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Last Updated : Jul 19, 2019 07:39 PM IST | Source: Moneycontrol.com

RIL Q1 results: Here are top 10 takeaways

RIL reported a net profit of Rs 10,104 cr for the quarter ended June 30.

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Reliance Industries Ltd (RIL), the largest company in terms of market capitalisation, posted stellar numbers for the quarter ended June.

Shares of RIL closed 1.01 percent lower at Rs 1,249 ahead of the results announcement.

We have collated a list of top 10 takeaways from RIL's Q1 results:

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Net profit  

RIL reported a net profit of Rs 10,104 cr for the quarter ended June, which was slightly higher than CNBC-TV18 estimate of Rs 9852 crore. Net profit grew by 6.8 percent on a year-on-year basis but fell 2.4 percent on a quarter-on-quarter basis.

Revenue

The consolidated revenues from operations stood at Rs 1.72 lakh crore for the quarter ended June, which was higher than CNBC-TV18 poll of Rs 1.43 lakh crore. Revenues grew by more than 22 percent on a YoY basis and about 12.2 percent sequentially.

Growth in revenue was led by a sharp increase in contribution from digital services and retail business, which recorded an increase of 55 percent YoY and 48 percent YoY respectively.

Higher refinery throughput on a YoY basis contributed to the increase in revenue for the Refining business

GRM

Gross Refining Margins (GRMs) which is what a refiner makes from turning every barrel of crude to fuel stood at $8.10/bbl which is lowest in 18 quarters. GRMs was also slightly lower than the CNBC-TV18 poll of $8.50/bbl. GRMs stood at $10.5/bbl in the March quarter.

Operating Profit

At the operating level, earnings before interest, tax, depreciation, and amortisation (EBITDA) increased by 2 percent year-on-year to Rs 21,315 crore but margin contracted 142bps to 13.6 percent in Q1.

Reliance Jio 

The net profit of Reliance Jio stood at Rs 891 cr for the quarter ended June which was slightly lower than CNBC-TV18 poll of Rs 959 cr. Revenues also disappointed as Q1 revenues stood at Rs 11,679 cr, slightly lower than CNBC-Tv18 poll of Rs 12085 cr.

Jio subscriber additions:

Reliance Jio maintained strong momentum in subscriber addition with gross adds of 33.8 million during the quarter. This translated into revenue and EBITDA growth of 44 percent and 49 percent respectively.

Despite larger consumer base across varying tariff plans, customer engagement continues to improve with higher data usage of 11.4 GB/user/month. VoLTE voice consumption per subscriber per month stands at 821 minutes.

Brookfield deal

Just before the earnings, RIL in a release said that Brookfield is likely to invest Rs 25,215 cr in units by Tower Infra Trust. Reliance Industrial Investment and Holdings holds 51 percent stake in Tower Infra Trust.

Petrochemicals:

The petrochemicals segment includes production and marketing operations of petrochemical products namely, high-density Polyethylene, Low-density Polyethylene, Linear Low-density Polyethylene, etc. fell 6.6 percent on a YoY basis to Rs 37,611 crore for the quarter ended June. RIL reported revenues of Rs 40,287 crore in the year-ago period. It fell 11.3 percent sequentially.

Petrochemicals segment EBIT stood at Rs 7,508 crore ($ 1.1 billion), down 4.4 percent on a Y-o-Y basis. Petrochemicals segment EBIT was primarily affected by lower volumes.

Refining:

Revenues from the refining segment include production and marketing operations of the petroleum products rose 6.3 percent to Rs 101,721 crore for the quarter ended June. The revenues stood at Rs 95,646 crore in the year-ago period. It rose 15.8 percent sequentially.

Higher volumes have contributed to increased revenue, however, R&M performance was impacted by significantly lower product cracks on Y-o-Y basis, said the release.

RIL maintained a significant premium over Singapore complex margins due to product yield optimisation and robust risk management. GRM for 1Q FY20 stood at $ 8.1/bbl, outperforming Singapore complex margins by $ 4.6/bbl.

Organised retail:

Reliance Retail continues to grow faster than every other player. Reliance Retail maintained strong growth momentum through expansion across geographies, formats, and verticals, reflecting in revenue growth of 48 percent YoY and EBITDA growth of 70 percent YoY.

Revenues from the organised retail segment which includes organized retail business in India rose 4.2 percent on a QoQ basis to Rs 38,196 crore for the quarter ended June while on a YoY basis revenues rose by more than 47 percent.

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First Published on Jul 19, 2019 07:30 pm
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