Reliance Industries : RIL's Q4 (FY 2016-17) Financial and Operational Performance

Mumbai, 24th April 2017

RECORD ANNUAL CONSOLIDATED NET PROFIT OF ` 29,901 CRORE ($ 4.6 BILLION), UP 18.8% RECORD ANNUAL CONSOLIDATED PBDIT OF ` 55,529 CRORE ($ 8.6 BILLION), UP 12.4% QUARTERLY CONSOLIDATED NET PROFIT OF ` 8,046 CRORE ($ 1.2 BILLION), UP 16.6% QUARTERLY CONSOLIDATED PBDIT OF ` 14,164 CRORE ($ 2.2 BILLION), UP 6.4%

• Revenue (turnover) increased by 45.2% to ` 92,889 crore ($ 14.3 billion)

• PBDIT increased by 6.4% to ` 14,164 crore ($ 2.2 billion)

• Profit Before Tax increased by 9.9% to ` 10,254 crore ($ 1.6 billion)

• Cash Profit increased by 14.4% to ` 11,813 crore ($ 1.8 billion)

• Net Profit increased by 16.6% to ` 8,046 crore ($ 1.2 billion)

  HIGHLIGHTS OF QUARTER'S PERFORMANCE (STANDALONE)

• Revenue (turnover) increased by 37.7% to ` 74,598 crore ($ 11.5 billion)

• Exports increased by 25.2% to ` 38,718 crore ($ 6.0 billion)

• PBDIT increased by 1.4% to ` 12,651 crore ($ 2.0 billion)

• Profit Before Tax increased by 4.6% to ` 10,007 crore ($ 1.5 billion)

• Cash Profit increased by 10.2% to ` 10,816 crore ($ 1.7 billion)

• Net Profit increased by 12.8% to ` 8,151 crore ($ 1.3 billion)

• Gross Refining Margin (GRM) of $ 11.5/bbl for the quarter

  CORPORATE HIGHLIGHTS FOR THE QUARTER (4Q FY17)

• In January 2017, Reliance - Sibur JV announced plans to set up South Asia's first Halogenated Butyl Rubber unit at Jamnagar.

• In February 2017, Jio Family reached 100 Million subscribers in 170 days. This is the fastest achieved by any start-up technology company in the world.

• In March 2017, Reliance commenced commercial production from its Coal Bed Methane (CBM) block Sohagpur (West). The production from RIL's Sohagpur CBM fields will gradually ramp-up in the next 15-18 months making RIL among the largest unconventional natural gas producers in India.

• During the quarter, Reliance completed world's largest and most complex ethane project. It commissioned ethane receipt and handling facilities and commenced ethane cracking at its Dahej Manufacturing facility in Gujarat in a record time of less than 3 years.

• Para-Xylene, Cracker and downstream projects (MEG, Linear Low density and Low density Polyethylene) as well as Gasification which is linked to RIL`s DTA refinery, have now been installed, mechanically complete and are in various stages of pre-commissioning and commissioning. The installation and mechanical completion for the gasification linked to RIL`s SEZ refinery has also been substantially achieved.

Operationally, we continue to scale new heights. RIL generated its highest ever annual profits at

` 29,901 crore, registering a growth of 18.8% on Y-o-Y basis. Refining and petrochemicals businesses achieved record levels of profitability, underpinned by our ability to access feedstock competitively from global markets, maintain high operating rates and place products in growth markets. With ongoing projects our portfolio will become significantly more robust and integrated, securing long-term profitable growth.

Reliance Retail has displayed encouraging performance with revenues growing by 60.2% and EBITDA by 40.4% on YoY basis. In digital services, the Jio movement is set to transform India. Jio is witnessing the largest migration from free to paid services in history. Jio is committed to provide its customers the highest quality and the world's most affordable data and voice services. "

FY 2016-17: FINANCIAL PERFORMANCE REVIEW AND ANALYSIS (CONSOLIDATED)

RIL achieved a consolidated turnover of ` 330,180 crore ($ 50.9 billion), an increase of 12.6%, as compared to ` 293,298 crore in the previous year. Increase in revenue is primarily on account of increase in prices of refining and petrochemical products partially offset by lower volumes from E&P business. Turnover was also boosted by robust growth in retail business which recorded a 60.2% surge in turnover to ` 33,765 crore. Brent crude oil price averaged $ 48.6/bbl in FY17 as compared

to $ 47.5/bbl in the previous year. Exports (including deemed export) from India were marginally higher at ` 147,755 crore ($ 22.8 billion) as against ` 146,855 crore in the previous year.

Strong refining and petrochemicals margin environment contributed to higher operating profits for the year. Gross refining margins recorded an eight-year-high of $ 11.0/bbl whereas petrochemicals EBIT margin were at five year high level of 14.0%. Operating profit before other income and depreciation increased by 10.8% on a Y-o-Y basis to ` 46,194 crore ($ 7.1 billion) from ` 41,704 crore in the previous year. Profit after tax (excluding exceptional item) was higher by 18.8% at ` 29,901 crore as against ` 25,171 crore in the previous year.

4Q FY 2016-17: FINANCIAL PERFORMANCE REVIEW AND ANALYSIS (CONSOLIDATED)

For the quarter ended 31st March 2017, RIL achieved a turnover of ` 92,889 crore ($ 14.3 billion), an increase of 45.2%, as compared to ` 63,954 crore in the corresponding period of the previous year. Increase in revenue is primarily on account of increase in prices of refining and petrochemical products on the back of higher oil prices. Turnover was also boosted by robust growth in retail business.

Cost of raw materials increased by 64.1% to ` 47,710 crore ($ 7.4 billion) from ` 29,065 crore on Y- o-Y basis primarily on account of 58% increase in crude prices.

Exports (including deemed exports) from India operations were higher by 25.2% at ` 38,718 crore ($

6.0 billion) as against ` 30,935 crore in the corresponding period of the previous year.

Employee cost increased by 28.3% at ` 2,366 crore ($ 365 million) as against ` 1,844 crore in corresponding period of the previous year due to increased employee base and provisioning for performance linked incentives.

Other expenditure increased by 12.0% to ` 10,593 crore ($ 1.6 billion) as against ` 9,458 crore in corresponding period of the previous year primarily due to increase in power & fuel expenses with new capacity commissioning, and higher selling expenses.