Reliance Industries on Friday announced its highest quarterly net profit in over eight years. Fall in oil prices boosted refining and petrochem margins, helping the company post a 16 per cent jump in its earnings at Rs7,398 crore for the three- month period ended March 31.
Consolidated net profit in January-March at Rs7,398 crore or Rs25.1 a share was 15.9 per cent higher than Rs6,381 crore or Rs21.7 per share profit a year ago.
Standalone net profit was 17.25 per cent higher at Rs7,320 crore.
This is the highest quarterly net profit for RIl since it clocked Rs8,079 crore net profit in the third quarter of 2007-08.
RIl, operator of the world’s biggest oil-refinery complex, earned $10.8 for turning every barrel of crude oil into fuel in the fourth quarter of 2015-16 compared with a gross refining margin of $10.1 per barrel a year ago. The GRM outperformed Singapore benchmark by $3.1 a barrel.
Sales, however, dropped 12 per cent to Rs64,569 crore in January-March.
The company posted a record annual net profit at Rs27,630 crore or Rs93.1 per share in 2015-16, up 17.2 per cent over Rs23,566 crore, or Rs80.1 a share.
Turnover was, however, down 23.8 per cent to Rs2,96,091 crore on lower oil prices.
RIl Chairman and Managing Director Mukesh Ambani said the much-talked about 4G telecom and high-speed broadband services will be launched this year. But he did not give a specific date.
“The commercial roll-out of Jio services this year will digitally enable a billion Indians and propel growth for India and Reliance,” he said.
The refining segment of oil-to-telecom conglomerate recorded the highest ever quarterly pre-tax profit (EBIT) of Rs6,394 crore, up 30.4 per year-on-year. Petrochemical EBIT was up 35.4 per cent at Rs2,713 crore.
The two helped offset 84.4 per cent drop in EBIT from oil and gas business at Rs14 crore. “The segment profitability was impacted by lower oil and gas price realisations and decrease in domestic upstream volume. US shale operations were impacted by low commodity prices despite marginally higher volumes,” RIl said.
The company’s retail business saw 17.5 per cent rise in PBDIT at Rs235 crore in Q4 of 2015-16 fiscal. Reliance Retail added 624 stores, taking the total number to 3,245 across 532 cities.
Debt rose to Rs1,81,079 crore from Rs1,78,07 crore as on December 31. Cash balance also rose to Rs86,033 crore as on March 31 as compared to Rs91,736 crore as on December 31.
Interest cost at Rs813 crore in the fourth quarter was higher than Rs677 crore in corresponding period of the previous year due to higher average exchange rates.
“FY 2015-16 has been a year of outstanding achievement for our downstream hydrocarbon businesses, notwithstanding persisting global economic uncertainty.
“Refining and petrochemicals delivered record operating and financial performances. Our refineries sustained double-digit GRMs and record levels of utilization through the year,” Ambani said.
Balanced petrochemical portfolio, across products and feedstocks, helped capture the benefit of vastly improved naphtha cracking economics and favourable polymer markets.
Reliance Retail continued its path of profitable expansion while maintaining a robust revenue growth of 23 per cent during the year.
“looking ahead, we are focused on ensuring a flawless startup and stabilization of the new growth platforms across our hydrocarbon and consumer businesses.