Reliance Industry (RIL) on Thursday reported a moderate consolidated profit of Rs 39,588 crore ($ 5.7 billion) given the high crude prices in the last few months. It even recorded a 9.8% YoY rise to a quarterly net profit of Rs 10,362. This was opposed to the Street estimates of Rs 10,000 crore for Q4FY19.
Reliance has suffered low refining margins in this quarter. This has caused the standalone net profit for the quarter to drop to 1.6% to 8,556 crore ($ 1.2 billion). The gross refining margin (GRM) was $ 8.2/bbl for the quarter. The consolidated revenue is up 19.40 per cent YoY to Rs 1,54,110 crore in Q4FY19. PBDIT rose 16.30 per cent to Rs 24,047 crore.
REFINING & MARKETING BUSINESS
FY19 revenue from the Refining & Marketing segment increased by 28.7% Y-o-Y to ` 393,988 crore ($ 57 billion) from ` 306,095 crore, primarily on account of higher crude prices during the year. Segment EBIT has fallen 19.8% to ` 19,868 crore ($ 2.9 billion), impacted by dynamic crude prices, multi-year low gasoline and naphtha cracks.
PETROCHEMICALS BUSINESS
FY19 revenue from the Petrochemicals segment is up 37.3% Y-o-Y to ` 172,065 crore ($ 24.9 billion), primarily due to higher volumes and prices which reflected full benefits of ROGC and Paraxylene capacity expansion projects. Petrochemicals segment EBIT increased sharply by 51.9% to its highest ever level of ` 32,173 crore ($ 4.7 billion).
OIL AND GAS (EXPLORATION & PRODUCTION) BUSINESS
FY19 revenues for the Oil & Gas segment fell 3.8% Y-o-Y to ` 5,005 crore. Volumes from conventional fields and US shale were lower on account of natural decline and slowdown in development activity. Segment EBIT was at ` (1,379) crore as against ` (1,536) crore in the previous year. For the year, domestic production (RIL share) was at 58.9 Bcfe, down 25.4% Y-o-Y and in US Shale (RIL share) business was 94.5 Bcfe, down 32% Y-o-Y basis.
ORGANIZED RETAIL BUSINESS
Reliance Retail had record-breaking results of its revenue and profits growth for the year 2018-19. Segment Revenues for FY19 grew by 88.7% Y-o-Y to ₹ 130,566 crore as against ₹ 69,198 crore in the previous year. Business PBDIT for FY19 grew by 145.2% Y-o-Y to ₹ 6,201 crore as against ₹ 2,529 crore in previous year. During the year, retail area under operations grew by 24.2% to 22 Mn.sq.ft.
MEDIA BUSINESS
Network18 Media & Investments Limited reported 4QFY19 consolidated revenue of ` 1,231 crores due to higher base on account of movie ‘Padmaavat’ last year. 4Q Ex-film revenues dipped 7% YoY led by flux around implementation of the new tariff order, and some live entertainment projects and union budget coverage in the base quarter which were absent this year. FY19 ex-film revenue rose 7% YoY on regional growth and a reviving ad-environment. FY19 operating EBITDA was up 13% YoY despite Rs 131 Cr additional investments into regional channels, launch of FirstPost Print and Digital expansions (VOOT International & Kids, CricketNext). This was led by Regional News gestation losses compressing 42% YoY, and Business-as-usual Entertainment EBITDA margins rising to 9% (vs 5%).
In all, Reliance Industries had a decent performance in Q4FY18 with standalone revenue from operations of ₹ 11,106 crore (7.0% QoQ growth). They achieved a standalone EBITDA of ₹ 4,329 crore (6.8% QoQ growth) and EBITDA margin of 39.0%. Lastly, their standalone net profit was ₹ 840 crore.
