RIL Q1 FY17 net up 18.1% at Rs 7,113 crore

Reliance Industries has reported an 18.1 per cent growth in its Q1 FY17 consolidated net profit at Rs 7,113 crore. PBDIT increased by 16.7 per cent to Rs 13,589 crore. EBIT margin at 10.7 per cent, was up by 241bps.

Cash profit increased by 13.3 per cent to Rs 10,113 crore.

Mukesh D Ambani, Chairman and Managing Director, Reliance Industries, commented, “At Reliance, we continued to harness the power of our integrated energy and materials business portfolio. We maintained our earnings growth trajectory during this quarter, as the world grappled with new dimensions of economic uncertainty.” Speaking about Reliance Jio, he said, “We have built an entire ecosystem that will allow Indians to live the digital life to the fullest. This transformational ecosystem consists of broadband connectivity, devices and powerful applications and services which will be available to every consumer in India.”

The capital expenditure for the quarter ended 30th June 2016 was Rs 26,690 crore, including exchange rate difference capitalization. Capital expenditure was principally on account of ongoing expansions projects in the petrochemicals and refining business at Jamnagar, Dahej, Hazira, US Shale gas projects and Digital services business.

Oil and Gas ( Exploration and Production) Business

1Q FY17 revenues for the Oil & Gas segment decreased by 34.8% Y-o-Y to ` 1,340 crore. The decline in revenue was led by lower upstream production in domestic blocks coupled with sharply lower oil and gas prices in both the domestic and US shale segments. The unfavorable upstream price environment impacted segment EBIT which was at ` (-) 312 crore, as against ` 199 crore in the corresponding period of the previous year.

Organised Retail

Revenues for 1Q FY17 grew by 45.8% Y-o-Y to ₹ 6,666 crore from ₹ 4,572 crore. The increase in turnover was led by growth in Digital, Fashion & lifestyle and petroleum products. The business delivered strong PBDIT of ₹ 240 crore in 1Q FY17 as against ₹ 198 crore in the corresponding period of the previous year. During the quarter, Reliance Retail added 138 stores across various store concepts, strengthened its distribution network for consumer electronics and enhanced omni commerce channel offerings by launching www.footprint360.com. As on 30th June 2016, Reliance Retail operated 3,383 stores across 679 cities with an area of over 13 million square feet. Reliance Retail operates 361 fuel retailing outlets through its subsidiary Reliance Petro Marketing Limited.

DIGITAL SERVICES

Reliance Jio Infocomm Limited (“RJIL”), a subsidiary of RIL, is rolling out a state-of-the-art pan India digital services business. In addition to fixed and wireless broadband connectivity offering superior voice and data services on an all-IP network, RJIL will also offer end-to-end solutions that address the entire value chain across various digital services in key domains such as education, healthcare, security, communication, financial services, government-citizen interfaces and entertainment. RJIL aims to provide anytime, anywhere access to innovative and empowering digital content, applications and services, thereby propelling India into global leadership in digital economy. RJIL envisages to usher in the era of “visuality”, where video will replace voice as the new communication medium. RJIL will have one of the most comprehensive and powerful Video networks in the world.

This global initiative will provide a common universal profile which will enable these mobile operators to deploy an interoperable RCS implementation with a core feature set and configuration.

MEDIA BUSINESS

 Network18 Media & Investments Limited reported consolidated segment revenue of ` 820 crores and Segment EBIT at ` (-) 77 crores. During the quarter Network18 has invested aggressively in new channel launches and in upgrading existing properties, talent and digital businesses. Three new regional news channels were launched in Kerala, Tamil Nadu and Assam/N.E. CNN-IBN was re-branded and re-launched as CNN-News18. With the re-launch, the channel is #2 in Urban India. In the entertainment space, hindi movie channel ‘Rishtey Cineplex’ and factual entertainment channel ‘FYI’ and in the digital Over The Top or OTT space, ‘VOOT’ were launched. During the quarter, Bookmyshow continued to attract healthy traffic by selling 30+ mn tickets. Bookmyshow raised USD $75 mn fresh round of funding from the investors. NW18 invested ` 191 crores and maintained its shareholding interest as the largest shareholder.

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