Ranging From Oil-to-telecom Reliance Industries posted the highest quarterly profit on Friday at Rs 11,262 for the quarter ended September 2019, beating Rs 11,000 crore estimates by analysts.
The company’s consolidated bottom line grew 18.30 percent YoY on top-line growth of 4.80 percent YoY. The consumer sector was one-third of the total Ebitda in Q2 of the company.
Major takeaways from the posting are-
Jio comes up with some good numbers
- The telecom arm of RIL, Reliance Jio, reached for the first time Rs 5,000 crore quarterly EBITDA mark. The estimate jumped to Rs 5,166 crore by 10.20 billion from YoY. The vertical net profit advanced 11.10% YoY to Rs 990 crore. The EBITDA margin improved to 41.80% by 315 basis points. However, average revenue per user (Arpu) dropped from Rs 122 to Rs 120, marking a 7th consecutive quarter drop. The charges for JIO’s Inter User Connect (IUC) were in Q2FY20 at Rs 652 crore. “Tariff hikes are not being looked at by the client,” RIL said.
Retail setting new highs
- Revenue from the retail segment of RIL for the first time exceeded the Rs 40,000 crore mark. In Q2FY20, the figure jumped 27 percent from Rs 32,436 crore in Q2FY19 to Rs 41,202 crore. In the last 14 years, Reliance Retail revenue grew7-fold and Ebitda 10-fold. The EBIT margin rose from 3.80% year-on-year to 4.90%. “Reliance Retail has emerged as the world’s fastest-growing retailer to cross the annual revenue mark of $20 billion,” RIL said. All core baskets for retail consumption have risen in high double-digits, RIL said. Jio emerged as a pioneer in terms of both subscribers and revenue by the end of the quarter.
Revenue of Petrochemical drops but the output increases
- During the quarter under review, revenue from petrochemical operations slipped 11.90 percent from YoY to Rs 38,538 crore along with a 6.40 percent fall in EBIT. However, margins rose from 18.60 percent in Q2FY19 to 19.70 percent. Compared to 8.7 MMT and 9.4 MMT posted for Q1FY20 and Q2FY19, the company reported its highest output of petrochemicals at 9.9 million tonnes (MMT) for the period. The company has benefited from the world of favorable fuel margins.
“Segment EBIT decreased by 6.4 percent YoY to Rs 7,602 crore, mainly due to weaker petrochemical product margins, which was offset by record petrochemical production and cost optimization through light-feed cracking,” RIL said. All gasified units safely commissioned and stabilized while R-cluster development work is on track, the company said.
Refining and Marketing Drop revenue
- R&M segment revenue declined 1.60% in Q2FY20 to Rs 97,229 crore. The gross refining margin fell from $9.50 per barrel of YoY to $9.40. The figure stood at $8.1 a barrel ended on June 2019 in the previous quarter. Due to lower GRM and small light-heavy crude differentials, the segment’s EBIT dropped by 6.90% to Rs 4,957 crore.
- Oil & Gas- This segment’s topline did not contribute much to the top line of RIL. Segment revenue fell to Rs 790 crore by 40.20 percent from YoY. In Q2FY20, the EBIT margin rose to -38.70% from -36.30% in Q2FY19. “Declining volume continued to affect the quality of the segment,” RIL said.
- Digital Services- Digital services revenue soared 42.70% to Rs 15,619 crore. In Q2FY20, the segment’s EBIT jumped 62.70% to Rs 3,322 crore.
Recently, Reliance Industries Ltd (RIL) became the first Indian firm to cross over 9 trillion market cap after its shares in Friday’s trading session increased by nearly 2 percent to reach 1.423. These numbers show quite a rollercoaster ride of RIL and it’s an ever-growing business.