Reliance Industries Q3FY19 Results: 6 key takeaways from Mukesh Ambani's RIL

Reliance Industries recorded a consolidated net profit of Rs 10,251 crore in December 2018 (Q3FY19) quarter,  which was higher by 8.8% compared to net profit of Rs 9,420 crore a year ago same period. Consolidated revenue from operations stood at Rs 171,336 crore in Q3FY19, registering growth of whopping 55.9% as against Rs 109,905 crore in the same period of previous year. 

Mukesh D. Ambani, Chairman & Managing Director, Reliance Industries Limited said: “In our endeavor to consistently create more value for our country and stakeholders, our company has become the first Indian private sector corporate to cross Rs 10,000 crore quarterly profits milestone."

Here are few key takeaways from RIL's Q3FY19 result.

Consolidated Quarterly Performance: 

• Revenue increased by 55.9% to Rs 171,336 crore ($ 24.6 billion)
• PBDIT increased by 20.0% to Rs 23,801 crore ($ 3.4 billion)
• Profit Before Tax increased by 9.3% to Rs 14,445 crore ($ 2.1 billion)
• Cash Profit increased by 10.7% to Rs 16,727 crore ($ 2.4 billion)
• Net Profit increased by 8.8% to Rs 10,251 crore ($ 1.5 billion)

Standalone Quarterly Performance:

• Revenue increased by 37.7% to Rs 108,561 crore ($ 15.6 billion)
• Exports increased by 35.2% to Rs 62,378 crore ($ 8.9 billion)
• PBDIT increased by 10.4% to Rs 16,963 crore ($ 2.4 billion)
• Profit Before Tax increased by 1.5% to Rs 11,972 crore ($ 1.7 billion)
• Cash Profit increased by 1.8% to Rs 12,134 crore ($ 1.7 billion)
• Net Profit increased by 5.6% to Rs 8,928 crore ($ 1.3 billion)
• Gross Refining Margin (GRM) of $ 8.8/bbl for the quarter

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Refining and marketing business:

3Q FY19 revenue from the Refining & Marketing segment increased by 47.3% Y-o-Y to Rs 111,738 crore ($ 16.0 billion) while Segment EBIT declined by 18.0% Y-o-Y to Rs 5,055 crore ($ 724 million).R&M segment performance was impacted by a sharp decline in light distillate product cracks on Y-o-Y basis. This was partly offset by strength in middle distillate cracks on Y-o-Y basis. 

RIL maintained a significant premium over Singapore complex margins due to product yield optimization and robust risk management. GRM for 3Q FY19 stood at $ 8.8/bbl, outperforming Singapore complex margins by $ 4.5/bbl.

Petrochemicals Business:

3Q FY19 revenue from the Petrochemicals segment increased by 37.1% Y-o-Y to Rs 46,246 crore ($ 6.6 billion) due to increase in price realizations and volumes primarily in polymer products and fibre intermediates. Petrochemicals segment EBIT was at Rs 8,221 crore ($ 1.2 billion), up 42.9% Y-o-Y. 

Strong volume growth and robust polyester chain margins offset the impact of weaker polymer margins. Y-o-Y volume growth was led by successful stabilization of the world’s largest ROGC, its downstream units and new PX facility at Jamnagar.

Oil & Gas Business:

3Q FY19, revenue for the Oil & Gas segment decreased by 27.5% Y-o-Y to Rs 1,182 crore. Segment EBIT at Rs (185) crore as against Rs (291) crore in the corresponding period of the previous year. The segment performance continued to be impacted by declining volume. Domestic production was lower at 13.2 BCFe, down 33% Y-o-Y whereas production in US Shale operations declined by 37% to 21.2 BCFe.

Retail Business:

Revenue for 3Q FY19 grew by 89.3% Y-o-Y to Rs 35,577 crore from Rs 18,798 crore. Healthy festive season sales and new store openings resulted in another robust quarter. Reliance Retail further consolidated its leadership position and is India’s largest, most profitable and fastest growing retailer.

Segment EBIT rose by 210.5% Y-o-Y to Rs 1,512 crore from Rs 487 crore demonstrating strong operating profit during the quarter. EBIT margin for the segment improved by 160 bps to 4.2% reflecting scale benefits. Retail now has 9,907 stores with reach across 6,400+ towns and cities.