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Earnings

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Reliance Q4 profit rises 10% to Rs 10,362 crore, beats Street estimates

However, standalone profit declined 1.60 per cent to Rs 8,556 crore on lower gross refining.

ETMarkets.com|
Updated: Apr 18, 2019, 08.59 PM IST
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Mumbai: Oil-to-telecom major Reliance Industries (RIL) reported a decent growth in consolidated profit, backed by strong show by retail and telecom divisions.

RIL on Thursday reported 9.79 per cent year-on-year (YoY) rise in consolidated profit at Rs 10,362 crore for the quarter ended March 31, beating Street estimates. Analysts in an ET NOW poll had projected a net of Rs 10,000 crore.

India’s biggest company in terms of market capitalisation had posted a profit of Rs 9,438 crore in the corresponding quarter last year.

However, standalone profit declined 1.60 per cent to Rs 8,556 crore on lower gross refining margin.

Overall consolidated revenue increased 19.40 per cent YoY to Rs 1,54,110 crore in Q4FY19. PBDIT rose 16.30 per cent to Rs 24,047 crore.

“Now, consumer businesses account for almost 25 per cent of our ebitda,” Joint Chief Financial Officer V Srikanth told reporters at a press conference in Mumbai, adding that other highlights were that the company completed the demerger of fibre and tower units, and moved it under the Sebi-approved infrastructure InviT structure.

“Refining (was) weaker than what it was… compensated by consumer businesses because petchem was also flat,” he added.

The board of the company has recommended a dividend of Rs 6.50 per equity share on face value of Rs 10 each for the financial year ended March 31, 2019.

Commenting on the results, Chairman and Managing Director, Mukesh Ambani said: “During FY19, we achieved several milestones and made significant strides in building Reliance of the future. Retail crossed Rs 1,00,000 crore revenue milestone, Jio now serves over 300 million consumers and our petrochemicals business delivered its highest ever earnings.”

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Telecom division
Reliance Jio posted 64.70 per cent growth in profit at Rs 840 crore in Q4FY19 over Rs 510 crore in Q4FY18. Jio’s average revenue per user (Arpu) fell to Rs 126.2. Analysts in an ET NOW poll had projected Arpu of Rs 129.

Petrochem division
Gross refining margin (GRM) came in at $8.2 per barrel, outperforming Singapore complex margins by $5.0 per barrel. The figure was $8.8 and $11 per barrel for the quarters ended December 31 and March 31, 2018, respectively.

The Q4FY19 revenue from refining and marketing segment decreased by 6.1 per cent YoY to Rs 87,844 crore while segment EBIT declined by 25.5 per cent YoY to Rs 4,176 crore.

The segment performance was impacted by lower crude throughput due to planned maintenance. Also, weak light and middle distillate product cracks impacted GRM.

Retail division
Revenue of organised retail business increased 51.60 per cent YoY to Rs 36,663 crore in Q4FY19. The segment’s EBIT increased 81 per cent YoY to Rs 1,721 crore against Rs 951 crore during the same period.

Revenue from the organised retail business for FY19 jumped 88.70 per cent YoY to Rs 1,30,566 crore against Rs 69,198 crore in FY18.

The segment’s PBDIT for FY19 grew 145.2 per cent to Rs 6,201 crore as against Rs 2,529 crore in previous year. During the year, retail area under operations grew by 24.2 per cent to 22 million sq ft.

Other financials
For the full financial year, the company posted 44.60 per cent YoY rise in revenue at Rs 6,22,809 lakh crore.

Outstanding debt as on March 31 stood at Rs 2,87,505 crore compared with Rs 2,18,763 crore as on March 31, 2018. Cash and cash equivalents increased to Rs 13,3027 crore in FY19 over Rs 78,063 crore in FY18.

The board of directors also approved an appropriation of Rs 30,000 crore ($4.3 billion) to the general reserve.

RIL’s consolidated revenue in FY19 was improved on account of robust growth in retail and digital services business.
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