RIL Reports Record Annual Profit, Jio User Base Jumps To Nearly 11 Crore
Analysts expect Jio to retain most of its customers Jio is seeing largest migration from free to paid services in history Reliance Industries annual net profit rose to record Rs 29,901 crore
Reliance Industries, led by billionaire Mukesh Ambani, reported a 12.8 per cent rise in its standalone net profit for the January-March quarter, beating the Street's estimates. The oil-to-telecom conglomerate reported a net profit of Rs 8,151 crore in March quarter, as compared to Rs 7,227 crore profit in the year-ago quarter. Meanwhile, revenues from operation of the energy giant surged 38 per cent to Rs 74,598 crore as against Rs 54,189 crore last year. Analysts polled by NDTV Profit had estimated its net profit at Rs 8,020 crore on revenues of Rs 67,221 crore.
On a consolidated basis, Reliance industries reported a net profit of Rs 8,046 crore on revenues of Rs 92,889 crore. On an annual basis, Reliance Industries reported a record consolidated net profit of Rs 29,901 crore, up 19 per cent.
Reliance said in the March quarter its gross refining margin, or profit earned on each barrel of crude processed - a key profitability gauge for a refiner - was $11.5 per barrel for the quarter, much higher than year-ago levels.
Jio, the telecom arm of Reliance industries, said that it continued to see a rapid ramp-up of subscriber base and as of March 31, 2017, there were 108.9 million subscribers on its network. Since commencement of services on September 5 2016, Jio has become the fastest growing technology company in the world, it added. Jio crossed 50 million subscribers in just 83 days, and 100 million in 170 days, adding at an average rate of 6 lakh subscribers per day.
"Jio is witnessing the largest migration from free to paid services in history. Jio is committed to provide its customers the highest quality and the world's most affordable data and voice services, "Mukesh Ambani, chairman and managing director, Reliance Industries Limited said.
From April 1, Jio moved to paid services and analysts expect Jio to retain majority of its customers due to aggressive tariff offers.
Commenting on the earnings, Mr Ambani said, "Operationally, we continue to scale new heights. RIL generated its highest ever annual profits at Rs 29,901 crore, registering a growth of 18.8% on year-on-year basis. Refining and petrochemicals businesses achieved record levels of profitability, underpinned by our ability to access feedstock competitively from global markets, maintain high operating rates and place products in growth markets. With ongoing projects our portfolio will become significantly more robust and integrated, securing long-term profitable growth."
Reliance Industries board has recommended a dividend of Rs 11 per share.
Reliance Industries shares closed 1.06 per cent higher at Rs 1,417.40 on the National Stock Exchange compared to 1.08 per cent gain in the broader Nifty.