Published: Sat, October 14, 2017
Money | By Armando Alvarado

Reliance Jio sister arm sells 3 million devices, accessories

Reliance Jio sister arm sells 3 million devices, accessories

Mukesh Ambani-led Reliance Industries Limited (RIL) on Friday reported a 12.78 per cent increase in its consolidated net profit at Rs 8,097 crore for the second quarter ending September on the back of improved performance in company's petrochemical, refining and organized retail sector. The telco has posted revenue of Rs 6,147 crore and EBITDA of Rs 1,443 crore and EBITDA margin of 23.5% during the quarter. "I am delighted to share that this includes the financial performance of Jio, which had a positive Ebit (earnings before interest and tax) contribution in its first quarter of commercial operations".

The vertically-integrated company's petrochemicals business complemented the refining vertical's performance as well, with revenues increasing 25 percent over the year earlier to Rs 27,999 crore. With a subscriber base of 136.8 million as on September end, Reliance Jio reported a loss of Rs 271 crore quarter ended September 30th.

Reliance Jio's sister arm, Reliance Retail, said that it sold 3 million LYF smartphone and Mi-Fidevices and accessories through distribution channel during the quarter ended September.

Reliance Industries now has the market capitalisation in Indian capital market.

Cash and cash equivalents till Q2FY18 were at 77,014 crore ($ 11.8 billion) compared to Rs 77,226 crore as on 31st March 2017.

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. Jio's subscriber base as of September 2017 was 138.6 million. Jio, which is the fourth-largest mobile services operator in terms of users, said that its average revenue per customer stood at Rs 156 a month.

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The petrochemicals business put up a good performance during the quarter with revenues rising almost 25 per cent to Rs 27,999 crore following higher volumes in the polyester chain and firm prices. In Q2, Jio paid Rs 2,000 crore in IUC, Thakur said, adding benefit of lower ICU, which came into force from October 10, depends on the rise in voice calls.

Srikant said Jio has capitalised around Rs 90,000 crore of equity while it has a Rs 49,000 crore on debt its book.

"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".

The company said that the petrochemicals segment's Ebit was at a record level supported by strong volume growth, higher margins and improved product mix with ethane cracking stabilising at the Dahej and Hazira plants.

Consolidated profit was estimated at Rs 8,169 crore and EBITDA at Rs 13,178 crore with margin of 15.4 percent for the quarter, according to average of estimates of analysts polled by CNBC-TV18.

Revenue from its refining business increased 4.2 percent QoQ and 15.3 percent YoY to Rs 69,766 crore.

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