Reliance Industries net profit in the quarter ended December 2019 rose 13.5 per cent to Rs 11,640 crore, its highest quarterly profit ever, the oil-to-telecom conglomerate said in a stock exchange filing on Friday. Reliance Industries’ revenue from operations declined 2.5 per cent to Rs 1,56,802 crore. Quarterly profit – which trumped the record Rs 11,262 crore in the prior quarter – was also higher than analysts’ average expectation of Rs 11,432 crore, according to Refinitiv data news agency, Reuters reported.
Reliance Industries record profit came as it benefited from steady double-digit growth at its consumer-facing units.
“The third quarter results for our energy business reflects the weak global economic environment and volatility in energy markets.Within our O2C chain, downstream petrochemicals profitability was impacted by weak margins across products with subdued demand in well-supplied markets. Refining segment performance improved in a difficult operating environment given our continuous focus on cost positions, high operating rates and product placement,” said Mukesh Ambani, chairman and managing director of Reliance Industries.
Reliance Industries’ gross refining margins (GRM) – a measure of how much the company has earned by refining a barrel of crude oil- declined to $9.2 per barrel from $9.4 per barrel in the previous quarter.
“I am pleased with the progress of our consumer businesses which continue to establish new milestones every quarter. We saw consistent same store sales growth and record footfall across our stores driven by our compelling proposition of great shopping experience and superior value,” Mr Ambani said.
“Jio is focused on giving unmatched digital experience to consumers on a nationwide basis at most affordable price, and accordingly expanding network capacity and coverage to keep pace with demand. We are making good progress on the value unlocking initiatives announced earlier while building on sustainable growth platforms for our shareholders,” Mr Ambani added.
The net profit of Reliance Jio Infocomm, the telecom arm of Reliance Industries, rose 62 per cent to Rs 1,350 crore in December quarter, Reliance Industries said. Reliance Jio’s revenue rose 28 per cent to Rs 13,968 crore.
Its average revenue per user (ARPU) – a key metric of profitability for telecom operators – came in at Rs 128.4 per month, as against Rs 120 per month in the previous quarter.
Revenue for its retail venture – Reliance Retail Ventures Limited rose 27.4 per cent to Rs 45,327 crore and its profit more than doubled to Rs 1,757 crore.
Reliance Industries’ shares rose 2.8 per cent to close at Rs 1,580.65 on the BSE ahead of earnings announcement.