INSUBCONTINENT EXCLUSIVE:
MUMBAI: Reliance Industries (RIL) reported a 13.5% rise in quarterly net profit, buoyed by strong performance of its consumer-facing
businesses and robust refining margins, which made up for a fall in income from its petrochemicals business, a major contributor to the
transaction was unlikely to be finalised in the current fiscal year.
Consolidated net profit for the December quarter rose to a record Rs
11,640 crore while revenue fell1.4% to Rs 1,68,858 crore because of weaker prices of oil and chemicals
On a standalone basis, net profit rose 7.4% to Rs 9,585 crore while revenue fell 13.1% to Rs 93,741 crore.
Telecom venture Reliance Jio
Infocomm shone with net profit rising 62.5% to Rs 1,350 crore
Its subscriber base grew 32% annually to 370 million, with each user spending an average of Rs 128.4 a month during the quarter, the company
Chairman Mukesh Ambani said he was pleased with the performance of consumer businesses although other segments faced challenges
Within our O2C chain, downstream petrochemicals profitability was impacted by weak margins across products with subdued demand in
billion) compared with Rs 2,87,505 crore at the end of March last year, the company said
However, cash and cash equivalents rose to Rs 1,53,719 crore from Rs 1,33,027 crore over the same period, implying a fall in net debt.
Joint
CFO V Srikanth said debt would fall as earnings were rising and capex was declining
rose 58% to Rs 2,389 crore
Revenue from refining and marketing fell 7.2% to Rs 1,03,718 crore but segment EBIT rose 12% to Rs 5,657 crore because it processed more
crude oil, earning $9.2 for each barrel it refined, up from $8.8 a year ago.
The petrochemicals business took a hit
EBIT contracted 28.5% toRs 5,880 crore, while segment revenue fell 19.1% to Rs 36,909 crore
While demand for products remains good, the company said ethylene prices weakened and reached near 10-year low with ample supply after the
startup of new export facility in US and new ethane-based crackers in US
However, propylene prices firmed up 2% because of tighter regional availability
Polymer prices also weakened.
Srikanth said it would take 12-18 months for petrochemical prices to improve
In its domestic exploration and production business, revenue fell 10% to Rs 542 crore while EBIT fell to Rs 56 crore from Rs 119 crore
The segment has been lacklustre in recent years, but new fields being developed in the KG Basin are expected to turn it around when they
start pumping gas later in 2020.