RIL chief Mukesh Ambani says refining and petrochemical products and retail helped boost June quarter revenue
Reliance Industries Limited, headquartered in Mumbai, owns businesses across India in areas such as energy, petrochemicals, textiles, natural resources, retail, and telecommunications.
In the reported quarter (Q1FY18), the company's standalone revenue increased by 18.4% to Rs 70,434 crore ($ 10.9 billion). PBDIT increased by 5.1% to Rs 13,507 crore ($ 2.1 billion). Profit Before Tax increased by 5.9% to Rs 10,561 crore ($ 1.6 billion).
During the same time frame, exports increased by 11.5% to Rs 37,111 crore ($ 5.7 billion).
On consolidated basis, RIL posted revenue of Rs 90,537 crore ($ 14.0 billion), up 26.7%, compared to Rs 71,451 crore in the corresponding period of the previous year.
The company said that the increase in revenue was primarily on account of increase in prices and volumes of refining and petrochemical products partially offset by lower prices and volumes from E&P business.
Retail business, which recorded a 73.6% increase in revenue to Rs 11,571 crore, also boosted revenue.
Brent crude oil price averaged $ 49.9/bbl in 1Q FY18 as compared to $ 45.6/bbl in the corresponding period of the previous year.
Strong refining and petrochemicals margin environment contributed to higher operating profits for the quarter.
Gross refining margins recorded nine-year-high of $ 11.9/bbl whereas petrochemicals EBIT margin were at all-time high of 15.8%.
Cost of raw materials increased by 17.7% to Rs 44,117 crore ($6.8 billion) from Rs 37,469 crore on Yo-Y
basis primarily on account of increase in crude prices and higher volume of crude processed.
Exports (including deemed exports) from India operations were up by 11.5% at Rs 37,111 crore ($5.7 billion) against Rs 33,282 crore in the corresponding period of the previous year.
Employee cost increased by 16.3% at Rs 2,455 crore ($ 380 million) as against Rs 2,111 crore in corresponding period of the previous year due to increased employee base and higher payouts.
Other expenditure increased by 20.2% to Rs 10,332 crore ($1.6 billion) as against Rs 8,598 crore in corresponding period of the previous year primarily due to increase in power and fuel expenses with new capacity commissioning and higher selling expenses on account of increase in exports.
Operating profit before other income and depreciation increased by 11.9% on a Y-o-Y basis to Rs 12,554 crore ($1.9 billion) from Rs 11,223 crore in the previous year.
Operating profit was led by robust performance from petrochemicals business and sustained strength in refining business. This was partially offset by losses in Oil & Gas business due to lower volumes and weak domestic price
Other income was lower at Rs 2,124 crore ($ 329 million) as against Rs 2,378 crore in corresponding period of the previous year due to lower investible surplus.
Depreciation (including depletion and amortization) was Rs 3,037 crore ($470 million) compared to Rs 2,725 crore in corresponding period of the previous year mainly on account of capitalisation of new projects in the petrochemicals business.
Said Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries Limited: “ Jio has revolutionised the Indian telecom and data consumption landscape. This digital services business has been built to address the entire value chain across the digital services domain with smart applications to make life simple, beautiful and secure."
Finance cost was at Rs 1,119 crore ($ 173 million) as against Rs 1,206 crore in the corresponding period of the previous year. The decrease was primarily on account of lower average exchange rate for the quarter.
Exceptional items during the quarter was Rs 1,087 crore ($ 168 million) representing profit from divestment of stake in Gulf Africa Petroleum Corporation (GAPCO).
Profit after tax including exceptional items was higher by 28.0% at Rs 9,108 crore ($1.4 billion) against Rs 7,113 crore in the corresponding period of the previous year.
Basic earnings per share (EPS) for the quarter ended June 30, 2017 was Rs 30.8 as against Rs 24.1 in the corresponding period of the previous year.
Outstanding debt as on June 30, 2017 was Rs 200,674 crore ($31.1 billion) compared to Rs 196,601 crore as on March 31, 2017.
Cash and cash equivalents as on June 30, 2017 were at Rs 72,107 crore ($11.2 billion) compared to Rs 77,226 crore as on March 31, 2017. These were in bank deposits, mutual funds, CDs and Government Bonds and other marketable securities.
The capital expenditure for the quarter ended June 30, 2017 was Rs 25,192 crore ($3.9 billion), including exchange rate difference capitalization. Capital expenditure was principally on account of ongoing projects in the petrochemicals and refining business at Jamnagar and Digital services business.
"Over the past 3-4 years, we made significant investments in new plants, thus creating organic growth platforms for our energy and materials businesses. Full commissioning of new PX facility at Jamnagar during the quarter will strengthen the integration within our polyester chain. Ramp-up of ethane import project has helped in diversifying feedstock sources and mitigating risks for our existing crackers at Dahej and Hazira. It is our constant endeavor to deliver world-class product and experience to Indian consumers through our retail and digital services businesses, which we believe are game changing initiatives," said Ambani.
Image: RIL Facebook