Reliance Jio Q2 loss at Rs 270.5 crore

Q2FY18 Preview Will Reliance Industries improve refining margins

Reliance Industries Ltd Chairman Mukesh Ambani

Refining, petrochemicals and oil and gas exploration businesses, which account for over 90 per cent of the company's overall revenue and profit, delivered an 11.5 per cent rise in quarterly revenue from operations to Rs 71,761 crore. A lower IUC benefits Jio.

Further, expenditure increased by 35.8 percent to Rs. 12,323 crore, as against Rs. 9,073 crore in the corresponding period of the previous year, primarily due to network expenses and access charges pertaining to the digital services business, post commencement of commercial operations.

Jio's subscriber base reached 138.6 million as on September 30, 2017, following the net subscriber addition of 15.3 million during the quarter. The company says that ARPU for Q2-17 was Rs 156.4 per month. "The structural strength in energy and materials business environment augurs well for our new capacities which are coming on-line this year", Mukesh Ambani, chairman & managing director of RIL, said while commenting on its performance during the quarter.

Standalone revenue for Reliance Jio stood at Rs 6,147.06 for FY18 Q2, according to a statement by Reliance Industries.

However, the company saw a loss of Rs 271 crore during the quarter in its telecom unit Reliance Jio.

Total debt of the group rose to Rs 2.14 trillion from Rs 1,96,601 crore in March 2017, while cash in hand inched down to Rs 77,014 crore from Rs 77,226 crore. Thakur said most of Jio's users have subscribed to its Rs 399 plan and very few have taken up the Rs 149 plan. Segment Ebit (earnings before interest and tax) also rose sharply by 45.2 percent to Rs 4,960 crore, "supported by strong volume growth, higher margins and improved product mix with ethane cracking stabilising at Dahej and Hazira", the company statement said.

On RJio, Ambani mentioned, "The strong financial results of Jio demonstrates the robust business model of Jio and the significant efficiencies that the Company has built through its investment in the latest 4G technology and right business strategy". Selling and distribution expenses were Rs 2,608.4 million.

"This is the highest profit in our petrochemicals business ever".

Of total capex, Jio eat up around Rs 7,000 crore and going forward in the second, it will remain at that level, Srikant said.

In the refining business, however, the numbers disappointed marginally as compared to the expectations.

The gross refining margin (GRM) was at $12 per barrel during the quarter under review as against $10.10 per barrel in year-ago period. Also GRM for the quarter stood at $12/barrel versus estimated $12.5/barrel. On a standalone basis, RIL's net profit increased by 7.3 per cent to Rs 8,265 crore during the September quarter while revenue increased by 16.8 per cent to Rs 75,165 crore.

In this quarter, revenue from the Refining and Marketing segment increased by 15.3% Y-o-Y to Rs 69,766 crore ($ 10.7 billion). Airtel in its prime had an ARPU of (Rs) 170 and Jio in first results has over (Rs) 156 ARPU and just Rs 260-odd crore loss.

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