RIL Q4 profit jumps 17.3% to Rs 9435 cr

Doug Carpenter
April 29, 2018

Reliance Industries today reported a 17.3 per cent jump in its fourth quarter net profit on the back of robust petrochemical margins and upstart telecom arm Jios maiden profits. "Reliance has become the first Indian company to record PBDIT of over $10 billion with each of our key businesses - refining, petrochemicals, retail and digital services achieving record earnings performance", said Mukesh D Ambani, CMD, RIL. However, on an annual basis, the revenue and net profit are up 36.8% and 16.2%, respectively.

Exports from India were higher by 32.5 per cent at Rs 51,295 crore ($ 7.9 billion) against Rs 38,718 crore in the corresponding period of the previous year.

Reliance said pre-tax profit from petrochemical business, where all expansion projects have been completed, was at record high of Rs 6,435 crore in the fourth quarter of the 2017-18 fiscal, up 12 per cent over past year. For Jio Prime registration, clients should pay an extra recharge amount of Rs 99.

Jio's average revenue per user (ARPU) stood at Rs 154, even as Bharti Airtel's ARPU declined to Rs 123 during the same period.

For the full year, net profit reported to Rs 722.96 crore in the year ended March 2018 as against net loss of Rs 31.37 crore during the previous year ended March 2017. "This could potentially lead to 5% and 20% sequential revenue and EBITDA decline thus eroding the profitability for the quarter", the report added.

Gross refining margins (GRM) for the year were at a nine-year high of $11.6 a barrel, against $11 a barrel in the previous year, while higher interest and depreciation charges with the commissioning of projects across businesses resulted in relatively lower net profit growth. RIL's consolidated profit was Rs 8,046 crore a year earlier. "The petrochemicals segment is expected to do better due to healthy deltas and strong volume growth".

134 per cent surge in its retail business. However, analysts have sounded a word of caution.

RIL said its J3 refinery, one of the world's most complex and highly integrated project, is almost complete and has redefined refining and petrochemicals integration. In September it was reported that JioFi commanded a 91% share in the data card market in the April-June quarter, according to CyberMedia Research.

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