RIL Q3 PAT up by 8.8% at INR 10,251 crore

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Records quarterly Consolidated Revenue of INR 171,336 crore ($ 24.6 Billion) up by 55.9 %

Reliance Industries Limited (RIL) today reported its financial performance for the quarter/nine months ended 31 st December, 2018. Highlights of the unaudited financial results as compared to the previous periods are:

First box – from the release

HIGHLIGHTS OF QUARTER’S PERFORMANCE (CONSOLIDATED)

Revenue increased by 55.9% to ` 171,336 crore ($ 24.6 billion)

PBDIT increased by 20.0% to ` 23,801 crore ($ 3.4 billion)

Profit Before Tax increased by 9.3% to ` 14,445 crore ($ 2.1 billion)

Cash Profit increased by 10.7% to ` 16,727 crore ($ 2.4 billion)

Net Profit increased by 8.8% to ` 10,251 crore ($ 1.5 billion)

HIGHLIGHTS OF QUARTER’S PERFORMANCE (STANDALONE)

Revenue increased by 37.7% to ` 108,561 crore ($ 15.6 billion)

Exports increased by 35.2% to ` 62,378 crore ($ 8.9 billion)

PBDIT increased by 10.4% to ` 16,963 crore ($ 2.4 billion)

Profit Before Tax increased by 1.5% to ` 11,972 crore ($ 1.7 billion)

Cash Profit increased by 1.8% to ` 12,134 crore ($ 1.7 billion)

Net Profit increased by 5.6% to ` 8,928 crore ($ 1.3 billion)

Gross Refining Margin (GRM) of $ 8.8/bbl for the quarter

Commenting on the results, Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries Limited said: “In our endeavor to consistently create more value for our country and stakeholders, our company has become the first Indian private sector corporate to cross ₹ 10,000 crore quarterly profits milestone. I am proud to be part of the committed and talented team at Reliance that has helped achieve many milestones in our continuing growth journey. 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. In our wireless business, our customer-centric offerings and strong ubiquitous network are helping to digitalize India at an unprecedented rate. As we execute on our strategies to deliver superior products and services to Indian consumers, I am confident, Reliance is well-positioned for the future and for the next cycle of growth.”

3Q FY 2018-19: FINANCIAL PERFORMANCE REVIEW AND ANALYSIS (CONSOLIDATED) For the quarter ended 31 st December, 2018, RIL achieved revenue of ` 171,336 crore ($ 24.6 billion), an increase of 55.9% as compared to ` 109,905 crore in the corresponding period of the previous year. Increase in revenue is primarily on account of higher price realizations and volumes for Petrochemical and Refining businesses along with continuing strong growth momentum in consumer businesses. Product prices for the Refining and Petrochemicals business increased in line with 10.4% higher average Brent crude oil price. The higher volumes in Petrochemical business are on account of stabilization and ramp-up of new petrochemical facilities. Retail business and Digital Services business recorded an increase of 89% and 51% in revenue during the quarter compared to the corresponding quarter of the previous year.

Exports (including deemed exports) from RIL’s India operations were higher by 35.2% at ` 62,378 crore ($ 8.9 billion) as against ` 46,151 crore in the corresponding period of the previous year due to higher volumes of polymer products and fibre intermediates on account of stabilization of new facilities at Jamnagar and higher product prices in petrochemical and refining business.

Other expenditure increased by 44.3% to ` 20,456 crore ($ 2.9 billion) as against ` 14,177 crore in corresponding period of the previous year primarily due to higher fuel prices and higher production.

Increase in other expensesalso reflect the rapid scale-up of consumer businesses, mainly on account of higher network operating expenses, regulatory charges, programming and telecast related expenses, lease rent and selling expenses. Operating profit before other income and depreciation increased by 21.3% to ` 21,317 crore ($ 3.1 billion) from ` 17,580 crore in the corresponding period of the previous year. 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 ` 5,237 crore ($ 751 million) as compared to ` 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 ` 4,119 crore ($ 590 million) as against ` 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. Profit after tax was higher by 8.8% at ` 10,251 crore ($ 1.5 billion) as against ` 9,420 crore in the corresponding period of the previous year.

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