Mukesh Ambani’s RIL Reports a Profit of 17% for the Q4 FY 2015-16

Reliance Industries Limited (RIL), India’s largest conglomerate led by Mukesh Ambani, posted on Friday 22 April 2016 its final performance of the final quarter of the financial year 2015-2016 which ended on 31 March 2016. The highlight of the report was that RIL witnessed a net profit increase of 17.3% to INR 7,320 crore ($ 1.1 billion).

While the total turnover (consolidated revenue) decreased by 8.9% from 73, 341 crore to 64,569 crore, cash profit increased by more than 13%. Standalone value of exports decreased by 17.5% to INR 30,935 crore ($ 4.7 billion). Other than Jio’s spectrum sharing pact for using 800 MHz across 17 circles with Anil Ambani-led Reliance Communications, RIL declared an interim dividend of 105%. This represents a payout of INR 3,717 crore ($ 561 million). Basic earnings per share (EPS) for the quarter ended 31st March 2016 was INR 25.1 as against INR 21.7 in the corresponding period of the previous year.

Commenting on the results, Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries Limited said: “FY 2015-16 has been a year of outstanding achievement for our downstream hydrocarbon businesses, notwithstanding persisting global economic uncertainty. Refining and petrochemicals delivered record operating and financial performances. Our refineries sustained double-digit GRMs and record levels of utilization through the year. Our balanced petrochemical portfolio, across products and feedstocks, helped capture the benefit of vastly improved naphtha cracking economics and favourable polymer markets. Reliance Retail continued its path of profitable expansion while maintaining a robust revenue growth of 23% during the year. Looking ahead, we are focused on ensuring a flawless start- up and stabilization of the new growth platforms across our hydrocarbon and consumer businesses. The commercial roll-out of our Jio services this year will digitally enable a billion Indians and propel growth for India and Reliance.”

As per the report by RIL, “RIL achieved a consolidated turnover of ` 296,091 crore ($ 44.7 billion) for the year ended 31st March 2016, a decrease of 23.8%, as compared to ` 388,494 crore in the previous year. The decline in turnover reflects sharp fall in feedstock and product prices during the year, partially offset by record crude throughput and higher petrochemicals volumes.”

RIL retained its domestic credit ratings of AAA from CRISIL and FITCH and an investment grade rating for its international debt from Moody’s as Baa2 and BBB+ from S&P.

Summary: Reliance Industries posted a profit growth rate of 17% for its final quarter of the financial year 2015-16 with an overall turnover of INR 64,569 crore.


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