Oil-to-telecoms conglomerate Reliance Industries on Friday posted a 12.8 percent rise in its net profit on a year-on-year basis, at Rs 8,097 crore for the second quarter ended September 30, propelled with higher margins from its core refining and petrochemicals businesses. "I am delighted to share that this includes the financial performance of Reliance Jio which had a positive EBIT (earnings before interest and taxes) contribution in its first quarter of commercial operations", said Mukesh D. Ambani, Chairman and Managing Director, RIL.
The company had reported a net profit of Rs 7,209 crore in the same quarter last fiscal, RIL said in a regulatory filing.
Thakur said Jio sold 6 million bundled smartphones in the quarter and when asked where has the Rs 1,500 each collected from phone buyers as a refundable deposit, Srikant said this has been accounted as liabilities.
The retail business continued to do well with revenues rising almost 82 percent over the year earlier to Rs 14,646 crore and Ebit doubled to Rs 334 crore. Refining margin was at Dollars 11.9 a barrel in previous quarter and analysts' estimates were at USD 12.5 a barrel for Q2.
Gross refining margin for the quarter came in at United States dollars 12 per barrel, which was slightly below analysts' estimates but still at 9-year high.
The petrochemicals business put up a good performance during the quarter with revenues rising almost 25 per cent to Rs 27,999 crore following higher volumes in the polyester chain and firm prices. Jio said its users consumed over 1.78 billion hours of high-speed video per month during the quarter.
Jio's revenue for the quarter stood at Rs 6,147.06 crore and EBITDA stood at Rs 1,442 crore with margin at 23.45 percent.
With not much rise in the GRM, the refining and marketing segment revenue at Rs 69,766 crore grew four per cent sequentially (up 15.3 per cent year-on-year).
The latest entrant into the competitive telecom space said its average revenue per user or Arpu at Rs 156.4 is the highest in the industry, even though it's offering 84 days of discounted validity on an 28 days recharge.
"The strong financial results of Jio demonstrates the robust business model of Jio and the significant efficiencies that the Company has built through its investment in the latest 4G technology and right business strategy", he said. Net subscriber addition during the quarter were 15.3 million.
Its consolidated profit rose to Rs 8,109 crore (excluding exceptional items), compared to Rs 7,209 crore in the year-ago quarter. Margin expanded by 190 basis points sequentially and 247 bps year-on-year to 17.7 percent in quarter gone by.
It can be noted that many market watchers were expecting Jio to report around Rs 2,000 crore loss in Q2. The stand-alone earnings was below analyst estimates of Rs 8,805 crore, according to Reuters. RIL's GRM outperformed Singapore complex margins by $3.7 per barrel.