New Delhi: Oil-to-telecom conglomerate Reliance Industries on Friday reported a 12.5 per cent jump in its September quarter net profit after refining margin soared to nine year high and mobile telephony venture earned operational profit.
Net profit in July-September at Rs 8,109 crore, or Rs 13.7 per share, was higher than Rs 7,209 crore, or Rs 12.2 a share, in the same period of last fiscal, the company said in a statement.
The company earned $12 on turning every barrel of crude oil into fuel in Q2, up from $10.1 a barrel gross refining margin in same quarter of previous year and $11.9 a barrel in first quarter of the current fiscal.
A year after re-entry into telecom business, Reliance said it earned operating profit of Rs 260 crore with 1.53 crore subscribers being added in Q2 to take the total to 13.86 crore.
Total revenue was up 23.9 per cent to Rs 1,01,169 crore.
Commenting on the results, RIL Chairman and Managing Director Mukesh Ambani said robust performance in the quarter is helped by "the financial performance of Reliance Jio which had a positive EBIT (earnings before interest and taxes) contribution in its first quarter of commercial operations". Also, refining and petrochemicals businesses did well.
"Sustained demand growth coupled with supply disruptions further tightened demand-supply balances globally during the quarter. The benefits of optimising our business through new projects are beginning to emerge. The structural strength in energy and materials business environment augurs well for our new capacities which are coming on-line this year," he said.
Ambani, who created a flutter in the telecom sector with his free voice and dirt cheap data offering together with almost-free handset, said strong financial results of Jio demonstrate the robust business model and the significant efficiencies that the Company has built through its investment in the latest 4G technology and right business strategy.
Pre-tax profit from the mainstay refining sector was up 10.8 per cent at Rs 6,621 crore year-on-year but it fell 11.4 per cent when compared to Q1 earnings.
Jio notches 138.6 mn subscribers... but loses ₹270 cr
New Delhi: Reliance Jio, India's newest telecom operator known for its disruptive tariffs, on Friday posted a loss of Rs 270.5 crore for the three months to September as against Rs 21.3 crore loss in the preceding June quarter. Standalone revenue from operations stood at about Rs 6,147 crore for the September quarter, said Reliance Jio whose subscriber base has swelled to over 138 million now. In a statement, Reliance Jio – which competes with the likes of Bharti Airtel, Vodafone and Idea Cellular -- said that the consolidated value of services stood at Rs 7,213 crore with consolidated EBIT or earnings before interest and tax of Rs 261 crore.