Reliance IndustriesRevenue increased by 22.1% to 172,956 crore ($ 25.1 billion)

nation
By Admin

RECORD QUARTERLY CONSOLIDATED REVENUE OF ` 172,956 CRORE ($ 25.1 BILLION), UP 22.1 %
RECORD QUARTERLY STANDALONE NET PROFIT OF ` 9,036 CRORE ($ 1.3 BILLION), UP 2.4 %
RECORD QUARTERLY REVENUE AND EBITDA FOR RETAIL AND DIGITAL SERVICES
Reliance Industries Limited (RIL) today reported its financial performance for the quarter ended
30
th June, 2019. Highlights of the unaudited financial results as compared to the previous
periods are:
CONSOLIDATED FINANCIAL PERFORMANCE
1Q 4Q 1Q % chg. % chg.
(In ` Crore) FY20 FY19 FY19 w.r.t. w.r.t.
4Q FY19 1Q FY19
Revenue 172,956 154,110 141,699 12.2% 22.1%
PBDIT 24,486 24,047 22,449 1.8% 9.1%
Net Profit* 10,104 10,362 9,459 (2.5%) 6.8%
EPS (`) 17.1 17.5 16.0 (2.5%) 6.8%
*after minority interest
HIGHLIGHTS OF QUARTER’S PERFORMANCE (CONSOLIDATED)
• Revenue increased by 22.1% to ` 172,956 crore ($ 25.1 billion)
• PBDIT increased by 9.1% to ` 24,486 crore ($ 3.5 billion)
• Profit Before Tax increased by 4.7% to ` 14,366 crore ($ 2.1 billion)
• Cash Profit increased by 1.8% to ` 16,184 crore ($ 2.3 billion)
• Net Profit increased by 6.8% to ` 10,104 crore ($ 1.5 billion)

HIGHLIGHTS OF QUARTER’S PERFORMANCE (STANDALONE)
• Revenue decreased by 3.0% to ` 96,384 crore ($ 14.0 billion)
• Exports decreased by 4.5% to ` 50,158 crore ($ 7.3 billion)
• PBDIT decreased by 1.4% to ` 16,985 crore ($ 2.5 billion)
• Profit Before Tax decreased by 1.7% to ` 12,109 crore ($ 1.8 billion)
• Cash Profit decreased by 5.9% to ` 11,842 crore ($ 1.7 billion)
• Net Profit increased by 2.4% to ` 9,036 crore ($ 1.3 billion)
• Gross Refining Margin (GRM) of $ 8.1/bbl for the quarter
CORPORATE HIGHLIGHTS FOR THE QUARTER (1Q FY20)
• Reliance Industries Limited (RIL) and BP announced the sanction of the MJ project (also known
as D55) in Block KG D6, offshore the east coast of India. MJ is the third of three new projects in
the Block KG D6 integrated development plan and its approval follows sanctions for the
development of ‘R-Series’ deep-water gas field in June 2017 and for the Satellites cluster in April
2018. Together the three projects are expected to develop a total of about 3 trillion cubic feet (tcf)
of discovered gas resources with a total investment of circa ` 35,000 crore (US$5 billion). These
projects together, when fully developed, will bring about 1 billion cubic feet a day of new domestic
gas onstream, phased over 2020-2022.
• Reliance Ethane Holding Pte. Ltd. (“REHPL”) {incorporated in Singapore, a wholly owned
subsidiary of Reliance Industries Limited (“RIL”), having 100% holding in six limited liability
companies (LLCs) which own Very Large Ethane Carriers (“VLEC” or the “Vessel”)}, Mitsui O.S.K
Lines Ltd. (“MOL”) of Japan and a strategic minority investor signed binding definitive agreements
for a strategic investment by MOL and minority investor in the six special purpose limited liability
companies (“SPVs”), each owning a VLEC. MOL and the strategic minority investor have
completed their strategic investment in the SPVs.
• Reliance Brands Limited (RBL), a subsidiary of the Company, completed the acquisition of 100%
stake of Hamleys Global Holdings Limited (HGHL), through a special purpose vehicle company
Registered Office: Corporate Communications Telephone : (+91 22) 2278 5000
Maker Chambers IV Maker Chambers IV Telefax : (+91 22) 2278 5185
3rd Floor, 222, Nariman Point 9th Floor, Nariman Point Internet : www.ril.com
Mumbai 400 021, India Mumbai 400 021, India CIN : L17110MH1973PLC019786
Page 3 of 33
set up in United Kingdom for a cash consideration of GBP 67.96 million. This acquisition will
establish RBL as a major player in the global toy retail industry.
BACKDROP AND KEY OPERATING HIGHLIGHTS:
Operating environment for both downstream businesses, refining and petrochemicals, has been
challenging for the previous six quarters. 1Q FY20 was particularly tougher with geopolitical
pressures exacerbating crude markets. New supplies, global economic slowdown and trade
tensions weighed on product prices and margins.
Reliance’s business model enables it to deliver industry leading profitability despite macro
headwinds. Its unique business architecture captures margins within and across hydrocarbon
product chain. This is further boosted through appropriate choice of technology, robust automation
and world-scale operations which gives Reliance among the best cost positions across its product
portfolio. During this quarter, efficient crude and feedstock sourcing, optimizing product yields and
maximizing margin capture through chain integration helped Reliance’s downstream businesses
deliver resilient performance with near flat EBITDA on Q-o-Q basis.
Despite a slowdown in the FMCG and consumer sector, Reliance Retail continues to grow faster
than every other player. Reliance Retail maintained strong growth momentum through expansion
across geographies, formats and verticals, reflecting in revenue growth of 48% YoY and EBITDA
growth of 70% YoY. Reliance’s growth has been aided by optimum customer value proposition
and deep insights into consumer preferences which drives appropriate segmentation and targeting
strategy. During the quarter, Reliance Retail crossed the milestone of 100 million register
customers and 150 million footfalls, establishing its position as the most preferred retailer in India.
Customer centric approach, sourcing and operating cost advantage and benefit of operating
leverage helped Reliance Retail deliver record EBITDA for the quarter.
Reliance Jio maintained strong momentum in subscriber addition with gross adds of 33.8 million
during the quarter. This translated into revenue and EBITDA growth of 44% and 49% respectively.
Despite larger consumer base across varying tariff plans, customer engagement continues to
Registered Office: Corporate Communications Telephone : (+91 22) 2278 5000
Maker Chambers IV Maker Chambers IV Telefax : (+91 22) 2278 5185
3rd Floor, 222, Nariman Point 9th Floor, Nariman Point Internet : www.ril.com
Mumbai 400 021, India Mumbai 400 021, India CIN : L17110MH1973PLC019786
Page 4 of 33
improve with higher data usage of 11.4 GB/user/month. VoLTE voice consumption per subscriber
per month stands at 821 minutes.
Reliance has entered into an agreement with Brookfield for investment of ₹ 25,215 crore in the
Tower Infrastructure Trust. This is the single largest foreign investment in an Indian infrastructure
vehicle and is a testimony from one of the largest infrastructure players globally, for the quality of
assets created by Jio.
This is also a significant step forward in optimizing the capital structure of the digital and
infrastructure businesses. The transaction validates the value unlocked through spin-off of passive
infrastructure assets of Jio through the InVIT structure.
Consumer businesses now contributes 32% of the consolidated segment EBITDA for the quarter.
Commenting on the results, Mukesh D. Ambani, Chairman and Managing Director, Reliance
Industries Limited said: “Our first quarter earnings were strong despite weak global macroeconomic environment and challenging hydrocarbon market conditions. Our downstream businesses
delivered resilient performance in an environment of slower demand growth and incremental supplies.
The performance reflects the benefits of deep refining and petrochemicals integration, chain
economics and feedstock flexibility. The Company continues to make major strides in its retail and
digital services businesses led by focus on growth markets with offerings in the right product
segments and compelling value proposition. We are pleased with the robust growth both in revenues
and operating income for Reliance Retail. Our digital services business continues to transform the
mobility market in India while scaling newer milestones.”

 

 

 

 

 

 

Leave a Reply