Home > Companies > Company Results > RIL Q1 revenues rise 21% to 1.61 trillion on boost from Jio, retail

RIL Q1 revenues rise 21% to 1.61 trillion on boost from Jio, retail

  • Reliance Retail revenue rises 48% while Jio posted 46% increase in net profit
  • Gross refining margins stood at $8.1 per barrel as against $10.5 per barrel in the same quarter last year; RIL's net profit rises nearly 7%

Mumbai: Oil-to-telecom behemoth Reliance Industries Ltd (RIL) reported a consolidated net profit of 10,104 crore for the period ended 30 June, 2019 a rise of 6.82% from 9,459 for the same quarter last year. The consolidated revenue from operations grew 21.25% to 1.61 trillion during the quarter as against 1.33 trillion for the same period a year ago.

According to a Bloomberg survey of 11 brokers, RIL’s consolidated net sales are expected to come in at RS 1.45 trillion. Net profit was estimated at 9,706.20 crore by 13 brokers.

RIL's telecom business Jio reported a profit of 891 crore. Analysts had expected it to report around 7% quarter-on-quarter revenue growth with a marginal dip in average revenue per user (ARPU) by 1-2% to 125.

RIL's retail arm reported a rise of 48% in revenue at 38,186 crore for the quarter ended 30 June, 2019 as against 25,890 crore for the same quarter last year.

RIL's gross refining margin or GRM came in at $8.1 per barrel. It was expected to report its eighth consecutive quarterly decline in GRM, which is what a refiner makes from turning every barrel of crude to fuel. Analysts expected RIL’s GRM to come in at $8-$8.5 per barrel this quarter.

Brent crude oil prices fell 8.2% year-on-year to average $68.5 per barrel in the June quarter. Singapore GRM declined 43% year-on-year to $3.5 per barrel. Though GRM has recovered of late, the gasoline crack spread remains at lower levels. A slowdown in the demand environment along with new capacities set to come on schedule would put further pressure on GRMs.

Revenue from the petrochemicals segment stood at 37,611 crore for the June quarter, a dip of 6.64% when compared to 40287 crore posted in the same quarter last year. Analysts had estimated that performance in petrochemicals may not impress as chemical margins have been on a downtrend, especially in June, due to a possible slowdown in demand.

The RIL stock closed at 1,249 per share down 1.01% on Friday, while the benchmark index, Sensex lost 1.44% to close at 38,337.01 points.

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