RIL Has The Numbers: Attains Highest Quarterly Profit By An Indian Private Firm
RIL Has The Numbers: Attains Highest Quarterly Profit By An Indian Private Firm
In good news for many investors, Mukesh Ambani-led Reliance Industries has posted a 13.7% jump in first quarterly profits to a total of $1 billion which is the highest quarterly profit ever attained by an Indian private firm. The jump comes from higher refining margins as well as heightened petrochemical earnings. The surge in the US gas shale business is also helping the company to reach new heights.
RIL's net profit in the month of April-June rose to 5957 crore rupees. This translates into Rs.20.3 per share which is up 13.7% up from 5237 crore rupees or Rs. 17.8 per share a year back. With this achievement, the company has become the first in the private sector in the country to post a net quarterly profit of $1 billion. The turnover has boosted by 7.2% to a total amount of Rs. 107,905 crore rupees.
Chairman and MD of RIL, Mukesh Ambani has been quoted as saying “RIL has achieved a record level of consolidated net profit this quarter. This was achieved despite weak regional refining margin and a planned turnaround in our refinery”.
Mumbai-based operator RIL has the world's biggest refinery complex and it earned $8.7 for turning every barrel of crude oil into fuel in the first quarter. This compared to $8.4 gross refining margin in the same time a year back.
Earnings from the petrochemical business soared by 9.3 percent.
The oil and gas business posted a 27.3% rise in revenue which is more than the doubled pre-tax segment profit. This was because the firms US shale gas business had an earning of Rs. 1617 crore compared to its domestic oil gas earnings of Rs. 1557 crore rupees.
Mukesh Ambani has also assured investors that RIL has “a great pipeline of new projects which will give Reliance an enduring competitive advantage”. RIL has also planned further expansion in its retail business while studying new markets and channels.
Analysts expected the company to earn a net profit of 56.14 billion rupees as per Thomson Reuters. CNBC-TV18 pegged the number at 5400 crore rupees. But RIL beat them all at 5957 crore rupees. Quarter-on-quarter net profit was up to 1.3% and revenues to 1.6%. Reliance Digital is now operating across 400 stores in the country.
The biggest excitement has been generated over the 4G services and broadband access. Reliance Jio Infocomm is also looking to provide end-to-end solutions across the entire value chain to focus on key areas of national interest. This includes education as well as healthcare, financial services, government-citizen interfaces and other important fields. The company will also built important infrastructure. It's recent acquisition of Network18 is one more step forward for the company.
