Reliance Industries : Financial performance for the quarter/half year ended 30th September 2017

Mumbai, 13th October 2017

QUARTERLY CONSOLIDATED NET PROFIT OF ` 8,109 CRORE ($ 1.2 BILLION), UP 12.5% QUARTERLY CONSOLIDATED PBDIT OF ` 17,896 CRORE ($ 2.7 BILLION), UP 32.2% RECORD QUARTERLY PETROCHEMICALS SEGMENT EBIT

POSITIVE EBIT CONTRIBUTION FROM DIGITAL SERVICES SEGMENT (JIO) RECORD QUARTERLY STANDALONE NET PROFIT ` 8,265 CRORE ($ 1.3 BILLION), UP 7.3%

• Revenue increased by 23.9% to ` 101,169 crore ($ 15.5 billion)

• PBDIT increased by 32.2% to ` 17,896 crore ($ 2.7 billion)

• Profit Before Tax increased by 14.7% to ` 11,337 crore ($ 1.7 billion)

• Cash Profit increased by 27.8% to ` 13,171 crore ($ 2.0 billion)

• Net Profit increased by 12.5% to ` 8,109 crore ($ 1.2 billion)

  HIGHLIGHTS OF QUARTER'S PERFORMANCE (STANDALONE)

• Revenue increased by 16.8% to ` 75,165 crore ($ 11.5 billion)

• Exports increased by 10.2% to ` 41,560 crore ($ 6.4 billion)

• PBDIT increased by 17.2% to ` 15,040 crore ($ 2.3 billion)

• Profit Before Tax increased by 12.6% to ` 11,458 crore ($ 1.8 billion)

• Cash Profit increased by 14.5% to ` 11,432 crore ($ 1.8 billion)

• Net Profit increased by 7.3% to ` 8,265 crore ($ 1.3 billion)

• Gross Refining Margin (GRM) of $ 12.0/bbl for the quarter

  CORPORATE HIGHLIGHTS FOR THE QUARTER (2Q FY18)

• Reliance has started operations of its ROGC cracker, MEG and LLDPE plants at Jamnagar Currently, these plants are under stabilization.

• Reliance Retail acquired 40% stake in Genesis Luxury Fashion Private Limited, which operates a rich portfolio of brands such as Armani, Burberry, Coach, Michael Kors and many others.

• RIL acquired equity stake in Balaji Telefilms Limited, which is in the Media and Entertainment industry. This investment in content production (including digital content) is in line with RIL's commitment to invest and grow in digital and media businesses.

• RIL participated and was declared winner in an on-line e-bidding process held by Allahabad Bank (leader of banking consortium) to sell / dispose-off assets of Kemrock Industries & Exports Limited, Vadodara (Gujarat). These assets will pave the way for Reliance to foray into new materials (Composites and Carbon Fibre) and further strengthen its petrochemicals business portfolio.

• RIL was adjudged Global Winner of 'The DuPont Operational Excellence Award - 2017'.

• The Company has issued and allotted 308,03,34,238 equity shares to the eligible holders of equity shares on the book closure date (i.e., 09th September, 2017) as bonus equity shares by capitalizing reserves on 13th September, 2017.

The results also reflect strong underlying fundamentals of our refining and petrochemicals businesses. Sustained demand growth coupled with supply disruptions further tightened demand- supply balances globally during the quarter. The benefits of optimizing our business through new projects are beginning to emerge. The structural strength in energy and materials business environment augurs well for our new capacities which are coming on-line this year.

Our retail business has delivered broad based, sustainable and profitable growth through improved operational excellence.

The world is transforming, turning digital and India is not going to be left behind. India is ready to go digital, move from voice to data and Jio is creating the foundation of data for the next generation business. The rapid uptake of Jio services reflects the latent need of the society. We are confident that Jio will bring significant benefits to the Indian economy and the Indian customers and will take India to a much higher pedestal. We are focussed on providing multi-layered digital services on top of the basic connectivity service to optimally utilise our world class infrastructure.

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. As always, the Group has demonstrated excellence in execution, vision and commercial acumen."

For the quarter ended 30th September 2017, RIL achieved revenue of ` 101,169 crore ($ 15.5 billion), an increase of 23.9% as compared to ` 81,651 crore in the corresponding period of the previous year. Increase in revenue is primarily on account of increase in prices and volumes in refining, petrochemical and retail businesses. Further, the consolidated revenues reflect the commencement of commercial operations of RJIL's Wireless Telecommunication Network during the quarter.

Exports (including deemed exports) from India refining and petrochemical operations were higher by 10.2% at ` 41,560 crore ($ 6.4 billion) as against ` 37,717 crore in the corresponding period of the previous year due to higher volumes and product prices.

Other expenditure increased by 35.8% to ` 12,323 crore ($ 1.9 billion) as against ` 9,073 crore in corresponding period of the previous year primarily due to network expenses and access charges pertaining to the digital services business post commencement of commercial operations.

Operating profit before other income and depreciation increased by 39.4% to ` 15,565 crore ($ 2.4 billion) from ` 11,164 crore in the corresponding period of the previous year. Strong operating performance was driven by the refining, petrochemicals, retail businesses and positive contribution from digital services starting from this quarter.

Depreciation (including depletion and amortization) was ` 4,287 crore ($ 657 million) as compared to

` 2,774 crore in corresponding period of the previous year. The increase was mainly on account of commencement of commercial operations of RJIL's Wireless Telecommunication Network.

Finance cost was at ` 2,272 crore ($ 348 million) as against ` 883 crore in corresponding period of the previous year primarily on account of finance cost related to digital services business.

Profit after tax was higher by 12.5% at ` 8,109 crore ($ 1.2 billion) as against ` 7,209 crore in the corresponding period of the previous year.