Sliding crude oil prices enhance Reliance earnings

Reliance Industries, India’s biggest Petrochemical Company posted better than expected Q4FY16 earnings amid a major setback in the world Crude oil prices. The falling  Crude oil prices enhanced the margins of its refinery business. Higher Petrochemical margins helped compensate the weakness in its exploration and production segment.

Billionaire Mukesh Ambani’s, Reliance Industries posted positive Q4 earnings, wherein its consolidated Net income rose to Rs 7398 crores in this quarter as against Rs 7290 crores in Q3FY16, an increase of 1 per cent. Company’s EBITDA came in at Rs. 12008 crores as against Rs. 11368 crores, an increase of 6 per cent. However, Revenues tumbled to Rs. 60252 crores in this quarter as compared to Rs. 68261 crores, a decrease of 12 per cent.

The Year on Year (YOY) results show that, Company’s consolidated Revenues fell 11 per cent which was Rs 67470 crores in the same quarter last year. EBITDA of company rose 22 per cent from Rs 9868 crores Y-O-Y. EBITDA margin stands at 19.9 per cent this quarter as compared to 14.6 per cent Y-O-Y. Net profit (PAT) too witnessed an increase of 16 per cent from Rs 6381 crores. 

On yearly basis Reliance Industries saw a drop in its consolidated Revenues at Rs. 276544 crores for the year ended March 2016 as compared to Rs 375435 crores for FY15, a decrease of 26.3 per cent. However, company’s EBITDA surged to Rs. 44257 crores for FY16 as compared to Rs 37364 crores in FY15, an increase of 18.4 per cent. Net profit too grew from Rs 23566 crores in FY15 to 27630 crore in FY16, an increase of 17.2 per cent.

Reliance Industries' stock closed at Rs 1039 on Friday i.e. on a flat note from the previous close. The lack of clarity in the launch of its much awaited Telecom service ‘Reliance Jio’ is refraining the RIL stock prices from gaining upside momentum.