RIL Q3 net up 25% at Rs 9,423 cr; Jio turns profitable for first time
21 January, 2018
Oil-to-telecom giant Reliance Industries (RIL) on Friday reported its highest quarterly net profit of Rs 9,423 crore on record earnings from petrochemical business and telecom unit Jio logging its first ever profit. The consolidated net profit of Rs 9,423 crore, or Rs 16 per share, in October-December was 25.1 per cent higher than Rs 7,533 crore, or Rs 12.8 a share, in the same quarter of last fiscal, according to the company statement.
RIL Chairman Mukesh Ambani said record-setting consolidated quarterly earnings marks the culmination of petrochemical expansion projects and the first positive net profit contribution from newest business line –- digital services under the Jio brand.
“Our refining business has delivered 12 consecutive quarter of double-digit refining margins, demonstrating operating excellence and healthy industry fundamentals,” he said.
Jio, which with 160.1 million subscribers is the world's largest and fastest growing mobile data network, turned positive in only the second quarter of commercial operations, logging a net profit of Rs 504 crore, it said.
Reliance Jio Infocomm Ltd, or Jio, disrupted the telecom industry with free voice and cut-price data in September 2016. Jio, which started commercial operations in second quarter with a loss of Rs 271 crore, has been blamed for falling profits of industry peers. Bharti Airtel, the country’s largest telecom operator, on Thursday reported its seventh straight quarterly decline in net profit.
Reliance said pre-tax profit from petrochemical business, where all expansion projects have been completed, was at record high of Rs 5,753 crore in the third quarter of the current fiscal.
The owner of world's largest refining complex 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 the current fiscal. Profit from the refining and marketing business was marginally down at Rs 6,165 crore as compared to Rs 6,194 crore in Q3 of last fiscal.
In comparison to the previous quarter (July-September), the segment profit was down 7 per cent. While its oil and gas business logged a loss of Rs 291 crore, Reliance said its retail business was the fastest growing in the country, with revenue and pre-tax earnings more than doubling to Rs 18,798 crore and Rs 487 crore, respectively. Retail business is however yet to make its first net profit.
Also, benefits of the large investments in petrochemical business are beginning to show with the segment reporting its highest ever earnings, he added.