RIL reports highest quarterly profit, Reliance Jio posts first-ever profit

New Delhi: Reliance Industries Ltd today reported its highest quarterly net profit of Rs 9,423 crore on record earnings from petrochemical business and telecom unit Reliance Jio logging its first-ever profit.

Consolidated net profit of Rs 9,423 crore, or Rs 16 per share, in the December quarter was 25.1% higher than Rs 7,533 crore, or Rs12.80 a share, in the same quarter of 2016-17, RIL said in a statement.

Reliance Jio, with 160.1 million subscribers, turned positive “in only the second quarter of commercial operations”, logging a net profit of Rs504 crore, RIL said. Reliance Jio has disrupted the telecom industry with free voice calls and cheap data since its launch in September 2016. The telecom start-up, which started commercial operations in Q2 FY18 with a loss of Rs271 crore, has been blamed for falling profits of industry peers.

According to Reliance Industries, pre-tax profit from petrochemical business, where all expansion projects have been completed, was at a record high of Rs5,753 crore in the December quarter. It earned $11.6 on turning every barrel of crude oil into fuel in October-December as against a gross refining margin (GRM) of $10.8 in the same period last year. The GRM was, however, lower than $12 recorded in the July-September quarter of 2017-18. Profit from the refining and marketing business was marginally down at Rs6,165 crore as compared to Rs6,194 crore in Q3 FY17. In comparison to the previous quarter (July-September), the segment profit was down 7%.

While its oil and gas business logged a loss of Rs291 crore, Reliance said its retail business was the fastest growing in the country, with revenue and pre-tax earnings more than doubling to Rs18,798 crore and Rs487 crore, respectively. Retail business is however yet to make its first net profit.

The record-setting consolidated quarterly earnings marks the culmination of petrochemical expansion projects and the first positive net profit contribution from Reliance Jio, said RIL chairman Mukesh Ambani. “Our refining business has delivered 12 consecutive quarter of double-digit refining margins, demonstrating operating excellence and healthy industry fundamentals,” he said.

Also, benefits of the large investments in petrochemical business are beginning to show with the segment reporting its highest-ever earnings, said Ambani. “Jio’s strong financial result reflects the fundamental strength of the business, significant efficiencies and right strategic initiatives.”

According to the Q3 results declared Friday, RIL’s revenue was up 30.5% at Rs109,905 crore. The company’s debt was marginally lower at Rs213,206 crore as on 31 December 2017 as compared to Rs214,145 crore at the end of previous year. Outstanding debt, as on 31 March 2017, was Rs196,601 crore. Cash in hand was also marginally higher at Rs78,617 crore as compared to Rs77,014 crore on 30 September 2017.

The quarter also saw Reliance post record consolidated pre-tax profit of Rs13,789 crore, up 44.8% from last year, and highest ever standalone profit of Rs8,454 crore, up 5% over the previous fiscal.

RIL Corporate Highlights for the Quarter (3Q FY2018)

– Reliance commissioned the world’s first ever and largest refinery off-gas cracker (ROGC) complex of 1.5 MMTPA capacity along with downstream plants and utilities at Jamnagar.

– Reliance priced a Rule 144A/Regulation S offering of US$ 800 million 3.667% Senior Unsecured Notes due 2027. It has the lowest coupon ever achieved by an Indian corporate and also the tightest ever spread over US Treasury for an Indian entity for a 10 year maturity

– Reliance Jio Infocomm Limited signed a definitive agreement for the acquisition of specified assets of Reliance Communications Limited (RCOM) and its affiliates.

– Reliance completed the sale of its interest in certain upstream assets, which were operated by Carrizo Oil & Gas, Inc to BKV Chelsea LLC, an affiliate of Kalnin Ventures.

Commenting on the results, Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries Limited said:

“I am happy to share record-setting consolidated quarterly earnings to mark the 40th anniversary of Reliance’s listing in January 1978. Fittingly, this quarter marks the culmination of our petrochemical expansion projects and the first positive net profit contribution from our newest business line – Digital Services.

Our refining business has delivered 12 consecutive quarter of double-digit refining margins, demonstrating operating excellence and healthy industry fundamentals. Benefits of the large investments in petrochemical business are beginning to show with the segment reporting its highest ever earnings.

I would like to thank all our customers for partnering with us in this revolution which has made India a global digital powerhouse. I congratulate all our employees and partners for the strong performance.

Our commitment is to keep pushing newer innovative products which would radically transform customer lives and generate huge societal value.

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.

We are excited about the prospects of both our energy and consumer businesses due to strong growth in Indian markets and constructive macro environment.”

Reliance Jio

Standalone revenue from operations of Rs 6,879 crore (11.9% over trailing quarter)

– Standalone EBITDA of Rs 2,628 crore (82.1% over trailing quarter) and EBITDA margin of 38.2% (trailing quarter at 23.5%)

– Standalone Net Profit of Rs 504 crore

– Subscriber base as on 31st Dec-17 of 160.1 million

-Gross subscriber addition of 27.8 million; net subscriber addition of 21.5 million

– ARPU of ` 154 per subscriber per month

– Total wireless data traffic of 431 crore GB (9.6 GB per subscriber per month)

– Total voice traffic of 31,113 crore minutes

– Video consumption has crossed 200 crore hours per month on the network (13.4 hours of video consumption per subscriber per month)

– Consolidated value of services of ` 8,136 crore (12.8% over trailing quarter) and consolidated EBIT of ` 1,441 crore (452.1% over trailing quarter)

Mukesh Ambani, Chairman and Managing Director, said: “I would like to thank all our customers for partnering with us in this revolution which has made India a global digital powerhouse. I congratulate all our employees and partners for the strong performance. Our commitment is to keep pushing newer
innovative products which would radically transform customer lives and generate huge societal value.

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.”