Reliance Q3 net up 10% to record Rs 7218 cr; GRM at 7-year high

Reliance Industries' (RIL) Q3 standalone revenue hit analysts' prospects on Tuesday, increasing 10% q-o-q to Rs 7,218 crore on healthy performance of refining business and upper other income. It was anticipated at 6,950 crore for the quarter, according to analysts polled by CNBC-TV18.

"Advantages of low crude oil and energy rates for downstream businesses clearly outweigh the crash of these things on upstream division, reflecting in the record earnings for the quarter," said Mukesh Dhirubhai Ambani, Chairman and Managing Director.

The petrochemical major has reported profits of Rs 56,567 crore for the quarter against Rs 60,817 crore in preceding quarter. Gross refining margin hopped to seven-year high at USD 11.50 a barrel in quarter closed Dec. 2015, viewing an boost of 8.5% compared to USD 10.6 a barrel in Sept. quarter. In same time, benchmark Singapore complex margin averaged at USD 8 a barrel against USD 6.30 a barrel.

Refining business delivered so far another record performance on the back of seven-year high refining margins and maximum ever crude throughput. In the nine-month time, refining business EBIT (Rs 16,888 crore against Rs 10,760 crore Y-o-Y) has surpassed the record earnings it reached in FY15," said Ambani, adding petrochemical business also delivered amongst its top quarterly performance driven by healthy polymer margins.

Standalone operating revenue improved 4.5% successively to Rs 10,272 crore and margin expanded by 200 basis points to 18.2% during Oct-Dec quarter. Margin was sustained by both refining as well as petchem businesses. Refining earnings before interest & tax (EBIT) rise by 17% q-o-q to Rs 6,333 crore with margin growing 220 basis points to 12.8%. EBIT was increased by all-time high crude throughput of 18 MMT (utilisation rate of 116%), Reliance said.

Petchem EBIT improved 2.9% to Rs 2,592 crore with margin growing 170 basis points to 14.4% in quarter gone by. During the quarter, other income leaped 41.5% consecutively to Rs 2,289 crore. Finance cost dropped 12.2% to Rs 609 crore while tax expenses rushed 27.8% to Rs 2,329 crore in same time.

Reliance said merged revenue during the quarter raise by 8.5% to Rs 7,290 crore, adding profits fallen 3.7% to Rs 68,261 crore compared to preceding quarter on drop in benchmark (Brent) oil rate. Brent oil price averaged at USD 43.7 a barrel in Q3FY16 compared to USD 50.3/barrel in Q2. Combined outstanding debt was Rs 178,077 crore at the end of December quarter compared to Rs 160,860 crore as on March 2015. Cash and cash equivalents as on Dec. 31, 2015 were at Rs 91,736 crore, it said.

Reliance Retail sustained its development momentum, posting maximum ever quarterly turnover of Rs 6,042 crore during the Q3 against Rs 5,091 crore in preceding quarter, registering a development of 18.7%. Retail EBIT improved 25.6% consecutively to Rs 147 crore in quarter gone by. Reliance said accelerated store opening sustained during current time with Reliance Retail now operating over 3,000 stores. As on Dec. 31, 2015, it operated 3,043 stores across 371 cities in India. The scrip of Reliance Industries, which declared earnings after market hours, ended at Rs 1,043.60, up 2.51% on the BSE. (Source: Money control)