19% Rise in Reliance Industries Limited's First-Quarter Profit

Reliance Industries Limited's first quarter net profit saw a rise of 19% owing to the expansion of refining margins along with payment made in dollars.

Mumbai, Maharashtra, July 18, 2016 /India PRwire/ -- Owing to the widening of the company's refining margins and the depreciation of the rupee, Reliance Industries Limited's first-quarter profit went up by 19%. By the end of the quarter in June, the company's net income increased from the previous year's 63.7 billion rupees to 75.5 billion rupees.

Petrochemicals business

Reliance Industries Limited's (RIL) business portfolio includes multiple projects in the field of petrochemicals. RIL's expansion in the refining business will help increase the private conglomerate's fuel capacities. This would be a boon to the company as the fuel prices, and consumption of petrochemicals is on the rise in India.

An analyst at Emkay Global Financial Services Limited, Dhaval Joshi, stated that this positive movement might spell good news for shareholders of Reliance Industries.

Earning Profit

Most of the chemicals and fuels that are exported by RIL are paid for in dollars. The depreciation of the rupee translates into higher earnings since the payment is made in dollars. The rupee averaged at 66.94 per dollar during the quarter that ended in June. As compared to earning $ 10.40 per barrel a year earlier, Reliance earned $ 11.50 per crude-oil barrel this quarter. Its shares showed a 0.7% hike, raising the amount to Rs 1,012.20 at the time of closing in Mumbai.

Chairman speaks

Mukesh Ambani, CMD of Reliance Industries Limited, said that by harnessing integrated energy sources, Reliance managed to not only maintain but also improve its growth graph even as the world was struggling to comprehend the changes in the global economy.

Reliance's high-conversion refining system helped it garner larger discounts on crude oil and take advantage of the higher margins made available on middle distillates. He credited the growth of Reliance's petrochemicals business to the company's diverse product offerings and the high-quality feedstock.

He explained how the Jamnagar project would help boost Reliance's feedstock linkage as well as help in enhancing the company's integration synergies.

Reliance Jio

Reliance Jio is the company's 4G telecom network offering users high-speed data and voice services in addition to varied content streaming platforms. By offering free Jio SIM cards with Reliance LYF smart phones, the company increased its customer base during the pilot run itself. The average monthly usage by each user is recorded at over 26GB of data, and over 355 minutes of voice calling.

In an official statement, the world's largest start-up mentioned its 1.5 million subscriber base and stated that Jio would commence full-scale operations in the upcoming months.

Extensive coverage

Reliance Jio subsidiary of Reliance Industries is the only service provider to have been given a pan-India Unified License. The company has holdings in 22 circles in India, including the spectrum shared with Reliance Communications in 13 circles.

It has joined leading international telecom operators like Singtel, China Unicom, T-Mobile US, and Axiata Group to create a comprehensive profile which will benefit the telecom sector on a worldwide level.

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