wnol.info February 21 2018

India's Reliance sees profits jump 28 percent

February 21 2018, 05:40 | Alexander Lowe

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Mukesh Ambani's Reliance Industries Ltd (RIL) on Thursday said its board has approved to pick around 25 per cent stake in Balaji Telefilms by acquiring 2.52 crore shares for around Rs 413 crore.

Reliance Industries' gross refining margin (GRM), the money made from turning one barrel of crude oil into fuel, came in at $11.9 compared to $11.5 in the corresponding quarter of past year.

According to the insurer, its combined ratio for the period under stood at 104 per cent down from 114 per cent during the corresponding period of the previous year.

Exports (including deemed exports) from India operations were higher by 11.5% at Rs 371.11 billion (USD 5.7 billion) as against Rs 332.82 billion in the corresponding period of the previous year. Retail business also witnessed accelerated growth momentum with YoY revenue growth of 74%.

Petrochemical EBIT increased 17.1 percent to Rs 4,031 crore QoQ, with margin expansion of 280 basis points at all-time high of 15.8 percent.

Consolidated net profit for the three months through June rose to 91.08 billion rupees ($1.4 billion), up from 71.13 billion rupees a year earlier, said the Mumbai-based firm which is owned by India's richest man Mukesh Ambani.

1Q FY18 revenues for the Oil & Gas segment decreased by 1.2 percent on a Y-o-Y basis to Rs 1,324 crore primarily due to lower volumes in United States shale and domestic operations.

RIL, which operates the world's largest refining and petrochemicals complex at Jamnagar (Gujarat), will report its earnings on Thursday. Refining business contributed ₹66,945 crore of revenue while petrochemicals accounted for ₹25,461 crore. "This digital services business has been built to address the entire value chain across the digital services domain with smart applications to make life simple, attractive and secure". "Over the past 3-4 years, we made significant investments in new plants, thus creating organic growth platforms for our energy and materials businesses", Ambani said.

Segment EBIT (including exceptional item of Rs 1,087 crore) increased by 13.4% (YoY) to a record level of Rs 7,476 crore, against Rs 6,593 crore in Q1FY17.

Outstanding debt as on June 30 was 2.01 trillion rupees compared to 1.97 trillion rupees as on March 31, Reliance Industries said.

Reliance Retail, the retail arm of Reliance Industries, has reported 65.8 per cent rise in pre-tax profit at Rs 398 crore for the first quarter ended on June 2017.

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