Reliance Q3FY18 standalone net profit up 5% yoy; RJio sees first profit in this quarter

Mukesh Ambani's Reliance Industries (RIL) posted over 5% year-on-year (YoY) rise in it's standalone net profit for third quarter ended December 31, 2017. 

RIL reported standalone net profit of Rs 8,454 crore in Q3FY18, up by 5.38% from Rs 8,022 crore in the corresponding period of the previous year. Q3FY18 net profit also grew by 2.28% as against Rs 8,265 crore in the preceding quarter. 

Standalone revenue from operations stood at Rs 75,913 crore in Q3, witnessing growth of 13.97% from Rs 66,606 crore in Q3FY17 and higher by 5.78% versus Rs 71,761 crore in Q2FY18. 

A Bloomberg poll of experts estimated RIL's revenue and net profit in Q3FY18, to come in at Rs 8,450 crore and Rs 85,070 crore respectively.

For the nine months period in FY18, RIL's standalone revenue grew by 14.53% to Rs 218,108 crore as compared to Rs 190,443 crore in the similar period of the previous year. While net profit rose by 7.05% to Rs 24,915 crore in 9MFY18 from Rs 23,274 crore a year ago same period. 

On consolidated basis, RIL recorded revenue of Rs 102,500 crore - growing by 21.74% year-on-year (YoY) and 7.80% quarter-on-quarter (QoQ) basis respectively. While net profit came in at Rs 9,445 crore - increasing by 25.53% yoy and 16.64% qoq. 

Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries Limited said: “I am happy to share record-setting consolidated quarterly earnings to mark the 40th anniversary of Reliance’s listing in January 1978. Fittingly, this quarter marks the culmination of our petrochemical expansion projects and the first positive net profit contribution from our newest business line – Digital Services."

Under consolidated revenue wise break-up in Q3FY18, petrochemical business grew by a whopping 47.57% yoy to Rs 33,726 crore, while refining business increased by 22.97% to Rs 75,865 crore, oil & gas business up by 34.23% yoy to Rs 1,631 crore and others business by 50.02% yoy to Rs 3,026 crore. 

Ambani added, "Our refining business has delivered 12 consecutive quarter of double-digit refining margins, demonstrating operating excellence and healthy industry fundamentals. Benefits of the large investments in petrochemical business are beginning to show with the segment reporting its highest ever earnings."

It needs to be noted that, RIL's organised retail segment grew by a huge 116.36% yoy to Rs 18,798 crore in Q3FY18, while it's digital services business increased by a massive 5753.23% yoy to Rs 8,136 crore in the same period. 

Meantime, consolidated EBITDA (operating profit) grew by 39.4% to Rs 19,845 crore ($3.1 billion). Cash profit of RIL stood at Rs 15,116 crore ($2.4 billion) up 42.6% yoy. 

Outstanding debt as on  December 2017 of RIL was at Rs  213,206 crore ($ 33.4 billion) compared to Rs 196,601 crore as on 31st March 2017.

Cash and cash equivalents as on December 2017 of RIL were at Rs  78,617 crore ($ 12.3 billion) compared to Rs  77,226 crore as on 31st March 2017. These were in bank deposits, mutual funds, CDs,
Government Bonds and other marketable securities. 

Talking on it's telecom arm, Ambani said, "Jio’s strong financial result reflects the fundamental strength of the business, significant efficiencies and right strategic initiatives. Jio has demonstrated that it can sustain its strong financial performance."

Reliance Jio in Q3FY18, posted revenue of Rs 6,879 crore up 11.9% qoq, while net profit came in at Rs 504 crore in Q3 compared to net loss of Rs 271 crore in previous quarter. 

RJio's operating profit stood at Rs 2,628 crore up 82.1% qoq, while operating profit margin came in at 38.2% in Q3FY18 versus 23.5% in Q2FY18. 

As on December 2017, RJio's subscriber base was 160.1 million, and gross subscriber addition in the quarter was 27.8 million, while net subscriber addition was 21.5 million. 

ARPU of RJio is Rs 154 per subscriber per month. Also, total wireless data traffic was 431 crore GB (with 9.6GB per subscriber per month)

Here are keyhighlight of RJio in Q3FY18: 

• Jio continues to remain the fastest growing digital services company
• Jio subscribers continue to demonstrate high activity level with average data consumption per user per month of 9.6 GB and average voice consumption of 694 minutes per user per month; these are both highest in the industry and substantially higher than other operators
• Video consumption has crossed 200 crore hours per month on the network
• Customer churn at 1.4% per month is the lowest in the industry
• JioPhone has been launched successfully in the market
• Jio tariff plans offer highest value to customers 

Ambani said, "We are excited about the prospects of both our energy and consumer businesses due to strong growth in Indian markets and constructive macro environment.”