NEW DELHI: Reliance Industries Ltd (RIL) on Friday reported a eight-year high quarterly net profit growth of 15.94% for the quarter ended March 31, 2016, riding high on strong petrochemical margins, to offset the weak showing in the refining segment. RIL operates one of the world’s largest oil-refinery complex, at Jamnagar in Gujarat, with a refining capacity of 1.24 million barrels of oil per day.
The country’s largest corporate in terms of revenue, led by Mukesh Ambani, reported a consolidated net profit of Rs 7,398 crore for the quarter under review as against Rs 6,381 crore in the same period a year ago. The company’s consolidated revenue stood at Rs 60,252 crore against Rs 67,470 crore a year ago.
RIL’s stand-alone profit was Rs 7,320 crore during the quarter as against Rs 6,243 it reported last year. The company announced a dividend of Rs 10.5 per share.
The company in a statement said, refining and marketing account for 78% of RIL’s overall revenue and 61% of profit. Its gross refining margin (GRM) for the quarter was at $10.8 a barrel compared with $10.1 a year ago. GRM value is calculated derived from the cost of converting every barrel of crude oil into a finished product(s).
RIL shares closed at Rs 1,038.75, down 0.21% on BSE on Friday.
“FY 2015-16 has been a year of outstanding achievement for our downstream hydrocarbon businesses, notwithstanding persisting global economic uncertainty. Refining and petrochemicals delivered record operating and financial performances. Our refineries sustained double-digit GRMs and record levels of utilization through the year,” Mukesh D Ambani, CMD, RILsaid in a statement.
Reliance Retail revenue grew by 21% y-o-y to Rs 5,781 crore as against Rs 4,788 crore same period last year.
Meanwhile, RIL said it will increase the capex by Rs 30,000 crore this fiscal to complete ongoing refining and petrochem projects as well as for the telecom business. RIL Group Deputy CFO V Srikanth said, Rs 50,000-60,000 crore will be needed to complete the ongoing multi-billion dollar expansion at the Jamnagar refinery complex and over Rs 60,000 crore in Reliance Jio.
R-Jio commercial operations soon
Reliance Jio Infocomm will launch commercial operations in coming months, RIL said. Reliance Jio, the telecom arm of Reliance Industries, launched full scale service offerings for group employees, partners, vendors and associates on a trial basis on December 28, 2015.
The commercial roll-out of Jio services this year will digitally enable a billion Indians and propel growth for India and Reliance — Mukesh Ambani, Reliance Industries Chairman and managing Director