This story is from October 19, 2019

RIL Q2 profit rises 18% to Rs 11,262 crore

RIL Q2 profit rises 18% to Rs 11,262 crore
Mumbai: Strong growth in consumer-facing businesses boosted Reliance Industries’ second quarterly profit of fiscal 2020 by 18% to Rs 11,262 crore. This is the highest quarterly profit earned by any private company in corporate India.
Revenue in the September quarter increased 5% to Rs 1.63 lakh crore compared to Rs 1.56 lakh crore a year ago. The retail and digital service businesses grew 27% and 43%, partially offsetting the decrease in refining and petrochemicals segments.
Operating profit of RIL’s traditional petrochemicals business, the biggest contributor to earnings, declined 6% to Rs 7,602 crore.

Operating profit of the refining unit, the second major contributor to earnings also declined 7% to Rs 4,957 crore due to lower refining margins. The company’s Jamnagar refinery, the world’s largest, earned $9.4 from every barrel of crude it processed, lower than what it earned in the second quarter of fiscal 2019.
The retail division’s operating profit rose 64% to Rs 2,035 crore, while the digital services business’s operating profit zoomed 63% to Rs 3,322 crore.
RIL chairman Mukesh Ambani said the numbers reflect the rapid scale-up of the consumer businesses. “The continuing growth trends in our retail business is heartening.”
The retail and digital services (Jio) units accounted for 33% of RIL’s operating profit in the September quarter of fiscal 2020. Ambani had said earlier that he would want the retail and digital services businesses to contribute as much to RIL’s earnings as that of its traditional units like petrochemicals and refining in the future.

“We are now executing yet another game changing initiative with the largest ever roll out of broadband services to home and enterprises through JioFiber,” Ambani said. Ahead of the earnings announcement, RIL hit a market cap of Rs 9 lakh crore on the BSE on Friday, becoming the first Indian company to reach this milestone.
Its media business reported an operating profit of Rs 47 crore due to robust growth in subscription income after the implementation of new tariff order. While oil & gas businesses reported an operating loss of Rs 306 crore due to declining volume.
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