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Reliance Q2 profit rises 18.32% YoY to Rs 11,262 crore, beats Street estimates

Analysts in an ET NOW poll had estimated Rs 11,000 crore profit for the quarter.

ETMarkets.com|
Updated: Oct 18, 2019, 07.43 PM IST
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Reliance-2---Reuters
Mukesh Ambani-led Reliance Industries on Friday beat Street estimates to report an 18.32 per cent year-on-year (YoY) rise in September quarter profit at Rs 11,262 crore on robust growth in telecom and retail verticals.

"The company has reported record net profit for the quarter," said Mukesh Ambani, Chairman and Managing Director.

Analysts in an ET NOW poll had estimated Rs 11,000 crore profit for the quarter.

The company’s overall revenue for the quarter increased 4.84 per cent to Rs 1.64 lakh crore from Rs 1.56 lakh crore in the year-ago period.

Reliance’s telecom unit Jio reported a 45.40 per cent YoY rise in profit at Rs 990 crore for the quarter on an average revenue per user (Arpu) of Rs 120.

Jio-snip-1

Gross refining margin (GRM) for the quarter stood at $9.40 per barrel against $9.5 per barrel reported for the same period last year.
Key Highlights (Consolidated Numbers)
  • Revenue increased by 4.8% to Rs 163,854 crore ($ 23.1 billion)
  • PBDIT increased by 15.5% to Rs 25,820 crore ($ 3.6 billion)
  • Profit Before Tax increased by 14.1% to Rs 15,055 crore ($ 2.1 billion)
  • Cash Profit increased by 18.0% to Rs 18,305 crore ($ 2.6 billion)
  • Net Profit increased by 18.3% to Rs 11,262 crore ($ 1.6 billion)

Basic earnings per share (EPS) for the overall group rose to Rs 18.59 from Rs 16.06 reported for the corresponding period of previous year.

Ahead of Q2 earnings, shares of the company settled 1.37 per cent higher at Rs 1415.30, , even as BSE Sensex closed 246.32 points, or 0.63 per cent, up at 39,298.

During the day, RIL added another feather to its cap by becoming the first domestic firm to hit the Rs 9 lakh crore market cap in intraday trade. However, the stock ended the day with a market-cap Rs 8.97 crore.

"These excellent results reflect benefits of our integrated oil to chemicals (O2C) value chain and the rapid scale-up of our consumer businesses. During this quarter, our O2C businesses gained from favourable fuel margins environment, feedstock sourcing flexibility and higher petrochemicals volumes. Continuing growth trends in our retail business is heartening,” Ambani said.
RIL-snip

Petrochemicals
Revenue from the petrochemicals segment dropped 11.90 per cent YoY for the quarter to Rs 38,538 crore, reflecting a drop in the prices of petrochemical products. Revenue for the oil and gas segment declined 40.20 per cent YoY to Rs 790 crore.

“The segment performance continued to be impacted by declining volume. Domestic production was lower at 11.9 BCFe, down 22 per cent YoY, while production of US shale operations fell 25 per cent to 17.8 BCFe YoY,” an RIL release said.

Retail
Revenue from retail business jumped 27 per cent YoY to hit a record of Rs 41,202 crore. Segment EBIT increased 63.60 per cent YoY to Rs 2,035 crore. The area under operation jumped from 19.50 million sq ft in Q2FY19 to 24.50 million sq ft in Q2FY20.

During the quarter, Reliance Retail added 337 stores, taking the total store count to 10,901.

Media
Revenue from the media business declined 5.10 per cent YoY to Rs 1,174 crore. However, EBIT margin for the vertical jumped to 4 per cent in Q2FY20 from -0.20 per cent in Q2FY19.

“Robust 43 per cent growth in subscription income post implementation of new tariff order (NTO) was offset by a weak advertising environment. The news portfolio solidified its leadership with a 10.9 per cent viewership share. Broadbased cost optimisation led to entertainment Business-as usual (BAU) margins rising to 12.9 per cent, against 9.9 per cent in 2QFY19,” RIL said in a release.

Revenue from digital services jumped 42.70 per cent YoY to Rs 15,619 crore in Q2FY20.

The group's outstanding debt as on September 30, 2019 stood at Rs 2,91,982 crore compared with Rs 2,87,505 crore as of March 31. Cash and cash equivalents totalled Rs 1,34,746 crore compared with Rs 1,33,027 crore as of March 31, 2019.
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