Reliance Q2 profit rises 17% to Rs 9,516 crore, GRM at $9.50 per barrel

NEW DELHI: Oil-to-telecom giant Reliance Industries on Wednesd ay reported 17.35 per cent year-on-year (YoY) rise in net profit at Rs 9,516 crore, below a Rs 9,629 crore estimate analysts had projected in an ET Now poll.

This was the highest quarterly profit in RIL’s history. The Mukesh Ambani-owned firm had reported Rs 8,109 crore net for the year-ago quarter.

The company announced strategic partnerships with Hathway Cable and Den Networks. ET reported earlier this week that RIL was likely to own more than 25 per cent each in the two companies, giving it the ability to control developments and get a seat on the board.


Consolidated revenues rose 54.5 per cent YoY to Rs 1,56,291 crore in September quarter. The top line jumped due to higher price realisations of petrochemical and refinery products led by 44.5 per cent increase in Brent crude price. According to the company the Increased revenue also reflected in higher volumes with the commissioning and ramp-up of new petrochemical facilities.

Gross refining margin for the quarter came in at $9.50 per barrel against $12 per barrel in the same quarter last year. Analysts were largely expecting the company to report flat GRM on a sequential basis at $10.6-10.9 a barrel.

“Our company delivered robust operating and financial results for the quarter despite macro headwinds, with strong growth in earnings on a YoY basis. Our integrated refining and petrochemicals business generated strong cash flows in a period of heightened volatility in commodity and currency markets," said Mukesh Ambani, Chairman and Managing Director at Reliance Industries.

Brokerages were largely anticipating a strong 50 per cent growth in petchem and refining businesses, and an upbeat outlook for the digital business, given the likely gain in market share and increased focus on additional revenue streams through launch of fixed-line broadband services.

The company’s telecom unit, Reliance Jio reported a revenue of Rs 9,240 crore compared with Rs 8,109 crore in June quarter. Profit at Rs 681 crore in September quarter was up from Rs 612 crore in June quarter.

Ebitda for the telecom business rose to Rs 3,573 crore from Rs 3,147 crore sequentially. The ARPU came in at Rs 131.20 per subscriber per month.

As per ET NOW, RIL will make a primary investment of Rs 2,940 crore via preferential issue for 51 per cent stake in Hathway Cable.

In case of Den Networks, the company will make primary investment of Rs 2,045 crore through a preferential issue and secondary purchase of Rs 245 crore from existing promoters for a 66 per cent stake in the company.

RIL will make open offers in Den Network and Hathway Cable.

On Thursday, the stock closed 1.27 per cent lower at Rs 1,148. The stock would react to the second quarter earnings only on Friday, as the market will be shut on Thursday for Dussehra.