Reliance Industries Q4FY18 PAT increases by 17.5 per cent

Reliance Industries reported results for the quarter ended March 31, 2018 on Friday.

The company’s consolidated revenue for the quarter came in at Rs. 1,20,143 crore, registering 29.3 per cent yoy increase. This was led by volume increase with start-up of petrochemicals projects and oil price-related increase in realizations for refining and petrochemical products. The increase in consolidated revenues reflect robust growth of 134 per cent in Retail business and continuing growth momentum in wireless subscriber additions for Digital Services business.

GRM for the year was at a 9-year high of US$11.6/bbl as against US$11.0/bbl in the previous year. Company’s GRM outperformed Singapore complex margins by US$4.4/bbl.

EBITDA for the quarter rose by 51 per cent yoy to Rs. 18,469 crore with a corresponding margin expansion of 220 bps. EBITDA margin for the quarter stood at 15.4 per cent. This strong operating performance was driven by growth in Petrochemicals, Retail and Digital Services businesses. This was partially offset by reduced contribution from refining due to lower crude throughput, and lower volumes in upstream oil & gas.

The PAT for the quarter came in at Rs. 9,459 crore, yoy increase of 17.5 per cent.

Reliance Jio’s standalone revenue came in at Rs. 7,128 crore, a growth of 3.6 per cent on qoq basis. Further, its net profit stood at Rs. 510 crore. It continued its strong subscriber growth trend with net addition during the quarter of 26.5 million as against 21.5 million in the previous quarter. Total subscriber base as on March 31, 2018 was Rs. 186.6 million. ARPU during Q4FY18 came at Rs. 137.1 per month.

Exports from India were higher by 32.5 per cent at Rs. 51,295 crore as against Rs. 38,718 crore in the corresponding period of the previous year due to higher volumes and product prices in refining and petrochemical business.

During Q4FY18, company announced strategic transaction with Saavn to form India’s largest platform for music, media and artists through its digital music service, JioMusic. The combined entity is valued at over US$1 billion, with JioMusic’s implied valuation at US$670 million.

Under its Retail business, company has further strengthened its presence through its partnerships by acquiring 46.6 per cent stake in Genesis Luxury Fashion Pvt Ltd.

Looking at the full year numbers, we see that revenue jumped by 24 per cent to reach Rs. 4,08,265 crore while EBITDA rose by 39 per cent to Rs. 64,176 crore. Company reported net profit of Rs. 36,080 crore, up 21 per cent yoy.

The board of directors have recommended a dividend of Rs. 6 per equity share for the face value of Rs. 10 each.