Reliance Industries' third quarter net profit up 5.4%

Andrew Cummings
January 19, 2018

"This quarter marks the culmination of our petrochemical expansion projects and the first positive net profit contribution from our newest business line - Digital Services", said RIL chairman Mukesh Ambani.

As the latest entrant to India's highly competitive telecom sector after its launch in September 2016, Jio shook up the market and sparked a price war by offering free voice calls for life and drastically reduced tariffs.

Revenue, net of GST, rose 12% on quarter to 6,879 cr.

Reliance Jio has reported a profit of Rs 504 crore for the quarter ending December against a loss of Rs 271 crore in the previous quarter.

On a sequential basis, RIL's reported turnover in the December 2017 quarter was up 8.6 percent and net profit was up 16.2 percent.

Gross refining margin came in at United States dollars 11.6 a barrel was in line with CNBC-TV18 poll of USD 11.6 a barrel.

Anshuman Thakur, head of strategy at the Jio telecoms business, said they expected its profits to improve as more subscribers come on board, while costs will not increase in the same proportion.

Jio's average revenue per user (ARPU) stood at Rs 154, even as Bharti Airtel's ARPU declined to Rs 123 during the same period.

At a consolidated level, RIL, which is the country's largest private sector firm, beat estimates with its net profit coming in at Rs 9,423 crore compared with Rs 7,533 crore in the same period a year ago - a growth of 25 per cent.

Reliance Industries Ltd's (RIL's) profit on a standalone basis, which includes the company's refining, petrochemicals and oil and gas exploration businesses, but primarily excludes retail and telecom operations, stood at Rs8,454 crore in the quarter ended 31 December, up from Rs8,022 crore a year earlier.

"Jios strong financial result reflects the fundamental strength of the business, significant efficiencies and right strategic initiatives".

"Petrochemicals segment EBIT was at a record level of Rs 5,753 crore ($901 million) supported by strong volume growth, higher margins for Polypropylene and downstream polyester products", the statement said.

The big-ticket expansion of the petrochemicals business that culminated in the December quarter has paid off handsomely, with the segment's quarterly profit increasing 73 per cent y-o-y to ₹5,753 crore, its highest ever. No.2 Vodafone's India unit and third-ranked Idea Cellular are combining their operations to potentially create the market's biggest player. The company had cash and cash equivalent of ₹78,617 crore as on December 31. Reliance Jio in a statement said it has created a strong data network with infrastructure and backhaul for offering wireless services, wireline services, enterprise offering, IOT services and other digital services.

Other reports by iNewsToday