Increase in revenue is primarily on account of higher realisation for refining and petrochemical products with a 22% increase in average Brent crude price on a y-o-y basis, RIL said.
Reliance Industries (RIL) on Thursday posted a net profit of Rs 10,362 crore for the January-March quarter, a jump of 9.79% compared to the same period last year. For the full fiscal year, RIL reported a 13.1% rise in profit to Rs 39,588 crore.
Revenue from operations (net of excise duty) for the fourth quarter rose 18.6% to Rs 1.38 lakh crore on a year-on-year basis.
Although the fourth quarter revenue fell short of Bloomberg consensus estimates of `1.47 lakh crore, net profit beat the estimate of `9,796.50 crore.
On a full year basis, RIL reported a 44.79% rise in its net revenue (net of excise duty) at `5.67 lakh crore. “Increase in revenue is primarily on account of higher realisation for refining and petrochemical products with a 22% increase in average Brent crude price on a y-o-y basis. Higher volumes with stabilisation of new petrochemical facilities also contributed to revenue growth,” RIL said.
The Q4 gross refining margins (GRMs) came in at $8.2/barrel (bbl) against $11/bbl in the same period last year. During Q4FY19, the benchmark Singapore complex margin averaged $ 3.2/bbl as compared to $7/bbl in Q4 FY18.
RIL indicated that refining margins weakened primarily on account of lower light distillate cracks which offset higher middle distillates and fuel oil cracks.
Mukesh Ambani, chairman and managing director, said the company has delivered record consolidated net profit of `39,588 crore for the year in a period of heightened volatility in the energy markets. “I am delighted to highlight that our company has more than doubled its PBDIT in the last five years to `92,656 crore.”
The refining and marketing (R&M) business, which is a major contributor to the overall revenue, recorded a 6.1% fall in segment revenue at `87,844 crore in Q4 compared to the same period last year.
The segment EBIT saw a 25.5% drop to `4,176 crore in the fourth quarter. RIL pointed out that the R&M segment performance was impacted by lower crude throughput due to planned maintenance.
RIL’s petrochemical business witnessed its segment revenue rise by 11.3% year-on-year to `42,414 crore, mainly due to an increase in price realisations and volumes in PTA, PP and Paraxylene. Petrochemicals segment EBIT rose 23.9% on a year-on-year basis to `7,975 crore ($1.2 billion).
Petrochemical segment recorded a strong EBIT margin of 18.8%, aided by strength in PX margins.