Reliance Industries Q2 Profit Rises 12.5%, Jio Loss At Rs 271 Crore

Standalone net profit is likely to increase to Rs8,687.5 crore on a revenue of Rs66,088 crore for the July September quarter according to a Bloomberg poll

Average revenue per user (ARPU), a key performance indicator, stood at Rs 156.4 for the telco, while the new entrant said it had positive earnings before interest and tax (EBIT) and earnings before interest, tax, depreciation and amortisation (EBITDA) in the very first quarter of operations.

Gross refining margins (GRMs) came in at $12 per barrel.

The company refined around 18.1 Million Tonnes (MT) crude in the second quarter and witnessed its revenue from the refining and marketing business grow 15.3 per cent to Rs 69,766 crore on the back of higher volumes and improved fuel cracks as compared to the corresponding quarter a year ago.

Ambani added on RIL's performance, "The results also reflect strong underlying fundamentals of our refining and petrochemicals businesses". "The strong financial results of Jio demonstrates the robust business model of Jio and the significant efficiencies that the Company has built through its investment in the latest 4G technology and right business strategy", Mukesh Ambani said in the statement.

Revenue from the refining and marketing segment during the July-September quarter at Rs 69,766 crore increased 15.3 per cent over the same quarter a year ago. Revenues rose 13.5 percent year-on-year to Rs 1,503 crore and operating losses narrowed to Rs 272 crore compared to Rs 491 crore a year earlier.

"Positive EBIT in the first quarter of commercial operations, given tremendous uptake by subscribers and cost advantages generated through use of efficient 4G technology", the company said.

The Net loss for the quarter came in at Rs.150.6 crore vs net loss of Rs. 116.3 crore in corresponding quarter past year. RIL's telecom arm Reliance Jio logged a net loss of Rs 270.6 crore, beating street estimates. Its shares have rallied 62 per cent this year.

The company's revenue increased by 23.9 per cent to Rs 101,169 crore for the same period, the company said in a statement. Sustained demand growth coupled with supply disruptions further tightened demand-supply balances globally during the quarter. The profit earned in this quarter is the highest ever for the conglomerate. Since commencement of services on September 5, 2016, Jio has been aggressive with its pricing tariffs, to cross 100 million subscribers in 170 days, adding 6 lakh subscribers per day at an average.

During the second quarter, revenue from the petrochemicals segment increased by 24.9 per cent year-on-year to Rs 27,999 crore due to higher volumes in the polyester chain and firm prices.

RIL's net debt as on September 30 stood at Rs 214,145 crore; and the company had cash and cash equivalents to the tune of Rs 77,014 crore.

Reliance Industries shares closed 0.42 per cent higher at Rs 876.45 on NSE on Friday after touching a record high of Rs 890.70 during intraday trade.

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