RIL Q1 net profit rises 8.6%

Led by record gross refining margins (GRMs), Reliance Industries (RIL) posted 8.6% rise in standalone net profit for the quarter ended June 30, 2017, at Rs 8,196 crore, compared with Rs 7,548 crore in the same period of the previous fiscal.

Revenues from operations for the company on a standalone basis during the quarter rose 18.39%, to Rs 70,434 crore, against Rs 59,493 crore in the comparable period of the previous fiscal. GRMs for the company during the quarter stood at a nine-year high of $11.9/barrel (bbl), against $11.5/bbl in the sequential quarter (Q4FY16).

On a consolidated basis, the company’s profits grew 28% to Rs 9,108 crore, compared with Rs 7,113 crore in the same period of the previous fiscal. Revenues on a consolidated basis for RIL during the quarter grew 26.7%, to Rs 90,537 crore, against RS 71,451 crore in Q1FY17.

“Our industry leading portfolio of assets in the refining and petrochemicals business contributed to considerable improvement in our earnings for the quarter. Retail business also witnessed accelerated growth momentum with YoY revenue growth of 74%. Jio has revolutionised the Indian telecom and data consumption landscape,” RIL Chairman and Managing Director Mukesh D Ambani said.

“Over the past four years, we made significant investments in new plants, thus creating organic growth platforms for our energy and materials businesses. During the quarter, revenues from the refining and marketing segment increased by 18.3% (YoY) to Rs 66,945 crore, compared with Rs 56,568 crore a year ago. Segment EBIT (including exceptional item of Rs 1,087 crore) increased by 13.4% (YoY) to a record level of Rs 7,476 crore, against Rs 6,593 crore in Q1FY17. 

Reliance makes strategic investments
Reliance Industries has decided to invest upto $25 million over the next eight years in a technology incubator named Jerusalem Innovation Incubator (JII).

The company has also decided to acquire 2.52 crore shares in Balaji Telefilms for Rs 413.28 crore through a preferential issue. These shares constitute 24.92% of the post-issue paid-up capital of Balaji Telefilms and the transaction is expected to be completed in 45 to 60 days.