RIL June quarter profit increases 18% to ₹9,459 cr
MUMBAI: Billionaire Mukesh Ambani-controlled Reliance Industries Ltd (RIL) on Friday reported an 18% increase in its June quarter net profit at ₹9,459 crore, led by higher petrochemical and refining realisations.
Revenue at the energy-to-telecom conglomerate rose 56.5% to ₹1.4 trillion against ₹90,537 crore in the corresponding previous quarter.
According to a Bloomberg poll of nine brokers, RIL was expected to post consolidated net sales of ₹1.269 lakh crore for the quarter. A Bloomberg poll of 10 brokers estimated net profit of ₹9,554 crore. Gross refining margin, or what the company earns from turning every barrel of crude oil into fuel, came in at $10.5 per barrel. Analysts had expected RIL’s gross refining margin (GRM) to be in the range of $10-11 per barrel against the $11.9 per barrel it reported a year ago.
RIL is the operator of the world’s biggest oil-refinery complex with a refining capacity of 1.24 million barrels of oil per day at Jamnagar in Gujarat.
During the quarter, the Singapore Complex GRM was down 6% year-on-year to $6 per barrel against $6.4 per barrel in Q1FY18. Crude oil price, however, continued its upward trend in the AprilJune quarter. Average Brent crude price was up 48% year-onyear and 11% quarter-on-quarter to $74.5 per barrel.
For the June quarter, revenue from the petrochemicals segment increased 58.2% to ₹40,287 crore, backed by strong year-on-year volume growth.
“Petchem has ramped up fully and there will be no further volume increase,” said V Srikanth, joint chief financial officer, RIL during a press meet in Mumbai.
Srikanth added that contribution from the consumer business will continue to go up. During the quarter, earnings before interest and taxes (ebit) from the consumer business was at 21% against 13% last fiscal.
Its mobile telephony arm reported a profit of ₹612 crore for the June quarter, a 19.9% rise on a sequential basis, on the back of a revenue of ₹8,109 crore from its operations, the company said.
Reliance Jio had reported a net profit of ₹510 crore on the back of a revenue of ₹7,128 crore during the March quarter.