RIL Q1 net profit rises 18% to Rs 94 billion on petrochemical products

Mukesh Ambani-led Reliance Industries (RIL) has posted a 17.9 per cent increase in net profit for the first quarter of the financial year 2018-19 to Rs 94.59 billion, compared to Rs 80.21 billion during the same period last financial year.

The company's revenue for the quarter under review, too, zoomed 56.5 per cent to Rs 1.41 trillion against Rs 905.37 billion during the April-June quarter of the financial year 2017-18. The increase in revenue is mainly on the account of higher realisations of refining and petrochemical products led by 49 per cent year-on-year increase in Brent oil price. The company said the increased revenues also reflected higher volumes with start-up and stabilisation of petrochemicals projects.

"Financial results of Q1 FY19 underscore the strength of the petrochemicals we have reinforced over the last investment cycle. Our petrochemicals business generated 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," said Mukesh Ambani, chairman and managing director of RIL.  Reliance Retail recorded a sharp 124 per cent increase in revenue to Rs 258.9 billion and digital services business contributed Rs 96.53 billion for the quarter.

Jio has continued its strong subscriber growth trend with net addition during the quarter of 28.7 million (as against 26.5 million in the previous quarter), highest in any quarter since the launch of commercial services. Jio has also posted a standalone net profit of Rs 6.12 billion.

Exports (including deemed exports) from RIL's India operations were higher by 41.5 per cent at Rs 525.01 billion as against Rs 371.11 billion in the corresponding period of the previous year due to higher volumes and product prices in petrochemical business and higher realisation in refining business.

Other expenditure, too, increased by 46.6 per cent to Rs 151.43 billion as against Rs 103.32 billion in the corresponding period of the previous year, primarily due to network expenses, access and regulatory charges pertaining to digital services business and higher power and fuel expenses.

Operating profit before other income and depreciation increased by 64.6 per cent to Rs 206.61 billion from Rs 125.54 billion in the corresponding period of the previous year. Record operating performance was led by 33 per cent volume growth and a significant margin improvement in petrochemicals business.