RIL 1st private firm to post Rs 10,000 cr quarterly profit
New Delhi: Reliance Industries Ltd Thursday became the first Indian private sector company to report a quarterly profit of more than Rs 10,000 crore after record earnings from petrochemical, retail and telecom business offset a dip in refinery margins.
The oil-to-telecom conglomerate reported an 8.8 per cent rise in its consolidated net profit to Rs 10,251 crore, or Rs 17.3 per share, in the third quarter ended December 31, 2018, as compared to Rs 9,420 crore, or Rs 16 a share, in the same period of the previous financial year, the company said in a statement.
This is the highest quarterly profit by any private company. State-owned Indian Oil Corp (IOC) holds the distinction of posting highest ever quarterly profit by any Indian firm when it had reported a net profit of Rs 14,512.81 crore in January-March 2013.
IOC net profit in the fourth quarter of 2012-13 fiscal was abnormally high because of receipt of fuel subsidy for the full year in one quarter. Its annual profit that fiscal was Rs 5,005.17 crore as it had posted losses in the previous quarter on failing to get fuel subsidy support.
Reliance Industries saw its revenue jump by 56 per cent to Rs 171,336 crore in October-December 2018.
The company opened more retail stores and added almost 28 million new subscribers to its Jio mobile phone service that helped increase the profitability of the venture as its traditional oil refining business witnessed margin pressures on falling international oil prices.
"In our endeavour to consistently create more value for our country and stakeholders, our company has become the first Indian private sector corporate to cross Rs 10,000 crore quarterly profits milestone," RIL Chairman and Managing Director Mukesh Ambani said.
In an oil price environment that witnessed heightened volatility throughout the quarter, the company delivered strong quarterly results on a consolidated basis.
"Competitive cost positions and integration benefits are core to our oil to chemicals (refining and petrochemicals) business, driving sustained performance even in challenging global business environment," he said.
The company, he said, maintained robust growth momentum across retail and Jio platforms and "the share of consumer businesses is steadily increasing its contribution to the overall profitability of the company".
Its retail business, which comprises of 9,907 stores across 6,400-plus towns and cities, saw pre-tax business profit jump 210 per cent to Rs 1,512 crore on the back of healthy festive season sales and new store openings.
Reliance Jio, the group's telecom arm, posted a standalone net profit of Rs 831 crore, which was 65 per cent more than the previous year, as subscriber base swelled to 280.1 million from 252.3 million at the end of September quarter.