RIL advances after decent Q1 results

Reliance Industries rose 0.66% to Rs 1,257.30 at 9:27 IST on BSE after the company's consolidated net profit rose 6.8% to Rs 10,104 crore on a 21.9% surge in net sales to Rs 1,56,976 crore in Q1 July 2019 over Q1 July 2018.

The announcement was made after market hours on Friday, 19 July 2019.

Meanwhile, S&P BSE Sensex was down 297.16 points or 0.78% at 38,039.85.

On BSE, 53,000 shares were traded in Reliance Industries counter, compared to a 2-week average of 3.23 lakh shares. The share price hit an intraday high of Rs 1,265.80 and an intraday low of Rs 1,227.60. It hit a 52-week high of Rs 1,417 on 3 May 2019 and a 52-week low of Rs 1,017 on 25 October 2018.

Reliance Industries' consolidated revenue jumped 22.1% to Rs 1,72,956 crore in Q1 July 2019 over Q1 July 2018. The firm's consolidated PBDIT increased by 9.1% to Rs 24,486 crore on a y-o-y basis. The Earnings Per Share (EPS) also moved up by 6.8% to Rs 17.10 in Q1 July 2019 over Q1 July 2018.

The company's telecom arm Reliance Jio reported profit for the seventh quarter in a row. For the June quarter, the firm reported a profit of Rs 891 crore, up 45.6% from year ago. There was strong momentum continuing in the subscriber additions with gross additions of 33.8 million and net addition of 24.5 million. Jio had 331.3 million subscribers as of Jun 2019.

Despite the larger consumer base across tariff plans, customer engagement improved with higher data usage of 11.4 GB per user per month. VoLTE voice consumption per subscriber came in at 821 minutes per month.

Average revenue per user (ARPU) came in at Rs 122 per month in Q1 June 2019 compared with Rs 126.2 per month in Q4 March 2019 and Rs 134.5 per month in Q1 June 2018. ARPU was impacted by subscriber mix, shift to long-term value packs and higher digital recharges (cashbacks).

The firm entered into an agreement with Brookfield Infrastructure Partners L.P. and its affiliates for an investment of Rs 25,215 crore into Tower InvIT. Proceeds from the investment by Brookfield and long-term loans will be used to repay existing financial liabilities of RJIPL, including loans extended by Reliance.

RIL's retail arm revenue grew 48% to Rs 38,196 crore. Segment Ebitda grew 70% to Rs 2,049 crore on a yearly basis. Reliance Retail operated 10,644 stores across over 6,700 towns and cities, with an area of 23 million square feet.

RIL's exploration and production business segment revenue decreased 35.5% to Rs 923 crore. Segment EBIT came in at a loss of Rs 249 crore against a loss of Rs 447 crore in the corresponding period of the previous year. The segment performance continued to be impacted by declining volume

RIL's gross refining margin (GRM) came in at $8.1 per barrel. Revenue from the petrochemicals segment stood at Rs 37,611 crore for the June quarter, a dip of 6.64% when compared to Rs 40,287 crore posted in the same quarter last year.

Outstanding debt as on 30 June 2019 was Rs 288,243 crore compared to Rs 287,505 crorea on 31 March 2019. Cash, cash equivalents and marketable securities as on 30 June 2019 were at Rs 131,710 crore compared to Rs 133,027 crore as on 31 March 2019. These were in bank deposits, mutual funds, CDs, Government Bonds and other marketable securities.

Mukesh D. Ambani, the chairman and managing director of Reliance Industries, has said that, "Our first quarter earnings were strong despite weak global macroeconomic environment and challenging hydrocarbon market conditions. Our downstream businesses delivered resilient performance in an environment of slower demand growth and incremental supplies. The performance reflects the benefits of deep refining and petrochemicals integration, chain economics and feedstock flexibility. The company continues to make major strides in its retail and digital services businesses led by focus on growth markets with offerings in the right product segments and compelling value proposition. We are pleased with the robust growth both in revenues and operating income for Reliance Retail. Our digital services business continues to transform the mobility market in India while scaling newer milestones."

Reliance Industries retained its domestic credit ratings of CRISIL AAA/Stable from CRISIL, IND AAA/Stable from India Ratings, a Baa2 investment grade rating for its international debt from Moody's and BBB+ from S&P.

Reliance Industries is a Fortune 500 company and a large private sector corporation in India.

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