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RIL net profit rises 13.5% to Rs 11,640 crore; Jio posts Rs 1,350 crore profit in Q3

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NEW DELHI: Reliance Industries (RIL) on Friday reported a 13.5 per cent rise in its consolidated net profit for the third quarter (Q3) ended December 2019 — on the back of continued rise in consumer businesses of retail and telecom.

RIL’s profit in Q3 came in at Rs 11,640 crore as against a net profit of Rs 10,251 crore posted in the same quarter previous year, the company said in a notification to exchanges, the company said in a statement.

This is the highest quarterly net profit earned by any private company, surpassing its own previous best of Rs 11,262 crore in the July-September 2019 period.

In terms of quarter-on-quarter growth, the oil-to-telecom major posted a rise of 3.35 per cent in its net profit, as compared to Rs 11,262 crore recorded for the second quarter ended September 2019.

Consumer businesses, which till last year accounted for a quarter of the company’s pre-tax profit, contributed a third of EBITDA (earnings before interest, tax, depreciation and amortisation) in the third quarter.

However, RIL’s consolidated revenue from operations fell 1.4 per cent to Rs 1,68,858 crore from Rs 1,71,300 crore posted same period last year.

While oil refining margins rose after six straight quarters of decline, the company opened 415 more retail stores and added 37.1 million subscribers to its Jio mobile phone service that helped increase the profitability of the venture. But the weakness in its traditional petrochemical businesses continued.

Meanwhile, Reliance Jio posted a 62.5 per cent jump in its standalone net profit at Rs 1,350 crore for the October-December quarter of FY 2019-20.

The telecom arm of Reliance Industries, Jio had posted a net profit of Rs 831 crore in the corresponding quarter a year ago.

RIL chairman and managing director Mukesh Ambani said, “Jio has continued on its unprecedented growth journey receiving overwhelming customer response for best in class mobile connectivity services. Jio is also determined to redefine the wireline infrastructure, home entertainment and enterprise market in India with its FTTx services which bundle best-in-class connectivity with bouquet of digital content and services.”

Reliance Jio subscriber base increased by 32.1 per cent as on December 31, 2019 on year-on-year basis to 37 crore and average revenue per user stood at Rs 128.4 during the quarter.

Jio crossed Rs 5,600 crore quarterly EBITDA for the first time and saw a 40 per cent data traffic growth and 30 per cent voice growth year on year, the company said.

Shares of RIL closed 42.95 points or 2.79 per cent higher at Rs 1,580.65 on the BSE index, while the stock finished 43.10 points or 2.80 per cent up at Rs 1,581 on NSE.

(With agency inputs)



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