Reliance Industries fell 2.52% to Rs 1348.05 at 9:17 IST on BSE after consolidated net profit rose 9.79% to Rs 10362 crore on 18.60% rise in net sales to Rs 138659 crore in Q4 March 2019 over Q4 March 2018.
The result was announced after market hours on Thursday, 18 April 2019.Meanwhile, the S&P BSE Sensex was down 207.70 points, or 0.53% to 38,932.58.
On the BSE, 29,000 shares were traded in the counter so far compared with average daily volumes of 5.82 lakh shares in the past two weeks. The stock had hit a high of Rs 1364 and a low of Rs 1345.55 so far during the day. The stock hit a 52-week high of Rs 1,406.50 on 1 April 2019. The stock hit a 52-week low of Rs 907.10 on 30 May 2018.
Commenting on the results, Mukesh D. Ambani, chairman and managing director, Reliance Industries (RIL) said that during FY 2018-19, RIL achieved several milestones and made significant strides in building Reliance of the future. Reliance Retail crossed Rs 100,000 crore revenue milestone, Jio now serves over 300 million consumers and petrochemicals business delivered its highest ever earnings.
Reliance Jio reported 64.7% increase in its net profit to Rs 840 crore in Q4 March 2019. The company had recorded net profit of Rs 510 crore in the same quarter a year ago. The operating revenue of Reliance Jio rose 55.8% to Rs 11,106 crore during the reported quarter, compared to Rs 7,128 crore in the corresponding period of 2017-2018.
Jio's average revenue per user (ARPU) fell 8% to Rs 126.20 in Q4 March 2019 over Q4 March 2018.
RIL's organized retail business segment revenue jumped 51.6% to Rs 36,663 crore in Q4 March 2019 over Q4 March 2018. Segment EBIT rose 81% to 1,721 crore in Q4 March 2019 over Q4 March 2018. During the year, retail area under operations grew by 24.2% to 22 million square feet.
Meanwhile, RIL's gross refining margin (GRM) came in at $8.2 per barrel in Q4 March 2019. The figure was $8.8 and $11 per barrel in Q3 December 2018 and Q4 March 2018, respectively.
Q4 March 2019 revenue from the refining & marketing (R&M) segment decreased by 6.1% year-on-year (Y-o-Y) to Rs 87,844 crore ($12.7 billion) while segment EBIT declined by 25.5% Y-o-Y to Rs 4,176 crore ($ 603 million). R&M segment performance was impacted by lower crude throughput due to planned maintenance. Also, weak light and middle distillate product cracks impacted GRM.
RIL said its outstanding debt as on 31st March 2019 was Rs 287,505 crore ($41.6 billion) compared to Rs 218,763 crore as on 31st March 2018. Cash and cash equivalents as on 31st March 2019 were at Rs 133,027 crore ($19.2 billion) compared to Rs 78,063 crore as on 31st March, 2018.
Meanwhile, RIL clarified on 20 April 2019, that press stories suggesting that Reliance is involved in an arrangement that leads to cash payment for oil supplies to PDVSA via third parties are false and reckless.
Reliance has purchased Venezuelan crude oil from companies such as ROSNEFT long before the imposition of US sanctions, as they do get title to Venezuelan oil in return for reduction in their prior debt. Since sanctions were imposed, Reliance has made such purchases with the full knowledge and approval of the US Department of State (USDOS), and Reliance has informed USDOS of specific volumes and transactions. Such transactions do not lead to any consequent payment to PDVSA and do not violate U.S. sanctions or policies.
Reliance's price agreement with such sellers is at market and payments by Reliance for such supplies are settled in cash or by product supply bilaterally between Reliance and such sellers. It is false to suggest that Reliance would be settling such shipments via ROSNEFT to PDVSA. In these transactions, PDVSA is only the original physical supplier, as the crude oil originates in its export facilities.
Reliance Industries' activities span hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, retail and telecommunications.
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