Jio’s Boost to Reliance: Rs. 9459 cr first quarter profit
Reliance reported on Friday a profit of Rs. 9459 crores. This was the record net profit for the April-June first quarter. Jio’s boost to Reliance gave it near double earnings from its mainstay petrochemical business.
The profit margin has gone up a whopping 18% in the year 2018-19 as compared to the previous year’s profit in the same time period. Rs. 8021 crores were yesteryear’s result. Revenue was up 56.5 percent to Rs 1,41,699 crore. The April-June 2017 profit has been taken after excluding the Rs 1,087 crore exceptional income from the sale of stake in Gulf Africa Petroleum Corp.
Reliance said pre-tax profit from the petrochemical business was up 94.9 per cent to Rs 7,857 crore on better margins.
RIL Chairman and Managing Director Mukesh Ambani said: “Our petrochemicals business generated record EBITDA with strong volumes and an upswing in polyester chain margins. Refining business performance remained steady despite the seasonal weakness in cracks.”
Reliance Jio’s standalone net profit increased 19.9 per cent to Rs. 612 crore. This was measured in a three month period which lasted till 30th June 2018. The company had registered a net profit of Rs 510 crore in January-March 2018. Its revenue from operations came in at Rs 8,109 crore in the June quarter. This was up nearly 14 per cent from the fourth quarter. The subscriber base stood at 215.3 million as on 30 June 2018.
Ambani said: “Jio continues on its path to drive digital revolution in India. We doubled our customer base and most user metrics in the last 12 months. 215 million customers within 22 months of start is a record that no technology company has been able to achieve anywhere in the world.” He also added, “continued strength in financial results of Jio despite competitive intensity reinforces the customer uptake of its services and its strong operating leverage”.
Jio‘s boost to Reliance has not only yielded them great profits but also brought about a revolution in the telecom industry.
