RIL Q1 profit zooms 28% on 9-year-high refining margin

Posted July 22, 2017

Given the falling crude prices, RIL's gross refining margins are on a tear, with the company clocking an enviable $11.9 per barrel, much above the Singapore's benchmark of $6.4 per barrel during the June quarter.

Mukesh Ambani's Reliance Industries Ltd (RIL) yesterday said its board approved transaction to pick around 25 per cent stake in Balaji Telefilms by acquiring 2.52 crore shares for about Rs 413 crore. Retail business also witnessed accelerated growth momentum with YoY revenue growth of 74%.

On telecom business, RIL said Jio has become the fastest growing technology company in the world with more than 100 million subscribers in just 170 days. "Full commissioning of new PX facility at Jamnagar during the quarter will strengthen the integration within our polyester chain", added Ambani. The company said that during Q1FY18, its revenues from organised retail jumped almost 74% to Rs 11,571 crore from Rs 6,666 crore a year earlier. The oil and gas business saw revenue fall 1.2% to Rs. 1,324 crore, with the division sustaining an operating loss (at EBIT level) of Rs. 373 crore.

Aided by strong refining and petrochemicals margins, oil-to-telecom conglomerate Reliance Industries on Thursday reported a 28 per cent rise to hit its highest quarterly consolidated net profit of Rs 9,108 crore during the June 2017 quarter as against Rs 7,113 crore in the same period last fiscal. "We continue to remain upbeat on the stock". The app already has more than 40 lakh downloads in 80 countries, the company said.

RIL had on 27 June sought shareholders' approval to raise as much as Rs25,000 crore through a private placement of non-convertible debt instruments.

The company has also made a decision to acquire 2.52 crore shares in Balaji Telefilms for Rs 413.28 crore through a preferential issue. Each OCPS shall be either redeemed at Rs. 50 or converted into 5 equity shares of Rs. 10 each at any time at the option of the company, but not later than 10 years from the date of allotment.