Reliance Q1 profit rises 7% YoY to Rs 10,104 crore, beats Street estimates
The company’s revenue increased by 21.25 per cent to Rs 1.61 lakh crore in the June quarter.
Reliance’s telecom unit Jio reported 45.60 per cent rise in profit at Rs 891 crore while sales of retail unit grew 47.5 per cent to Rs 38,196 crore.
The company’s overall revenue increased by 21.25 per cent to Rs 1.61 lakh crore in the June quarter from Rs 1.33 lakh crore in the year-ago period.
The Gross refining margin (GRM) for June quarter stood $8.1 per barrel, premium of $4.6 per barrel over Singapore complex margin.
Basic earnings per share (EPS) of the overall group stood at Rs 17.1 as against Rs 16 in the corresponding period of the previous year.
Ahead of Q1 earnings, shares of the company settled 1 per cent down at Rs 1,249, while the BSE Sensex closed 560 points, or 1.44 per cent down at 38,337.
- Net profit of Rs 10,104 crore, up 6.8% YoY
- Record standalone profit of Rs 9,036 crore, up 2.4% YoY
- Record EBITDA from Retail and Digital Services business
- Consumer businesses account for nearly 32% of segment EBITDA
- Resilient earnings from downstream energy businesses
- Retail Quarterly EBITDA crosses Rs 2,000 crore mark
- Subscriber base of Jio at 331.3 million
Commenting on the results, Mukesh Ambani, Chairman and Managing Director, Reliance Industries said: “Our first quarter earnings were strong despite weak global macroeconomic environment and challenging hydrocarbon market conditions. The company continues to make major strides in its retail and digital services businesses led by focus on growth markets with offerings in the right product segments and compelling value proposition. We are pleased with the robust growth both in revenues and operating income for Reliance Retail. Our digital services business continues to transform the mobility market in India while scaling newer milestones.”
Outstanding debt came in at Rs 2,88,243 crore in Q1FY20 compared with Rs 2,87,505 crore as on March 31, 2019.
Cash, cash equivalents and marketable securities stood at Rs 1,31,710 crore as of June 30, 2019 compared with Rs 1,33,027 crore as on March 31, 2019.
Operating revenue of Jio increased 44 per cent YoY and 5.20 per cent QoQ to Rs 11,679 crore. EBITDA margin jumped 130 basis points YoY and 110 bps QoQ to 40.10 per cent. Revenue from digital services jumped 54.50 per cent YoY to Rs 14910 crore in Q1FY20.
Digital business added 24.60 million subscribers to 331.30 million during the quarter under review.
Consolidated petrochemical EBIT stood at Rs 7,508 crore in Q1FY20 over Rs 7,857 crore in Q1FY19.
The revenue from the refining and marketing segment increased 6.4 per cent to Rs 1,01,721 crore while EBIT declined 15.2 per cent to Rs 4,508 crore. Revenue from petrochemicals segment decreased 6.6 per cent to Rs 37,611 crore due to decrease in volumes and price realisations primarily in Paraxylene (PX) and Monoethylene Glycol (MEG), which was partially offset by the increase in volumes of Polyesters.
Revenue from the oil and gas segment slid 35.5 per cent to Rs 923 crore.
The segment recorded highest-ever revenue and business PBDIT. The sales grew by 47.5 per cent to Rs 38,196 crore as against Rs 25,890 crore in the corresponding period of the previous year. Segment EBITDA grew 69.9 per cent to Rs 2,049 crore as against Rs 1,206 crore last year.
Reliance Retail operated 10,644 stores across 6,700 plus towns and cities, with an area of 23 million sq ft. Rapid store expansion particularly in tier III or tier IV markets, stronger value proposition and catchment focused assortment have been key drivers for robust growth in retail business .
Other key announcement
In another announcement, the company said Brookfield will invest Rs 25,215 crore in the units proposed to be issued by Tower Infrastructure Trust.
“Reliance Industrial Investments and Holdings, a wholly-owned subsidiary of Reliance Industries has entered into an agreement with BIF IV Jarvis India, an affiliate of Brookfield Asset Management Inc. for an investment by Brookfield (along with co-investors) of Rs 25,215 crore in the units proposed to be issued by the Tower Infrastructure Trust," the company said in a regulatory filing.
The company aims to clear Rs 12,000 crore of debt via deal with Brookfield.