during the year.
- The business’ EBIT was Rs 5,607 crore vs Rs 6,294 crore, down 10.9% on-year.
- The Petrochemical business reported a revenue of Rs 38,113 crore vs Rs 26,478 crore, up 43.9% on-year primarily due to higher volumes from new Paraxylene, ROGC and it’s downstream units.
- The business’ EBIT was Rs 6,435 crore vs Rs 3,441 crore, up 87% on-year.
Oil and Gas (Exploration and Production Business)
- The business reported a revenue of Rs 746 crore vs Rs 1,309 crore, down 43.0% on-year as volumes from conventional fields and US shale was lower on account of the natural decline and slowdown in development activity.
Reliance Industries share price crossed the Rs 1,000 mark in the early trade on Friday ahead of the fourth quarter earnings report.