Oil-retail-to-telecom conglomerate, Reliance Industries Ltd (RIL), on Thursday reported a 8.8 percent increase in its net profit to Rs 10,251 crore for the third quarter ended December 31, 2018 on account of refining, petrochemicals margins.
CNBC-TV18 Poll had predicted a profit of Rs 9,690 crore for the quarter under review.
The company had recorded a net profit of Rs 9,423 crore in the corresponding quarter of the previous financial year.
Its revenue rose by 56 percent to Rs 171,336 crore in the third quarter of the current financial year, the company said in a statement.
Increase in revenue is primarily on account of higher price realisations and volumes for petrochemical and refining businesses along with continuing strong growth momentum in consumer businesses, the company said.
Exports (including deemed exports) from RIL’s India operations were higher by 35.2 percent at Rs 62,378 crore as against Rs 46,151 crore in the corresponding period of the previous year due to higher volumes of polymer products and fibre intermediates on account of stabilisation of new facilities at Jamnagar and higher product prices in petrochemical and refining business.
Operating profit before other income and depreciation increased by 21.3 percent to Rs 21,317 crore from Rs 17,580 crore in the corresponding period of the previous year.
RIL said, "The growth in operating profit was led by strong operating performance in petrochemicals, retail and digital services businesses. Significant volume growth and margin improvement in key product categories boosted petrochemicals segment earnings. Superior product and value proposition in retail and digital services business is driving customer traction and profitability."
Depreciation (including depletion and amortization) was Rs 5,237 crore as compared to Rs 4,530 crore in corresponding period of the previous year. The increase was largely on account of RJIL’s Wireless Telecommunication Network.
Finance cost was at Rs 4,119 crore as against Rs 2,095 crore in corresponding period of the previous year. This increase is primarily on account of commencement of petrochemical projects at Jamnagar and digital services business. Higher loan balances also contributed to the increase in finance cost.
"In an oil price environment that witnessed heightened volatility through the quarter, RIL has delivered strong quarterly results on a consolidated basis. Competitive cost positions and integration benefits is core to our oil to chemicals (refining and petrochemicals) business, driving sustained performance even in challenging global business environment. In our new-age consumer businesses, we maintained robust growth momentum across retail and Jio platforms and the share of consumer businesses is steadily increasing its contribution to the overall profitability of the company," said Mukesh Ambani, chairman and managing director, RIL.Basic earnings per share (EPS) for the quarter ended December 31, 2018 was Rs 17.3 as against Rs 16.0 in the corresponding period of the previous year.
Outstanding debt as on December, 21, 2018 was Rs 274,381 crore compared to Rs 218,763 crore as on March 31, 2018.
Cash and cash equivalents as on December, 31, 2018 were at Rs 77,933 crore compared to Rs 78,063 crore as on March 31, 2018. These were in bank deposits, mutual funds, CDs, Government Bonds and other marketable securities.
The capital expenditure for the quarter ended 31st December, 2018 was Rs 27,274 crore including exchange rate difference.
Refining And Marketing Business:
3QFY19 revenue from the refining and marketing segment increased by 47.3 percent Y-o-Y to Rs 111,738 crore, while segment EBIT declined by 18.0 percent Y-o-Y to Rs 5,055 crore. R&M segment performance was impacted by sharp decline in light distillate product cracks on Y-o-Y basis. This was partly offset by strength in middle distillate cracks on Y-o-Y basis. RIL maintained significant premium over Singapore complex margins due to product yield optimization and robust risk management. GRM for 3QFY19 stood at $ 8.8/bbl, outperforming Singapore complex margins by $4.5/bbl.
3QFY19 revenue from the petrochemicals segment increased by 37.1 percent Y-o-Y to Rs 46,246 crore due to increase in price realizations and volumes primarily in polymer products and fibre intermediates. Petrochemicals segment EBIT was at Rs 8,221 crore, up 42.9 percent Y-o-Y. Strong volume growth and robust polyester chain margins offset the impact of weaker polymer margins. Y-o-Y volume growth was led by successful stabilization of the world’s largest ROGC, its downstream units and new PX facility at Jamnagar.
Oil and Gas (Exploration & Production) Business
3QFY19, revenue for the oil and gas segment decreased by 27.5 percent Y-o-Y to Rs 1,182 crore. Segment EBIT at Rs (185) crore as against Rs (291) crore in the corresponding period of the previous year. The segment performance continued to be impacted by declining volume. Domestic production was lower at 13.2 BCFe, down 33 percent Y-o-Y, whereas production in US Shale operations declined by 37 percent to 21.2 BCFe.
Organised Retail Business
Revenue for 3QFY19 grew by 89.3 percent Y-o-Y to Rs 35,577 crore from Rs 18,798 crore. Healthy festive season sales and new store openings resulted in another robust quarter. Reliance Retail further consolidated its leadership position and is India’s largest, most profitable and fastest growing retailer. Segment EBIT rose by 210.5 percent Y-o-Y to Rs 1,512 crore from Rs 487 crore demonstrating strong operating profit during the quarter. EBIT margin for the segment improved by 160 bps to 4.2 percent reflecting scale benefits. Retail now has 9,907 stores with reach across 6,400 plus towns and cities.
Network18 Media & Investments Limited reported 3QFY19 consolidated revenue of Rs 1,524 crore (up 20 percent YoY on a comparable basis) driven by advertising tailwinds, successful movies like
Andhadhun and healthy growth in subscription income. Comparable operating EBITDA rose 18 percent Yo-Y to Rs 88 crore in Q3FY19, despite continuing investments into recent launches Colors Tamil and Colors Kannada Cinema. EBIT rose to Rs 58 crore as operating leverage drove broadcast profitability, led by continued strong performance of regional channels across both our news and entertainment portfolios.
Shares of RIL settled at Rs 1,133.75 apiece on the BSE on Thursday.
(This is a developing story. Check back for more details)
Disclaimer: Network18, the parent company of CNBCTV18.com, is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.