Better prices in refining and petrochem boost RIL Q2 net profit

Better prices in refining and petrochem boost RIL Q2 net profit

Oil-to-telecoms conglomerate Reliance Industries Ltd posted a 12.5 per cent rise in its September-quarter consolidated net profit, buoyed by higher margins from its core refining and petrochemicals businesses.

"The strong financial results of Jio demonstrates the robust business model of Jio and the significant efficiencies that the Company has built through its investment in the latest 4G technology and right business strategy".

Consolidated profit was estimated at Rs 8,169 crore and EBITDA at Rs 13,178 crore with margin of 15.4 percent for the quarter, according to average of estimates of analysts polled by CNBC-TV18. Profit on a standalone basis, which includes the company~s refining, petrochemicals and oil and gas exploration businesses, increased by 7% at Rs 8,265 crore against last year's figure recorded at Rs 7,704 crore.

"The results reflect strong underlying fundamentals of our refining and petrochemicals businesses".

Gross refining margin for the quarter came in at Dollars 12 per barrel, which was slightly below analysts' estimates but still at 9-year high.

Last quarter, digital services - which is what Jio is termed as on the company's books - were shown as generating a revenue of just 145 cr rupees, and an operating loss of Rs 22 cr.

Interestingly, data provided by RIL, it was known that Reliance Jio's net loss widened in Q2 at Rs 270.59 crore compared to net loss of Rs 21.27 crore in Q1FY18 and net loss of Rs 3.90 crore in Q2FY17. Sustained demand growth coupled with supply disruptions further tightened demand-supply balances globally during the quarter.

"Positive EBIT in the first quarter of commercial operations, given tremendous uptake by subscribers and cost advantages generated through use of efficient 4G technology", the company said.

Total income of Reliance Jio from operations came in at Rs 6,148.7 crore in the September quarter against Rs 0.30 crore notched during the first quarter of the current fiscal.

In this quarter, revenue from the Refining and Marketing segment increased by 15.3% Y-o-Y to Rs 69,766 crore ($ 10.7 billion). Since commencement of services on September 5, 2016, Jio has been aggressive with its pricing tariffs, to cross 100 million subscribers in 170 days, adding 6 lakh subscribers per day at an average.

The company reported EBITDA (earnings before interest, taxes, depreciation and amortisation) of Rs 1,443 crore in July-September 2017 period with margin pegged at 23.5 per cent.

"He added, ". We are confident that Jio will bring significant benefits to the Indian economy and the Indian customers and will take India to a much higher pedestal". "GRM in the quarter at $12 per barrel is at a 9-year high", said RIL Chief Financial Officer Alok Agarwal. Segment Ebit (earnings before interest and tax) also rose sharply by 45.2 percent to Rs 4,960 crore, "supported by strong volume growth, higher margins and improved product mix with ethane cracking stabilising at Dahej and Hazira", the company statement said.

Related Articles

  • Allies Pressure Catalan Leader To Declare Independence From Spain

    Allies Pressure Catalan Leader To Declare Independence From Spain

    On Oct. 10, Puigdemont said Catalonia had won its right to be independent from Spain because of the result of the referendum. He said in Luxembourg that he "wouldn't like a European Union that in 15 years consists of 98 states".
    Rahul Gandhi's temple visits won't work for Congress in Gujarat: Yogi Adityanath

    Rahul Gandhi's temple visits won't work for Congress in Gujarat: Yogi Adityanath

    Taking a dig at Rahul for visiting temples in Gujarat, he said, "Visiting temples will not yield result for him (Rahul)". His remarks came in the wake of Gandhi's jibe at the RSS, suggesting discrimination against women in the organisation.

    Blackhawk Network Holdings, Inc. (HAWK) Shares Down 20.5% on Analyst Downgrade

    Blackhawk Network Holdings, Inc is now down by 20.36% since yesterday's close of 44.2 and is one of the laggers in today's market. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link .
  • The next great Aston Martin convertible has arrived

    The next great Aston Martin convertible has arrived

    Features include heated steering wheel to encourage owners to keep the top down even when the temperature drops. Buyers will be able to choose from three soft top colors: bordeaux red, black silver or grey silver.
    Darjeeling: Police officer shot dead in clashes with Bimal Gurung's supporters

    Darjeeling: Police officer shot dead in clashes with Bimal Gurung's supporters

    Once again violence broke out in Darjeeling, after the clashes between Kolkata Police and Gorkha Janmukti Morcha (GJM) supporters. The ADG said a cornered Gurung, who has lost mass support in recent times, was trying to foment trouble in the hills.
    Ruled out for Crystal Palace match

    Ruled out for Crystal Palace match

    Chelsea midfielder N'Golo Kante has reportedly been ruled out of action for the foreseeable future after sustaining a hamstring injury on global duty.
  • All future iPhones will be able to recognize your face, KGI says

    Apple iPhone X's Face ID and TrueDepth camera are the new talks of the town. It is also the reason I chose the iPhone 8 Plus over the iPhone X this year.
    Mobile To Cap Mobile Without Borders To 5GB

    Mobile To Cap Mobile Without Borders To 5GB

    After 5GB, you will still have unlimited data at Simple Global speeds (up to 128kbps or 256kbps if you have ONE Plus). Instead, subscribers will get just 5GB of guaranteed full-speed LTE data before their data speeds are throttled.
    Scapa Group plc (SCPA) Rating Lowered to Hold at Numis Securities Ltd

    Scapa Group plc (SCPA) Rating Lowered to Hold at Numis Securities Ltd

    Citigroup Inc. reissued a buy rating and set a GBX 400 ($5.26) price objective on shares of Glencore PLC in a report on Monday. JP Morgan Cazenove's target price would suggest a potential downside of -12.72% from the company's stock close price.
  • President Trump is Destroying the NFL Right Before

    President Trump is Destroying the NFL Right Before "the owners eyes"

    The point is that these athletes are standing up for the change they believe in and they're doing it the only way they can. Second however, the playing of the National Anthem before a game never has had anything to do with honoring the military.
    Baghdad prepares for Kirkuk attack, Kurdish Pres. Aide

    Baghdad prepares for Kirkuk attack, Kurdish Pres. Aide

    The Iraqi military denied it had launched operations south of Kirkuk , but said it was moving to mop up in areas recently liberated from Daesh.
    Sex with minor wife, despite consent, is rape

    Sex with minor wife, despite consent, is rape

    "India has enacted a law against child sex abuse, but should do much more to enforce the protections", she said. Despite improvement in literacy levels, child marriages are still common in different parts of the country.