Reliance Industries Q2 result key takeaways: From petrochem, telecom to media, check top 6

Reliance Industries Q2 result key takeaways: RIL reported its highest ever quarterly net profit of Rs 9,516 crore, a 17.4 per cent rise year-on-year, for the July-September period today due to strong growth in its petrochemicals segment. It's net profit stood at Rs 8,109 crore in the second quarter of the previous fiscal, the company said in a statement, adding that the revenue rose 54.5 per cent to Rs 156,291 crore during the said quarter. 
 
The key takeaways of the conglomerate, whose businesses include refining, petrochemicals, retail and telecommunications, are: 
 
1. REFINING & MARKETING BUSINESS 
 
2Q FY19 revenue from the Refining & Marketing segment increased by 41.6% Y-o-Y to Rs 98,760 crore ($ 13.6 billion) while Segment EBIT declined by 19.6% Y-o-Y to Rs 5,322 crore ($ 734 million). R&M performance was impacted by significantly higher crude price (up 47% Y-o-Y), tighter light-heavy differential and adverse movement in light distillate cracks on Y-o-Y basis and shutdown of Fluid Catalytic Cracking Unit (FCC). GRM for 2Q FY19 stood at $ 9.5/bbl, outperforming Singapore complex margins by $ 3.4/bbl. 
 
2. PETROCHEMICALS BUSINESS 
 
2Q FY19 revenue from the Petrochemicals segment increased by 56.2% Y-o-Y to Rs 43,745 crore ($ 6.0 billion) due to increase in volumes and price realizations. Petrochemicals segment EBIT was at a record level of Rs 8,120 crore ($ 1.1 billion) supported by strong Y-o-Y volume growth led by successful stabilization of the world’s largest ROGC, its downstream units and new PX facility. Sharp increase in segment performance also reflects improvement in the integrated polyester chain margins partly offset by the softer polymer margins. 
 
3. OIL AND GAS (EXPLORATION & PRODUCTION) BUSINESS 
 
2Q FY19, revenue for the Oil & Gas segment decreased by 12.0% Y-o-Y to Rs 1,322 crore. Segment EBIT at Rs (480) crore was impacted by lower volumes due to natural decline. On Y-o-Y basis, domestic production declined by 25.5% to 15.3 Bcfe and production in US Shale operations declined by 31.4% to 23.8 Bcfe. US Shale unit realization was $ 4.06/MCFe, up 0.2% Q-o-Q with Henry Hub prices. 
 
4. ORGANIZED RETAIL BUSINESS 
 
Revenue for 2Q FY19 grew by 121.5% Y-o-Y to Rs 32,436 crore from Rs 14,646 crore. Accelerated store expansion, strong value proposition and focus on customer experience across all consumption baskets has resulted in this robust growth. Segment EBIT rose by an unprecedented 272.5% Y-o-Y to Rs 1,244 crore from ₹ 334 crore demonstrating strong operating profit during the quarter. Retail now has 9,146 stores with reach across 5,800+ towns and cities. 
 
5. MEDIA BUSINESS 
 
Network18 Media & Investments Limited reported 2Q FY19 consolidated revenue of Rs 1,237 crores (up 9% Y-o-Y on a comparable basis). Operating EBITDA margin rose to 7.4% (+230 bps Y-o-Y); though EBIT at Rs (2) crores was impacted by fair valuation of financial assets. Broadcast subsidiary TV18 posted 17% revenue growth ex-movies, led by improving advertising environment driving ~18% growth, and a 16% growth in subscription revenue. The News channel portfolio maintained its pole position in viewership. Gestation losses from Regional News shrunk 70% Y-o-Y. The Entertainment cluster’s Business-as-usual operating margins expanded to 12.1% from 8.9%, primarily driven by Regional General Entertainment Channels (GEC) performance. 

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6. RELIANCE JIO

Mukesh Ambani's newest company, Reliance Jio posted standalone revenue from operations of Rs 9,240 crore (13.9% QoQ growth) for the July-September period. RIL also declared that it will acquire 66% stake in Den Networks for Rs 2,290 crore and 51.3% in Hathway Cable for Rs 2,940 crore. Jio has already started work on connecting 50 million homes across 1,100 cities. It will work together with Hathway and DEN and all the LCOs to offer a quick and affordable upgrade to a world-class line-up of JioGigaFiber and Jio Smart-Home Solutions to the 24 million existing cable connected homes of these companies across 750 cities. This will accelerate Jio’s commitment to connect 50 million homes with JioGigaFiber in the shortest possible time.