RECORD ANNUAL CONSOLIDATED NET PROFIT OF Rs. 36,075 CRORE ($ 5.5 BILLION), UP 20.6%
ANNUAL CONSOLIDATED PBDIT OF Rs. 74,184 CRORE ($ 11.4 BILLION), UP 33.6%
HIGHEST ANNUAL EBIT FOR REFINING, PETROCHEMICALS AND RETAIL BUSINESSES
POSITIVE ANNUAL NET PROFIT FROM DIGITAL SERVICES SEGMENT (JIO)
RECORD QUARTERLY CONSOLIDATED NET PROFIT OF Rs. 9,435 CRORE ($ 1.4 BILLION), UP 17.3%
QUARTERLY CONSOLIDATED PBDIT Rs. 20,664 CRORE ($ 3.2 BILLION), UP 45.9%
Reliance Industries Limited (RIL) today reported its financial performance for the quarter/year ended 31st March 2018. Highlights of the audited financial results as compared to the previous periods are:
HIGHLIGHTS OF QUARTER’S PERFORMANCE (CONSOLIDATED)
• Revenue increased by 39.0% to Rs. 129,120 crore ($ 19.8 billion)
• PBDIT increased by 45.9% to Rs. 20,664 crore ($ 3.2 billion)
• Profit Before Tax increased by 29.2% to Rs. 13,246 crore ($ 2.0 billion)
• Cash Profit increased by 30.4% to Rs. 15,408 crore ($ 2.4 billion)
• Net Profit increased by 17.3% to Rs. 9,435 crore ($ 1.4 billion)
HIGHLIGHTS OF QUARTER’S PERFORMANCE (STANDALONE)
• Revenue increased by 21.8% to Rs. 90,894 crore ($ 13.9 billion)
• Exports increased by 32.5% to Rs. 51,295 crore ($ 7.9 billion)
• PBDIT increased by 26.8% to Rs. 16,046 crore ($ 2.5 billion)
• Profit Before Tax increased by 19.0% to Rs. 11,907 crore ($ 1.8 billion)
• Cash Profit increased by 14.4% to Rs. 12,375 crore ($ 1.9 billion)
• Net Profit increased by 6.7% to Rs. 8,697 crore ($ 1.3 billion)
• Gross Refining Margin (GRM) of $ 11.0/bbl for the quarter CORPORATE HIGHLIGHTS FOR THE QUARTER (4Q FY18)
• J3, one of the world’s most complex and highly integrated project, is nearly complete and has redefined refining and petrochemicals integration.
• RIL announced strategic transaction with Saavn to form India’s largest platform for music, media and artists through its digital music service, JioMusic. The combined entity is valued at over US$1 billion, with JioMusic’s implied valuation at US$ 670 million.
• RIL acquired 5% equity stake in NYSE listed Eros International PLC at a price of US$15 per share. RIL and Eros International Media Limited (“Eros India”) announced that they will equally invest up to Rs. 1,000 crore to co-produce and consolidate content.
• Reliance Retail further strengthened its presence through its partnerships. During the year, Reliance Brands acquired 46.6% stake in Genesis Luxury Fashion Pvt Ltd. Genesis Luxury is a leading player in the business of Luxury apparel and accessories retailing for some of the leading international Luxury brands like Armani, Canali, Michael Kors etc. Genesis Luxury exclusively retails the products for these Brands in India thorough a chain of Exclusive Brand Outlets (EBOs).
• Network18 subsidiary TV18 Broadcast Ltd. took operational control and increased its stake in Viacom18 to 51% by acquiring 1% equity from JV partner Viacom Inc. This shall drive value addition and synergies across the multi-platform group comprising broadcast, digital, filmed and experiential entertainment and media businesses. Pursuant to this acquisition, Viacom18 and the distribution arm IndiaCast Media Distribution Private Limited are being consolidated into TV18 (and hence,Network18) financials from 1st March 2018.
• Reliance Jio Infocomm Ltd. (Jio) along with its technology partner Cisco won the “Best Mobile Operator Service for Consumers” award at the prestigious Global Mobile (GloMo) Awards 2018 at Mobile World Congress (MWC). In addition, JioTV app won in the ‘Best Mobile Video Content’ category for JioTV enabling Jio Digital Life.
• Reliance Jio, India’s premiere mobile and digital services provider earned the number 17 spot on the global list, and also ranked at number one for Most Innovative Companies in India by Fast Company.
• Jio TV was awarded “India digital rights” of the Olympic Winter Games PyeongChang 2018 by the International Olympic Committee (IOC).
• The World Economic Forum announced establishing a new Center for the Fourth Industrial Revolution in Mumbai, India in partnership with RIL.
• RIL was presented with the ‘Drivers of Change’ award at the Financial Times ArcelorMittal Boldness in Business Awards providing recognition for RIL’s exceptional commitment to innovation-led exponential growth and bringing transformational changes to India.
Commenting on the results, Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries Limited said: “FY 2017-18 was a landmark year for Reliance where we established several records on both operating and financial parameters. Reliance has become the first Indian company to record PBDIT of over US$ 10 billion with each of our key businesses – Refining, Petrochemicals, Retail and Digital Services achieving record earnings performance. Substantial synergies, productivity gains and production growth in our energy and materials business has allowed us to perform at very competitive levels despite the uptrend in oil prices through the year. We have established strong foundations in retailing and digital services business with world-class supply chain management and network infrastructure which will serve our customers well. It is very heartening to see the traction our service offerings are gaining, with discerning Indian consumers. The growing Indian market provides exciting opportunities to scale-up these businesses and maximize long-term shareholder value in the coming years.”
FY 2017-18: FINANCIAL PERFORMANCE REVIEW AND ANALYSIS (CONSOLIDATED)
RIL achieved a consolidated revenue of Rs. 430,731 crore ($ 66.1 billion), an increase of 30.5%, as compared to Rs. 330,180 crore in the previous year. Increase in revenue is primarily on account of higher volumes with start-up of petrochemicals projects and uptrend in prices of products in refining and petrochemical businesses. Product prices were led by 18% YoY increase in Brent oil price to $ 57.5/bbl. RIL’s consolidated revenue was also boosted by robust growth in Retail and Digital Services business. Reliance Retail recorded a 105% surge in revenue to Rs. 69,198 crore. RJIL’s Wireless Telecommunication Network recorded revenue of Rs. 23,916 crore in its very first year of commercial operations. Exports (including deemed export) from India were higher at Rs. 176,117 crore ($ 27.0 billion) as against Rs. 147,755 crore in the previous year. Operating profit before other income and depreciation increased by 38.9% on a Y-o-Y basis to Rs. 64,176 crore ($ 9.8 billion) from Rs. 46,194 crore in the previous year. Robust refining and petrochemicals margin environment, volume growth in petrochemicals and rapidly increasing
contribution from consumer businesses led to significant rise in operating profits for the year. Gross refining margins recorded a nine-year-high of $ 11.6/bbl whereas Petrochemicals EBIT margin were at six year high level of 16.9%. Retail business profitability improved sharply with strong growth in revenues. Retail EBIT margin improved by 70 bps to 3.0%. Digital Services business contributed positively in its first year of operation with strong customer traction for Jio’s wireless services. Profit after tax was higher by 20.6% at Rs. 36,075 crore ($ 5.5 billion) as against Rs. 29,901 crore in the previous year. Higher interest and depreciation charges with the commissioning of projects across businesses resulted in relatively lower growth in profit after tax.