Reliance scales new heights as Retail, Jio, Petrochem beat records

Mukesh Ambani-led company records consolidated revenue of Rs 6,22,809 crore

(Pic credit: Nalin Solanki)

MUMBAI: Reliance Industries Limited has delivered record consolidated net profit of Rs 39,588 crore for the last fiscal despite a period of heightened volatility in the energy markets. “I am delighted to highlight that the company’s  Company has more than doubled its PBDIT in last five years to Rs 92,656 crore – establishing a global benchmark for value creation,” said Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries Limited.  

Reliance Retail crossed Rs 100,000 crore revenue milestone, Jio now serves over 300 million consumers and the company’s  petrochemicals business delivered its highest ever earnings. “I am proud of the entire Reliance team; their hard work and dedication has laid the foundation for these achievements and many more to come,” Ambani said.

“Focus on service and customer satisfaction led to higher numbers of subscribers and footfalls across the company’s  consumer businesses, driving robust revenue growth. Our endeavour is to create better experiences for the company’s  customers, leading to a better shared future,” he said.

RIL achieved a consolidated revenue of Rs 622,809 crore ($ 90.1 billion), an increase of 44.6% as compared to Rs 430,731 crore in the previous year. Increase in revenue is primarily on account of higher realization for Refining & Petrochemical products with a 22% increase in average Brent Crude Price on Y-o-Y basis. Higher volumes with stabilization of new Petrochemical facilities also contributed to revenue growth.

RIL’s consolidated revenue was also improved on account of robust growth in Retail and Digital Services business. Retail business and Digital Services business recorded an increase of 88.7% and 94.5% in revenue as compared to previous year.

Exports (including deemed exports) from India were higher at Rs 224,391 crore ($ 32.4 billion) as against Rs 176,117 crore in the previous year.

Operating Profit before other income, depreciation and exceptional items increased by 30.8% on a Y-o-Y basis to Rs 83,918 crore ($ 12.1 billion) as compared to Rs 64,176 crore in the previous year. Volume growth in Petrochemicals and rapidly increasing contribution from consumer businesses led  to significant rise in operating profit for the year. Petrochemicals EBIT margin was at all time high of 18.7%. Retail business profitability improved with strong growth in revenues, benefitting from scale and operating efficiencies. Digital services contributed significantly to profits as Jio continues to maintain its strong customer traction with high quality network and unmatched value proposition.

Refining business contribution was lower with volatile crude oil price environment, weak light product cracks and subdued demand.

Profit after tax before exceptional item was higher by 13.1% at Rs 39,588 crore ($5.7 billion) as against Rs 34,988 crore in the previous year. Relatively lower growth in profit after tax is mainly due to higher interest charges and depreciation due to stabilization of projects.

4Q FY 2018-19: For the quarter ended 31st March 2019, RIL achieved revenue of Rs 154,110 crore ($22.3 billion), an increase of 19.4% as compared to Rs 129,120 crore in the corresponding period of the previous year.

Increase in revenue is primarily on account of strong growth in Retail & Digital Services businesses which grew by 51.6% and 61.6%, respectively. Higher Petrochemical volumes also contributed to growth in revenue.

Exports (including deemed exports) from RIL’s India operations were lower by 4.4% at Rs 49,052 crore ($ 7.1 billion) as against Rs 51,295 crore in the corresponding period of the previous year due to lower volume in refining business.

Other expenditure increased by 59.6% to Rs 21,834 crore ($ 3.2 billion) as against Rs 13,680 crore in corresponding period of the previous year primarily due to higher network operating expenses, regulatory charges, programming and telecast related expenses, lease rent and selling expenses.

Operating profit before other income and depreciation increased by 12.7% to ` 20,832 crore ($ 3.0 billion) from Rs 18,477 crore in the corresponding period of the previous year. The growth in operating profit was led by strong operating performance in Petrochemicals, Retail and Digital services businesses. Significant volume growth and margin improvement in polyester chain boosted Petrochemicals segment earnings. Superior product and value proposition in Retail & Digital Service businesses is driving customer traction and profitability.

Depreciation (including depletion and amortization) was Rs 5,295 crore ($ 765 million) as compared to Rs 4,852 crore in corresponding period of the previous year. The increase was largely on account of RJIL’s Wireless Telecommunication Network.

Finance cost was at Rs 4,894 crore ($ 708 million) as against Rs 2,566 crore in corresponding period of the previous year. This increase is primarily on account of commencement of petrochemical projects at Jamnagar and Digital Services business. Higher loan balances also contributed to the increase in finance cost.

Profit after tax was higher by 9.8% at Rs 10,362 crore ($ 1.5 billion) as against Rs 9,438 crore in the corresponding period of the previous year.

Basic earnings per share (EPS) for the quarter ended 31st March 2019 was Rs 17.5 as againstRs 15.9 in the corresponding period of the previous year.

Outstanding debt as on 31st March 2019 was Rs 287,505 crore ($ 41.6 billion) compared to Rs 218,763 crore as on 31st March, 2018.

Cash and cash equivalents as on 31st March, 2019 were at Rs 133,027 crore ($ 19.2 billion) compared to Rs 78,063 crore as on 31st March, 2018.

The capital expenditure for the quarter ended 31st March,2019 was Rs 32,665 crore ($ 4.7 billion). In addition to the above, movement in gross block is on account of demerger / slump sale of Fibre & Tower assets and Ethane Ships.

RIL retained its domestic credit ratings of “CRISIL AAA/Stable” from CRISIL and “IND AAA/Stable” from India Ratings and an investment grade rating for its international debt from Moody’s as “Baa2” and “BBB+” from S&P.

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