Reliance Industries's Jio makes profit for second quarter in a row

  • Reliance Industries's Jio makes profit for second quarter in a row

Reliance Industries's Jio makes profit for second quarter in a row

Telecom operator Reliance Jio today posted a 1.2 per cent sequential rise in its standalone net profit at Rs 510 crore for the last quarter of 2017-18.The company had registered a net profit of Rs 504 crore in the October-December 2017 period.

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 previous year.

Revenue too shot up 39 per cent at Rs 1,29,120 crore compared to Rs 92,889 crore during the same period.For the full year, consolidated profit grew 21 per cent at Rs 36,075 crore compared to Rs 29,901 crore in FY17, while consolidated revenue shot up 30.5 per cent to Rs 4,30,731 crore up from Rs 3,30,180 crore.

Its disruptive telecom business continued to expand aggressively and reported its second consecutive quarterly profit as it lured another 26.5 million customers with tariffs that its rivals blame for their plunging performance. The owner of world's largest refining complex earned $11 on turning every barrel of crude oil into fuel in January-March as against a gross refining margin (GRM) of $11.5 in the same period past year.

The oil-to-telecom company posted a net profit of Rs 9,435 crore compared with Rs 8,046 crore a year ago and Rs 9,423 crore in the preceding quarter. The company said refining margins in Asia were likely to remain firm in the near term. The stock rose almost 6 percent so far in the year 2018 and by about 39 percent in the last one year. In sales, the company had earlier set a record of Rs 1,18,038 crore in the December quarter of 2013, data compiled from corporate database Capitaline showed. For the fourth quarter, revenue was up 13.1 per cent to Rs 24,183 crore.

The petrochemicals business reported an EBIT (earnings before interest and taxes) of 87% at Rs 6,435 crore, making the operating profit higher than the refining and marketing operations' EBIT of Rs 5,607 crore.

RIL's organised retail business delivered a pleasant surprise.

"The volumes in the fourth quarter were good and we ended the whole year with 31million tonnes output".

"Petchem earnings will likely improve 11 per cent as new capacities ramp-up in addition to robust cracker and polymer margins".

The increase in profit beat analysts' estimates. The increase in revenue is primarily on account of higher volumes with start-up of petrochemicals projects and uptrend in the prices of products in refining and petrochemical businesses. On the NSE, it rose 2.17 per cent to close at ₹996.3.