Reliance Industries Profit: Mukesh Ambani-led Reliance Industries Ltd’s net profits rose by 6.80 percent to Rs 10,104 crore in the first quarter of the current financial year. In the total business of the company, the share of consumer business such as telecommunication service and retail business has increased.
The reduction in the company’s traditional petrochemical and refining business is now being completed by increasing business of companies that are directly engaged in consumer business like telecom and Reliance Retail. The share of these two businesses has reached one-third in the profits of the company’s tax priorities.
In a statement, the company said that it had a net profit of Rs 9,459 crore in the corresponding quarter of last financial year (April to June 2018). In the last quarter of the last financial year (January to March 2019), the company’s net profit was Rs 10,362 crore, which is the highest profit of any quarter in its quarter.
The company said that its unified revenue increased to record Rs 1,72,956 crore during this period. According to the company, its share of tax profits from its consumer business has increased from 25 percent to 32 percent. The previous earnings of ‘Reliance Retail’ crossed the Rs 2,000 crore tax, while the revenue of Reliance Jio was 45.60 percent. Increased to 891 million rupees.
The company said that during the quarter, it opened a new retail store and added 2.46 million new customers with Jio. In the June quarter, the average revenue per person per month is Rs. 122 per month. It was Rs. 126.20 in the March quarter.
Reliance Industries said that the retail unit is growing faster than any other party. This unit now has more than 230 million square feet of retailing in more than 6,700 cities. During the reported quarter, the number of registered subscribers crossed 10 million. During the quarter, 15 million subscribers reached its stores.
The company said that the pre-tax profits of petrochemical business fell by 4.40 percent to Rs 7,508 crore. The pre-tax earnings of oil refining business also declined by 15.2 percent to Rs 4,508 crore. The gross refining margin of the company stood at 8.1 dollars per barrel in April-June, 2019, much lower than last year’s 10.5 dollars per barrel.
Speaking about the result, Chairman and Managing Director of the company, Mukesh Ambani said, “Despite the difficult global macroeconomic environment and the challenging conditions of the hydrocarbon market, our performance has been strong in the first trimester. Our petroleum business has performed brilliantly despite sluggish demand and more supplies. ”
The company says that it has mainly completed the investment cycle and its total outstanding debt increased from Rs 287,505 crore in March 2019 to Rs 288,243 crore on June 30, 2017. The cash available to the company fell from Rs 1,33,027 crore to Rs 1,31,710 crore during this period.
Reliance also announced to sell its tower business. He said that Brookfield will invest Rs 25,215 crore in his tower business. “Reliance Industries’s full subsidiary Reliance Industrial Investment and Holdings has tied up with BIF-IV Jarvis India, affiliated to Brookfield Asset Management Company,” the company said in a notification given to the stock exchanges. Under the agreement Brookfield (with co-investors) will invest Rs 25,215 crore in the units to be issued by the Tower Infrastructure Trust. Brookfield’s investment is dependent on government and regulatory approvals.
Reliance Industrial Investment & Holdings is the sponsor of this trust. He has Reliance Jio Infratel Private Limited (RJIPL) has 51 percent share capital. Recently, Reliance property has been transferred to Tower Property in RJIPL. According to the information, the amount received from Brookfield’s investment will be used in the payment of the existing financial liabilities of the IPL and 49% equity shares of the remaining RJIPL will be done in acquiring equity, which is currently owned by Reliance Industries.