Reliance Industries Reports 6.8 per cent Rise in Profits

Mumbai: Reliance Industries Limited (RIL) reported a 6.8 per cent rise in its net profit in the first quarter of the financial year 2019-20. reported ANI on Friday.

RIL gave a statement to the stock exchanges that the company’s net profit for the first quarter of the financial year 2019-20 rose from Rs 9, 459 Crore to Rs 10, 104 Crore.

Revenue increased by 22.1 per cent to Rs 172, 956 Crores from Rs 141, 699 Crore in the same quarter of the last financial year.

RIL had a sharp increase in revenue from digital services and retail business, which entitles to an increase of 55 per cent year-on-year and 48 per cent year-on-year, respectively said RIL while explaining its growth in revenue.

The Company said that earnings before interest, tax, depreciation and amortisation (EBITDA) increased by five per cent from Rs 20, 957 Crore to Rs 22, 013 Crore in the corresponding period of the previous year. This increase was led by strong operating performance in the retail and digital services business.

Reliance Brands Limited, a subsidiary of the company, recently acquired 100 per cent stakes of Hamleys Global Holdings Limited (HGHL) through a special purpose vehicle company set up in the United Kingdom for a cash consideration of GBP 67.96 Million.

A gross total of 33.8 million subscribers were added to Reliance Jio. This translated into revenue growth of 44 per cent and EBITDA growth of 49 per cent.

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Moreover, reliance has entered into an agreement with Brookfield for an investment of Rs 25, 215 Crore in the Tower Infrastructure Trust.

“This is the single largest foreign investment in an Indian infrastructure vehicle and is a testimony from one of the largest infrastructures players globally, for the quality of assets created by Jio” read RIL’s statement.

“Our first-quarter earnings were strong despite the weak global macroeconomic environment and challenging hydrocarbon market conditions,” said Mukesh Ambani, Chairman and Managing Director, RIL.

“Our downstream businesses delivered resilient performance in an environment of slower demand growth and incremental supplies. The performance reflects the benefits of deep refining and petrochemical integration, chain economics and feedstock flexibility,” he said.

“The company continues to make major strides in its retail and digital services businesses led by a focus on growth markets with offerings in the right product segments and compelling value propositions,” said Ambani.

“We are pleased with the robust growth both in revenues and operating income for Reliance Retail. Our digital services business continues to transform the mobility market in India while scaling newer milestones,” he added.

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