Wednesday, 12 December, 2018

Reliance Retail Q3 pre-tax profit soars 82% at Rs606 crore

Reliance Retail Q3 pre-tax profit soars 82% at Rs606 crore Reliance Retail Q3 pre-tax profit soars 82% at Rs606 crore
Sherri Watson | 20 January, 2018, 05:44

Oil-retail-to-telecom major Reliance Industries has reported consolidated profit growth of 16.2 percent quarter-on-quarter at Rs 9,423 crore, driven by petrochemical and Jio businesses. Q3FY18 net profit also grew by 2.28% as against Rs 8,265 crore in the preceding quarter. Operational revenue for the third quarter was Rs 6879 crore.

The quarter also saw Reliance post record consolidated pre-tax profit of Rs 13,789 crore, up 44.8 per cent from past year, and highest ever standalone profit of Rs 8,454 crore, up 5 per cent over the previous fiscal. Jio has grown rapidly since its commercial launch in September 2016.

"Jio's strong financial result reflects the fundamental strength of the business, significant efficiencies and right strategic initiatives". Bharti Airtel, the country's largest telecom operator, yesterday reported its seventh straight quarterly decline in net profit.

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.

"Our refining business has delivered 12 consecutive quarter of double-digit refining margins, demonstrating operating excellence and healthy industry fundamentals", he said.

The profits were mainly led by the growth in average revenue per user to Rs 154 per subscriber per month.

"Our commitment is to keep pushing newer innovative products which would radically transform customer lives and generate huge societal value", said Mukesh D Ambani, chairman and managing director of Reliance Industries (RIL). Refining margin, or the money it makes from producing fuels from each barrel of crude oil, rose to $11.6 in the quarter from $10.8 a year ago. However, its interconnect charges less than halved to Rs 1,082 crore after the regulator reduced the fee by 57% to 6 paise a minute from 14 paise in October 2017.

Its subscriber base, as of December 2017, was 160.1 million, with average revenue per user - a key metric for telecom companies - reported at ₹154 per month. "Jio has demonstrated that it can sustain its strong financial performance", Mukesh Ambani said in a released statement.

RIL attributed the growth in its earnings to higher volumes in its petrochemicals business with new capacity coming on stream post the expansion project, increase in prices across the petrochemicals and refining business and higher revenues from the retail and telecom business.

The refinery segment contributed ₹75,865 crore to the topline and ₹6,165 crore to profit before interest and taxes (EBIT), while petrochemicals contributed ₹33,726 crore to the topline and ₹5,753 crore to EBIT.