Business

Reliance Industries Net Profit Rises 6.8% In Q1

The consolidated net profit of Reliance Industries Ltd. (RIL) for the first quarter ended June 30, 2019, reported a 6.8 percent rise on the back of strong performances by Reliance Jio Infocomm Ltd and Reliance Retail (consumer businesses).

Reliance Industries having the country’s largest market capitalization stood at Rs 10,104 crore net profit in April-June while consolidated revenue rose 22.1 percent to a record Rs 1,72,956 crore compared to Rs 141,699 crore in the corresponding quarter, FY19 (1Q).

Consolidated Financial Performance

Amount in crores (Rs)

Particulars FY20 (1Q) FY19 (4Q) FY19 (1Q) % change

w.r.t.

1Q FY19

% change

w.r.t.

4Q FY19

Revenue 172,956 154,110 141,699 22.1% 12.2%
PBDIT 24,486 24,047 22,449 9.1% 1.8%
Net Profit 10,104 10,362 9,459 6.8% (2.5%)
EPS 17.1 17.5 16.0 6.8% (2.5%)

 

In the above table, EPS stands for earning per share and net profit is after minority interest.

While filing to the Bombay Stock Exchange, Reliance Industries Ltd had posted a consolidated net profit of Rs 9,459 crore in the same quarter last year, FY19 (1Q).

The earnings per share (EPS) of the company stood at Rs 17.1 as against Rs 16 in the corresponding period of the previous year, FY19 (1Q).

During the quarter under review, digital business (Jio) added 24.60 million subscribers to 331.30 million.

Retail Business recorded highest-ever revenue and business PBDIT with sales grew by 47.5 percent to Rs 38,196 crore as compared to Rs 25,890 crore in FY19 (1Q). Earnings before interest, tax, depreciation, and amortization (EBITDA) grew 69.9 percent to Rs 2,049 crore. Rapid store expansion in tier III or tier IV markets operating at 10,644 stores with an area of 23 million sq ft across and 6,700 plus towns and cities.

In the case of the telecom sector, the EBITDA margin jumped 110 bps QoQ to 40.10 percent and 130 basis points YoY.

Mukesh D. Ambani, Chairman, and Managing Director said in a statement that despite the weak global macroeconomic environment and challenging hydrocarbon market conditions, the first-quarter earnings were strong.

The Mumbai-headquartered company, RIL said in the exchange filing that increase in revenue for the Refining business has been contributed by higher refinery throughput on YoY basis which recorded an

  • Increase of 54.50 per cent YoY(year-on-year) to Rs 14910 crore in Q1FY20 in respect to digital services, and
  • Increase of 47.5 per cent YoY to Rs 38,196 crore in Q1FY20 with respect to retail business.

Key announcement: A wholly-owned subsidiary of Reliance Industries, Reliance Industrial Investments and Holdings will enter into a major agreement with Brookfield Infrastructure Partners Lp for a ₹25,215 crore investment in Tower Infrastructure Trust. Through this agreement, the company aims to clear Rs 12,000 crore of debt.

Shares of Reliance Industries Ltd (RIL) (ahead of its quarterly results announcement)

On NSE On BSE
·         shares fell by 0.70 per cent to close at Rs 1,253

·         Traded volume: 74 lakh units were traded.

 

·         Shares fell by 1.48 per cent to Rs 1,243.

·         Traded volume: 3.22 lakh shares were traded.a

 

 

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