RIL’s profit surges 25% in Q3; Jio logs profit for first time

Reliance Industries (RIL) on Friday reported a 25 per cent increase in net profit for the quarter ended December 2017 over the same period of the previous fiscal with Reliance Jio, the company’s digital arm, turning profitable for the first time since launching its operations.

RIL’s consolidated net profit for the quarter stood at `9,423 crore, up 25.1 per cent from `7,533 in Q3FY17 following a strong growth in petrochemical, retail and digital businesses. The company’s digital arm reported its first ever-quarterly profit of `503 crore with the average revenue per user (ARPU) at `154 per subscriber per month. It had reported a net loss of `271 crore during the quarter ended September 2017. Jio had a network base of 160.1 million subscribers at December end, the company said.

“This quarter marks the culmination of our petrochemical expansion projects and the first positive net profit contribution from our newest business line – Digital Services. Benefits of the large investments in petrochemical business are beginning to show with the segment reporting its highest ever earnings. Jio’s strong financial result reflects the fundamental strength of the business, significant efficiencies and right strategic initiatives. Jio has demonstrated that it can sustain its strong financial performance,” said Mukesh Ambani, chairman, RIL.

The company’s gross refining margin (GRM), the difference between the cost of a barrel of oil and value of all the products made out of it, stood at $11.6 per barrel as against $12 per barrel achieved in September 2017 and $10.8 per barrel reported in December 2016.

RIL’s shares soared 1.09 per cent on the BSE ahead of its quarterly numbers in anticipation of a strong growth.