Reliance Industries Q2 consolidated net up 12.5% at Rs 8,109 cr

Mumbai, Oct 13 (IANS) Reliance Industries Limited's (RIL) consolidated net profit increased by 12.5 per cent to Rs 8,109 crore for the second quarter (July-September) of 2017-18, the company said on Friday.

The company's revenue increased by 23.9 per cent to Rs 101,169 crore for the same period, the company said in a statement.

"Our company reported another quarter of robust performance. I am delighted to share that this includes the financial performance of Reliance Jio which had a positive EBIT (earnings before interest and taxes) contribution in its first quarter of commercial operations," said Mukesh D. Ambani, Chairman and Managing Director, RIL.

"The results also reflect strong underlying fundamentals of our refining and petrochemicals businesses. Sustained demand growth coupled with supply disruptions further tightened demand supply balances globally during the quarter. The benefits of optimizing our business through new projects are beginning to emerge. The structural strength in energy and materials business environment augurs well for our new capacities which are coming on-line this year," he added.

Ambani said the group's retail business has delivered broad based, sustainable and profitable growth through improved operational excellence.

Reliance Jio, the wholly-owned subsidiary of RIL, posted standalone revenue from operations of Rs 6,147 crore for the second quarter.

"The world is transforming, turning digital and India is not going to be left behind. India is ready to go digital, move from voice to data and Jio is creating the foundation of data for the next generation business. The rapid uptake of Jio services reflects the latent need of th" society," he said.

The subscriber base of the company as on September 30, 2017 stood at 138.6 million. Net subscriber addition during the quarter was at 15.3 million.

Total wireless data traffic during the quarter was at 378 crore GB and average voice traffic during the quarter at 267 crore minutes per day, the statement said.

"We are confident that Jio will bring significant benefits to the Indian economy and the Indian customers and will take India to a much higher pedestal. We are focussed on providing multi-layered digital services on top of the basic connectivity service to optimally utilise our world class infrastructure," Ambani said.

"The strong financial results of Jio demonstrates the robust business model of Jio and the significant efficiencies that the Company has built through its investment in the latest 4G technology and right business strategy. As always, the Group has demonstrated excellence in execution, vision and commercial acumen," he added.

The company statement said increase in revenue is primarily on account of increase in prices and volumes in refining, petrochemical and retail businesses.

Revenue from the refining and marketing segment during the July-September quarter at Rs 69,766 crore increased 15.3 per cent over the same quarter last year. Earnings before interest and taxes (EBIT)in the segment increased by 10.8 per cent year on year to Rs 6,621 crore "aided by higher volumes and strong transportation fuel cracks", RIL said.

RIL achieved a gross refining margin (GRM) of $12 on converting each barrel of crude to products during the quarter, as against a GRM of $10.l per barrel in the second quarter a year ago.

"We have had record segment EBIT in both refining and petrochemicals owing to better volumes and prices. GRM in the quarter at $12 per barrel is at a 9-year high" RIL Chief Financial Officer Alok Agarwal said.