The Indian Express (Delhi Edition)
RIL standalone Q3 net profit rises 10% to `8,022 crore
Retail revenue rises 47.2%; Reliance Jio to mobilise `30,000 crore via preference share rights issue
RELIANCE INDUSTRIES has reported a higher-than-expected 10 per cent increase in standalone net profit at Rs 8,022 crore during the third quarter ended December as against Rs 7,296 crore in the same period of last year despite a fall in refining margins.
However, the company showed a 3.6 per cent rise in consolidated net profit at Rs 7,506 crore in the quarter as against Rs 7,245 crore in the same period a year ago. The company’s standalone turnover rose 9 per cent to Rs 66,606 crore from Rs 61,125 crore in Q3 of last year and consolidated turnover was up 16.1 per cent at Rs 84,189 crore as against Rs 72,513 crore a year ago.
RIL earned a gross refining margin of $10.8 on turning every barrel of crude oil into fuel as compared to $11.5 per barrel in the third quarter of 2015-16. However, it said RIL’S GRM outperformed Singapore complex margins by $4.1 per barrel.
RIL chairman and managing director Mukesh D Ambani said, “Our robust integrated platform, sound operational processes and business portfolio aligned to the needs of emerging India enabled us to deliver another record performance in challenging market conditions. The refining business has delivered eight consecutive quarters of double-digit GRMS, benefiting from the global demand for transportation fuels and improved product cracks.”
“We successfully commissioned the first phase of paraxylene plant during the quarter, further deepening the linkage between our refining and petrochemicals operations. Our growth strategy focuses on creating sustainable returns for our shareholders through value-enhancing, high-return projects. We are executing well on our projects under construction and remain confident on delivering on our growth plans,” Ambani said. RIL’S Jamnagar refineries processed 17.8 million metric tonnes (MMT) in the third quarter of 2017, marginally lower on a quarter-on-quarter basis.
On its telecom services, RIL said, “Jio continues its rapid ramp up of subscriber base and as of December 2016, in less than 4 months from commencement of services, there were 72.4 million subscribers on the network. The board of directors of the company has decided to make a rights issue of 6 billion 9 per cent non-cumulative optionally convertible preference shares (OCPS) of Rs 10 each for cash, at a premium of Rs 40 per OCPS, aggregating to Rs 30,000 crore, RIL said.
“I am also delighted by our country’s eagerness to adopt to a digital life as witnessed by the record-breaking launch of Jio. Its comprehensive ecosystem has enabled millions of Indians to lead a richer life through its offerings,” Ambani said.
On the retail business, RIL said revenues for the third quarter grew by 47.2 per cent to Rs 8,688 crore from Rs 5,901 crore in the same period a year ago. The increase in turnover was led by growth across all consumption baskets. The business delivered strong PBDIT (profit before depreciation, interest and tax) of Rs 333 crore in Q3 as against Rs 237 crore in the corresponding period of the previous year.