Third Quarter Standalone Net Profit of RIL Increases by 10%

The standalone net profit for Reliance Industries Limited (RIL) for the quarter that ended in December 2016 has seen an increase by 10%. This has been attributed to the company’s impressive performance in the refinery sector. Owing to this RIL’s standalone net profit for the third quarter went up to Rs. 8,022 crores.

RIL’s gross refining margin

The company recorded an impressive performance mainly because of its gross refining margin, which is what remains after deducting the value of petroleum products and crude oil price from a refinery. Reliance Industries Limited surpassed market expectations by recording a gross refining margin of $10.8 per barrel.

After the net profit was announced, Managing Director and Chairman of Reliance Industries Limited, Mukesh Ambani stated that a lot of credit goes to the well-planned strategies of the company. According to him, the company lays special emphasis on the operations and holds a strong portfolio, which enables it to work towards the best interests of the country. Mukesh Ambani believes that although the market is competitive, these factors have helped the company stand apart from competitors.

RIL’s growth

Mukesh Ambani also stated that the demand for transportation fuels across the globe has led to the refining sector making considerable progress with regard to the gross refining margin in eight consecutive quarters. In the same statement, he spoke about the company’s commissioning of the Paraxylene plant’s first phase.  According to him, the Paraxylene project has helped the company strengthen the operations of its refining and petrochemicals business. He added that Reliance Industries Limited’s strategy for development is based on providing sustainable returns to the company’s shareholders through high-return projects, which are capable of facilitating growth.

Net profit and revenue garnered

Reliance Industries Limited’s standalone revenue for the third quarter increased to Rs. 66,606 crore, which is a rise by 9%. The company also achieved a better turnover than the previous year by garnering Rs. 84,189 crore. This is seen as a rise by 16.1% compared to last year. Additionally, RIL’s cumulative net profit also went up by 3.6% than the previous year for the quarter which ended in December 2016.

The results regarding the net profit were revealed after the Indian equity markets closed. RIL’s telecom arm, Jio has also emerged as a leading operator in the market with its 4G services. To support the growing subscriber base, Jio will be investing an additional Rs. 30,000 crore to improve the network’s coverage and reach across the country. The finance for the same will be provided mainly through an equity funding by a rights issue.

Summary

The standalone net profit of Reliance Industries Limited increased by 10% in the third quarter. The company also announced that Jio is among the operators having the widest 4G network in the country.

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