Mukesh Ambani-led Reliance Industries on Friday reported 18.3 per cent year-on-year (YoY) growth in consolidated net profit at Rs 11,262 crore for the second quarter ended September 30, 2019, helped by strong performance across all business segments.
"The Mumbai-headquartered company had posted consolidated net profit of Rs 9,516 crore in the same quarter last year," RIL said in a filing to the Bombay Stock Exchange.
RIL's consolidated net revenue grew by 4.8 per cent to Rs 163,854 crore in July-September quarter of FY20, compared to Rs 1,56,291 crore in the corresponding quarter, driven by robust growth in retail and digital services businesses.
During the quarter under review, RIL's profit before tax (PBT) increased by 15.5 per cent to Rs 15,055 crore as against Rs 13,198 crore in quarter ended September 2018.
The company's operating profit (EBITDA) rose by 7.1 per cent YoY to Rs 23,169 crore from Rs 21,641 crore in the corresponding period of the previous year, helped by strong operating performance in retail and digital services business.
The other income jumped nearly 3-fold to Rs 3,614 crore in Q2FY20 against Rs 1,250 crore in Q2FY19.
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On the standalone basis, the net profit rose by 9.5 per cent YoY to Rs 9,702 crore, while revenue dipped 8.4 per cent to Rs 94,446 crore.
Commenting on the results, Mukesh Ambani, Chairman and Managing Director, Reliance Industries said: "The Company has reported record net profit for the quarter. These excellent results reflect benefits of our integrated Oil to Chemicals (O2C) value chain and the rapid scale-up of our Consumer businesses. During this quarter, our O2C businesses gained from favourable fuel margins environment, feedstock sourcing flexibility and higher petrochemicals volumes. Our O2C business, with new partnerships, is best placed to pursue growth and substantial value creation."
In Q2FY20, revenue for the oil and gas segment slipped by 40.2 per cent YoY to Rs 790 crore, impacted by declining volume.
The revenue of petrochemical business decreased by 11.9 per cent YoY to Rs 38,538 crore from Rs 43,745 crore in the year-ago period, reflecting fall in prices of petrochemical products.
Exports (including deemed exports) from RIL's India operations dipped by 12.1 per cent YoY to Rs 53,161 crore, due to lower price realisation across petrochemicals and emphasis in domestic placement.
Gross refining margins (GRMs) declined for the ninth consecutive quarter to $9.4 per barrel as against $9.5 per barrel in the same quarter last year. In the June quarter, it stood at USD 8.1 per barrel.
As of September 30, 2019, RIL had an outstanding debt of Rs 291,982 crore compared to Rs 287,505 crore as on March 31, 2019. Cash, cash equivalents and marketable securities stood at Rs 134,746 crore, while the capital expenditure for the quarter was Rs 19,095 crore.
Ahead of Q2 results, shares of Reliance Industries closed 1.37 per cent higher at Rs 1,415.30 apiece on the Bombay Stock Exchange.
Edited by Chitranjan Kumar