Reliance Industries net up 6.8%

Our Bureau Mumbai | Updated on July 19, 2019 Published on July 19, 2019

Refinery unit not affected by fluctuating crude prices; RJio profit rises as well

The consolidated net profit of Reliance Industries Ltd, the oil to telecom conglomerate owned by billionaire Mukesh Ambani, rose 6.8 per cent in the April-June quarter to ₹10,104 crore from a year ago, as revenue from operations jumped 22.1 per cent to ₹1,72,956 crores.

The consolidated net profit was ₹9,459 crore on operational revenue of ₹1,41,699 crore in the first quarter of FY19.

On a stand-alone basis, the net profit rose 2.4 per cent to ₹9,036 crore from ₹8,820 crore a year earlier, the company said in a filing to the stock exchanges.

Reliance Industries — which runs the world’s biggest refining and petrochemicals complex at Jamnagar in Gujarat — said the quarterly consolidated net profit was unaffected by the volatility in crude prices and other factors.

The company’s revenue from the refining and marketing business rose 6.4 per cent to ₹1,01,721 crore from ₹95,646 crore in the corresponding period last year.

The gross refining margins — earned by turning a barrel of crude oil into refined products — fell to $8.1 per barrel from $10.5 per barrel a year ago. The crude throughput rose to 17.5 million metric tonnes (MMT) from 16.6 MMT a year ago.

The petrochemicals business reported a 6.6 per cent drop in revenue to ₹37,611 crore from ₹40,287 crore in the first quarter of FY19. 

The throughput in petrochemicals dropped to 8.7 MMT from 9.2 MMT a year earlier.

The net profit of Jio, its digital unit, jumped 45.6 per cent to ₹891 crore from ₹612 crore a year ago on the back of a 44-per cent spike in revenue to ₹11,679 crore (₹8,109 crore).

Volatile market

“We know the environment for refining and petrochemicals, the volatility that we saw in crude prices, the macro-economic headwinds, the US-China trade related tensions. But from our point of view, thanks to the integration that we had in refining and petrochemicals, a lot of this volatility got absorbed without having any meaningful impact on our earnings,” said V Srikanth, joint-CFO.

“All in all, a very volatile quarter, but the interlinkages helped us deliver,” he added.

Published on July 19, 2019
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