Reliance Industries rose 0.94% to Rs 1428.55 after consolidated net profit rose 18.35% to Rs 11262 crore on 3.63% rise in net sales to Rs 148526 crore in Q2 September 2019 over Q2 September 2018.The result was announced after market hours on Friday, 18 October 2019. Meanwhile, the S&P BSE Sensex was up 31 points or 0.08% to 39329.02.
Reliance Industries (RIL) said increase in Q2 revenue was primarily on account of robust growth in retail & digital services businesses. This was partially offset by decrease in refining and petrochemicals segment revenue with 17.7% fall in Brent crude price.
Revenue from the refining and marketing segment decreased by 1.6% to Rs 97,229 crore in Q2 September 2019 over Q2 September 2018, reflecting lower crude prices.
Revenue from the petrochemicals segment decreased by 11.9% to Rs 38,538 crore in Q2 September 2019 over Q2 September 2018, reflecting fall in prices of petrochemical products.
The company reported gross refining margin at $9.4 a barrel in Q2 September 2019, as against $8.1 a barrel in Q1 June 2019 and $9.5 a barrel in Q2 September 2018. RIL GRM continued to outperform Singapore GRM. Delta narrowed mainly due to stronger fuel oil crack benefiting Singapore GRM and lower availability of heavy grades resulting in higher crude cost.
During Q2 September 2019, the benchmark Singapore Complex Margin averaged $6.5/bbl as compared to $3.5/bbl in 1 June 2019 and $6.1/bbl in Q2 September 2018.
RIL's telecom business, Jio Infocomm, reported 11.1% rise in net profit to Rs 990 crore on 5.8% increase in operating revenue to Rs 12,354 crore in Q2 September 2019 over Q1 June 2019.
Subscriber base increased 7.2% to 355.2 million in Q2 September 2019 over Q1 June 2019.
The average revenue per user (ARPU) in Q2 September 2019 stood at Rs 120 against Rs 122 in Q1 June 2019 and Rs 131.7 in Q2 September 2018. ARPU was impacted by subscriber mix and shift to long-term value packs, in line with recent trends.
Monthly average data usage per user rose to 11.7 GB in Q2 September 2019 from 11.4 GB in Q1 June 2019 but voice consumption per user fell to 789 minutes per month in Q2 September 2019 from 821 minutes in Q1 June 2019.
Reliance Retail's revenue for September quarter grew by 27% to Rs 41,202 crore with strong growth across formats despite consumption slowdown as against Rs 32,436 crore in the corresponding period of the previous year. Segment EBITDA rose 67% to Rs 2,322 crore in Q2 September 2019 over Q2 September 2018. Net profit increased by 55.8% to Rs 1,148 crore in Q2 September 2019 over Q2 September 2018. During the quarter, Reliance Retail added 337 stores taking the total store count to 10,901 stores, with area under operations of 24.5 mn.sq.ft.
Outstanding debt as on 30 September 2019 was Rs 291,982 crore compared to Rs 287,505 crore as on 31 March 2019.
Cash and cash equivalents as on 30 September 2019 were at Rs 134,746 crore compared to Rs 133,027 crore as on 31 March 2019.
The capital expenditure for the quarter ended 30 September 2019 was Rs 19,095 crore including exchange rate difference.
RIL's chairman and managing director, Mukesh D. Ambani, said, "The company has reported record net profit for the quarter. These excellent results reflect benefits of our integrated Oil to Chemicals (O2C) value chain and the rapid scale-up of our consumer businesses. During this quarter, our O2C businesses gained from favourable fuel margins environment, feedstock sourcing flexibility and higher petrochemicals volumes. Our O2C business, with new partnerships, is best placed to pursue growth and substantial value creation.
Continuing growth trends in our retail business is heartening. Guided by our obsession to provide the best value for our customers, Reliance Retail delivered robust performance with record quarterly revenues and EBITDA.
Our digital services business is recognized for having the nation's widest 4G wireless network. As an outcome of our team's relentless efforts, Jio has become India's largest mobility services provider. Jio today also has the highest market share in terms of 4G subscriber base and 4G data traffic in India. We are now executing yet another game changing initiative with the largest ever roll out of broadband services to home and enterprises through JioFiber. As always, we are committed to bring to Indian consumers more world-class products and services and providing them unique value propositions through innovation and technology."
On the BSE, 73,114 shares were traded in the RIL counter so far compared with average daily volumes of 3.41 lakh shares in the past two weeks. The stock hit a high of Rs 1437.65 and a low of Rs 1420.65 so far during the day.
The stock hit a 52-week high of Rs 1437.65 on 22 Oct 2019. The stock hit a 52-week low of Rs 1017 on 25 Oct 2018.
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