RIL Q1 standalone net profit up 9% at Rs 8,196 crore


Oil-to-telecom conglomerate Reliance Industries Ltd (RIL) led by India’s richest man Mukesh Ambani on Thursday posted a 9 per cent year-on-year jump in its standalone net profit for the April-June period ( first quarter or Q1) at Rs 8,196 crore, on the back of higher margins from its core petrochemicals business.

During the reporting quarter, RIL had a one time gain of Rs 1,087 crore.

Analysts on average expected the RIL to post a standalone profit of Rs 7,993 crore, according to Thomson Reuters data. The standalone numbers account for the company’s refining, petrochemicals and oil and gas exploration businesses.

On a consolidated basis, RIL posted an over 28 per cent year-on-year jump in its net profit for the April-June period ( first quarter or Q1) at Rs 9,108 crore.

Gross refining margin (GRM) on each barrel of crude processed — a key profitability gauge — was $11.9 in the June quarter, compared with $11.5 a year earlier. GRM is what a refining company earns by converting a barrel of crude oil into refined products.

Analysts had expected a decline in GRM for the quarter, on the the back of a sharp decline in crude/product prices. During the reporting quarter, crude oil prices fell to an average of $50.8 per barrel from $54.6 in the previous (March) quarter.
Reliance Industries will hold its 40th annual general meeting (AGM) on Friday. Analysts will be closely tracking tomorrow’s event for new announcements at its annual general meeting tomorrow.

RIL shares have outperformed the broader markets this year, rising 42 per cent compared to a 21 per cent gain in Nifty. Reliance Industries also surpassed TCS (Tata Consultancy Services) as India’s most valuable company in terms of market capitalisation.


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