Reliance Industries (RIL) hits a fresh over nine-year high of Rs 1,578, up 3% on the National Stock Exchange (NSE), inches closer to its record high, after the company reported a better-than-expected 28% year on year (Y-o-Y) jump in its consolidated net profit at Rs 9,108 crore in June quarter (Q1FY18) on improved performance in the refining and petrochemicals business. The company had reported a net profit of Rs 7,113 crore in the same period a year ago. The stock is Rs 71 or 4.5% away from its all-time high of Rs 1,649 touched on January 15, 2008 during intra-day trade. On BSE,
The stock hit a lifetime high of Rs 1,626 on same day.“Our industry-leading portfolio of assets in the refining and petrochemicals business contributed to considerable improvement in our earnings for the quarter,” Mukesh Ambani, chairman and managing director, RIL, said in a press statement.RIL’s total income during quarter under review rose 26% to Rs 92,661 crore from Rs 71,451 crore the same period a year ago. The company’s gross refining margins (GRM) were $11.9 per barrel at a nine-year high. It reported GRM of $11.5 per barrel in the corresponding quarter a year ago.
“RIL reports better-than-expected operating profit in Q1FY2018 on account of higher-than-expected gross refining margin (GRM) and petrochemical EBIT (earnings before interest and tax) margin. RIL commissioned the last crystallisation train of the PX complex at Jamnagar, making RIL the second largest PX producer with 11% share in global PX production,” Sharekhan said in stock update.
The stock was trading 3% higher at Rs 1,577 on NSE, as compared to 0.42% rise in Nifty 50. A combined 5.08 million shares changed hands on the counter on NSE and BSE so far.
Mukesh Ambani-led Reliance IndustriesBSE 3.76 % (RIL) on Thursday reported better-than-expected earnings for June quarter, thanks to a rise in gross refining margin (GRM). However, net profit came in line with market expectations. Shares of the company closed 0.30 per cent down at Rs 1,528 on Thursday before the earnings numbers, whereas benchmark BSE Sensex settled 50.95 points, or 0.16 per cent, down at 31,904.
Here are the top takeaways from RIL’s first quarter earnings:
Net profit: The company reported 8.59 per cent year-on-year (YoY) rise in standalone net profit at Rs 8,196 crore for the quarter against Rs 7,548 crore reported for the corresponding quarter last year. Analysts in an ETNow poll had projected a bottom line figure of Rs 8,300 crore. Consolidated profit jumped 28.28 per cent YoY to Rs 9,079 crore thanks to a major boost from the retail segment. The number compared with Rs 7,077 crore consolidated profit posted for the year-ago quarter.
Revenues: The topline number jumped 18.39 per cent YoY to Rs 70,434 crore from Rs 59,493 crore in the same quarter a year ago. Consolidated revenue from operations increased 26.71 per cent YoY to Rs 90,537 crore. Robust growth in retail business, which posted a 73.6 per cent increase in revenue at Rs 11,571 crore, helped the consolidated figure. Brent crude oil price averaged $ 49.9 per barrel in Q1 of FY18 compared with $45.6 a barrel in the corresponding period of previous year.
GRM: Gross refining margin (GRM), the difference between crude oil price, a major raw material, and average selling price of refined products, came in at $11.9 a barrel for the quarter, compared with $10 a barrel that analysts had projected in the ETNow poll. RIL’s GRM outperformed Singapore complex margins by $5.5a barrel. Marginally weaker product cracks environment on QoQ basis was offset by yield shift and robust risk management. Further, favourable Brent-Dubai differential aided crude sourcing during the quarter. KG-D6 field produced 0.23 MMBBL of crude oil and 20.4 BCF of natural gas in Q1, a reduction of 20 per cent and 27 per cent respectively on a YoY basis. Condensate production in 1Q FY18 was at 0.03 MMBBL. Fall in oil and gas production was mainly on account of natural decline coupled with water and sand ingress resulting in shut in of wells. At present, 8 wells in D1D3 and 3 wells in MA is under production.
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