Reliance Industries shares rallied 6 percent during the quarter ended September 2019 while it surged 26 percent year-to-date.
Reliance Industries (RIL) reported the highest-ever quarterly consolidated profit of Rs 11,262 crore in Q2FY20, beating analyst expectations.
Profit grew 11.46 percent sequentially and 18.34 percent on year-on-year (YoY) basis. The growth was partly supported by higher other income and lower tax cost.
Consolidated revenue increased 3.63 percent YoY to Rs 148,526 crore in the quarter ended September 2019, but fell 5.4 percent sequentially.
"The Company has reported a record net profit for the quarter. These excellent results reflect the benefits of our integrated Oil to Chemicals (O2C) value chain and the rapid scale-up of our consumer businesses," Mukesh Dhirubhai Ambani, Chairman and Managing Director said.
During this quarter, O2C businesses gained from favourable fuel margins environment, feedstock sourcing flexibility and higher petrochemicals volumes, he added.
Gross refining margin came in at $9.4 a barrel for the quarter, against $8.1 a barrel in June quarter. It was lower than a CNBC-TV18 poll of analysts which was pegged at $9.5 a barrel.
"Refining margins improved QoQ on the back of strengthening light and middle distillate and FO cracks," company said. The benchmark Singapore Complex Margin averaged $6.5 a barrel in Q2FY20 as compared to $3.5 a barrel in Q1FY20 and $6.1 a barrel in Q2FY19.
The stock gained 1.37 percent to end at a record closing high of Rs 1,415.30 on Friday, ahead of September quarter results and crossed market capitalisation of Rs 9 lakh crore intraday, becoming the most valued listed company in India. It rallied 6 percent during the quarter ended September 2019 while it surged 26 percent year-to-date.
At the operating level, earnings before interest, tax, depreciation and amortisation (EBITDA) increased 3.9 percent sequentially to Rs 22,152 crore and margin expanded 130 basis points (bps) QoQ to 14.91 percent in the quarter ended September 2019.
Overall numbers were a mixed bag. Profit was estimated at Rs 10,803 crore on revenue of Rs 1.55 lakh crore and EBITDA of Rs 22,269 crore and margin at 14.3 percent for the quarter, according to a poll of analysts conducted by CNBC-TV18.
On the segment front, refining business, which contributed 65 percent of total operating revenue, registered a 4.4 percent sequential degrowth at Rs 97,229 crore during the quarter, but EBIT grew 10 percent and margin increased by 70 bps QoQ.
Petrochemical segment revenue grew 2.5 percent quarter-on-quarter (QoQ) to Rs 38,538 crore and at an operating level, the EBIT increased 1.3 percent but margin contracted 30 bps QoQ in September quarter.
Reliance Jio has become India's largest mobility services provider with the highest market share in terms of 4G subscriber base and 4G data traffic in India, Mukesh Ambani said.
"Jio is still adding more than 1 crore new customers every month and is now geared to kick-start other growth engines," he added.
Jio registered a healthy 11.1 percent sequential growth in second quarter profit at Rs 990 crore on revenue of Rs 12,354 crore that increased by 5.8 percent QoQ, boosted by Diwali plan.
Its total subscriber base increased by 7.2 percent QoQ to 355.2 million at the end of September quarter after adding 24 million users during the quarter (against 24.5 million addition in Q1FY20).
"JioPhone Diwali 2019 plan (marketed by Reliance Retail) offering the device at Rs 699 (without an exchange of old device) has witnessed a strong response in first few weeks," Reliance said in its BSE filing.
Jio's EBITDA grew by 10.2 percent sequentially to Rs 5,166 crore and margin increased 170 bps to 41.8 percent in quarter ended September 2019. Average revenue per user for the quarter stood at Rs 120 against Rs 122 in June quarter.
Ambani said Reliance Retail delivered robust performance with record quarterly revenues and EBITDA in Q2.
Company's organised retail segment reported a 7.87 percent QoQ growth (up 27 percent YoY) in revenue at Rs 41,202 crore and 13.32 percent increase QoQ (up 67 percent YoY) in EBITDA at Rs 2,322 crore for the quarter. Its EBIT grew by 14.5 percent QoQ and margin expanded 29 bps.
Reliance Retail added 337 stores in Q2, taking total store count now to 10,901 at the end of September quarter.
The outstanding debt at the end of September 2019 was Rs 291,982 crore compared to Rs 287,505 crore as of March 2019 while cash and cash equivalents were at Rs 134,746 crore against Rs 133,027 crore during the same period.Disclaimer: Reliance Industries Ltd, which also owns Jio, is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.