The Indian conglomerate Reliance Industries (RIL) has announced its quarterly/yearly result ended March 31, 2017. The company recorded consolidated net profit of Rs. 29,901 crore ($4.6 billion), for the year showing the growth of 18.8 percent, against Rs.29,901 crore in the previous year while the quarterly net profit of company increased by 16.6 percent to Rs. 8,046 crore ($1.2 billion). Operating profit was led by robust performance from petrochemicals business and sustained strength in the refining business.
Reliance Industries Limited (RIL) is the second largest company in India in terms of revenue owning businesses from energy, petrochemicals, textiles, natural resources to retail, and telecommunications. Its newly found subsidiary Reliance Jio Infocomm Limited (Jio) has truly revolutionized the digital and telecommunications market in India.
Jio has become the fastest growing technology company in the world crossing 50 million subscribers in just 83 days and 100 million in 170 days. There were 108.9 million subscribers on the network as of 31st March 2017. During the quarter, Jio announced industry redefining tariff plans as it embarked upon the world’s largest migration from free to paid services.
RIL achieved a consolidated turnover of Rs 330,180crore ($50.9billion), an increase of 12.6%, as compared to Rs 293,298crore in the previous year.The increase in revenue is primarily on the account of increase in prices of refining and petrochemical products partially offset by lower volumes from E&P business. Turnover was also boosted by robust growth in retail business which recorded a 60.2% surge in turnover to Rs 33,765crore.
FY17 revenue of the company from the Petrochemicals segment increased by 12.2% Y-o-Y to Rs 92,472crore ($ 14.3billion), primarily due to increase in prices across polymers and polyester chain while Refining and Marketing segment increased by 6.8% Y-o-Y to Rs 250,833crore ($ 38.7billion).
During the quarter, Reliance completed world’s largest and most complex ethane project. It commissioned ethane receipt and handling facilities and commenced ethane cracking at its Dahej Manufacturing facility in Gujarat in a record time of less than 3 years.
The capital expenditure for the year ended 31st March 2017 was Rs.114,742 crore ($ 17.7billion) including exchange rate difference capitalization. Capital expenditure was principally on account of ongoing projects in the petrochemicals and refining business at Jamnagar, Dahej, Hazira, US Shale gas projects and Digital services business.
Read More on Reliance Industries
Want to be a guest author? Register Here to share your business knowledge with our readers.