RIL Q2 FY2019-20 result beats analysts' expectations, registers highest ever quarterly profit

RIL Q2 FY2019-20 results: Reliance Industries (RIL) today reported the highest ever quarterly consolidated profit of Rs 11,262 crore in Q2FY20, thereby beating expectations of analysts. The company's consolidated revenue increased by 4.8% to Rs 163,854 crore($23.1 billion), while its profit grew by 11.46% sequentially and the growth on year-on-year (YoY) basis stood at 18.34%, acording to the RIL statement. The growth has been supported by refining, telecom and retail segments besides other income and lower tax cost.

Commenting on the results, Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries Limited said: “The Company has reported record net profit for the quarter. These excellent results reflect benefits of our integrated Oil to Chemicals (O2C) value chain and the rapid scale-up of our Consumer businesses. During this quarter, our O2C businesses gained from favourable fuel margins environment, feedstock sourcing flexibility and higher petrochemicals volumes. Our O2C business, with new partnerships, is best placed to pursue growth and substantial value creation."

"Continuing growth trends in our retail business is heartening. Guided by our obsession to provide the best value for our customers, Reliance Retail delivered robust performance with record quarterly revenues and EBITDA. Our digital services business is recognized for having the nation’s widest 4G wireless network. As an outcome of our team’s relentless efforts, Jio has become India’s largest mobility services provider. Jio today also has the highest market share in terms of 4G subscriber base and 4G data traffic in India. We are now executing yet another game changing initiative with the largest ever roll out of broadband services to home and enterprises through JioFiber. As always, we are committed to bring to Indian consumers more world-class products and services and providing them unique value propositions through innovation and technology,” he added.

According to the statement, RIL achieved revenue of Rs 163,854 crore ($23.1 billion), an increase of 4.8% as compared to Rs156,291 crore in the corresponding period of the previous year. Increase in revenue is primarily on account of robust growth in Retail & Digital Services businesses which grew by 27% and 43%, respectively. This was partially offset by decrease in Refining and
Petrochemicals segment revenue with 17.7% fall in Brent crude price.

Exports (including deemed exports) from RIL’s India operations were lower by 12.1% at Rs 53,161 crore ($ 7.5 billion) as against Rs 60,460 crore in the corresponding period of the previous year primarily due to lower price realization for refining and petrochemical products and emphasis in domestic placement.

Other expenditure increased by 22.2% to Rs 22,993 crore ($ 3.2 billion) as against Rs 18,809 crore in corresponding period of the previous year primarily due to higher network operating expenses and regulatory charges.

Segment EBITDA increased by 7.1% to Rs 23,169 crore ($ 3.3 billion) from Rs 21,641 crore in the corresponding period of the previous year. Robust growth in contribution from Retail up 67% Y-o-Y and Digital services up 48% Y-o-Y led to increase in segment EBITDA.

Profit after tax was higher by 18.3% at Rs 11,262 crore ($ 1.6 billion) as against Rs 9,516 crore in the corresponding period of the previous year. The capital expenditure for the quarter ended 30th September, 2019 was Rs 19,095 crore ($ 2.7 billion) including exchange rate difference.

HIGHLIGHTS OF QUARTER’S PERFORMANCE (STANDALONE - RIL)
• Revenue decreased by 8.4% to Rs94,446 crore ($ 13.3 billion)
• Exports decreased by 12.1% to Rs 53,161 crore ($ 7.5 billion)
• PBDIT increased by 2.3% to Rs17,295 crore ($ 2.4 billion)
• Profit Before Tax increased by 4.4% to Rs12,255 crore ($ 1.7 billion)
• Cash Profit increased by 7.5% to Rs13,020 crore ($ 1.8 billion)
• Net Profit increased by 9.5% to Rs9,702 crore ($ 1.4 billion)
• Gross Refining Margin (GRM) of $9.4/bbl for the quarter
• Refining Throughput of 16.7 MMT during the quarter
• Petchemicals Production of 9.9 MMT during the quarter

HIGHLIGHTS OF QUARTER’S PERFORMANCE (CONSOLIDATED - RJIL)
• Revenue increased by 33.1% to Rs 14,562 crore ($ 2.1 billion)
• PBDIT increased by 44.4% to Rs 5,188 crore ($ 0.7 billion)
• Profit Before Tax increased by 45.2% to Rs 1,525 crore ($ 0.2 billion)
• Cash Profit increased by 31.1% to Rs 3,109 crore ($ 0.4 billion)
• Net Profit increased by 45.4% to Rs 996 crore ($ 0.1 billion)
• Subscribers 355.2 million, up 40.8%
• ARPU during the quarter of Rs 120 per subscriber per month
• Data traffic of 1,202 crore GB, up 55.9% and voice traffic of 81,262 crore minutes, up 52.2%

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HIGHLIGHTS OF QUARTER’S PERFORMANCE (CONSOLIDATED - RRVL)
• Revenue increased by 27.0% to Rs 41,202 crore ($ 5.8 billion)
• PBDIT increased by 66.8% to Rs2,322 crore ($ 0.3 billion)
• Profit Before Tax increased by 53.4% to Rs1,750 crore ($ 0.2 billion)
• Cash Profit increased by 69.4% to Rs 2,431 crore ($ 0.3 billion)
• Net Profit increased by 55.8% to Rs 1,148 crore ($ 0.2 billion)
• 10,901 stores with an area of 24.5 million square feet, up 25%
• 337 new stores opened during the quarter
• 154 million footfalls during the quarter, up 11.6%