Petrochemicals segment EBIT was at a record level of Rs 7,857 crore supported by strong y-o-y volume growth led by successful stabilisation of the world’s largest ROGC, its downstream units and PX-4. Reliance polyester chain expansions have fully stabilized and are operating at optimal levels. Fibre intermediate production during Q1 FY19 surged 12 per cent y-o-y to 2.4 MMT while polyester production increased 7 per cent y-o-y at 0.63 MMT.
RIL’s major MEG capacities are now based on ethylene produced from US Ethane and refinery off-gases as cracker feedstock. This has helped in offsetting the weaker MEG-Naphtha deltas. PVC margins have softened by 13 per cent q-o-q basis ($539/MT) due to strong EDC price environment. Both PP and PVC continue to maintain healthy margins well above 5-year averages. The domestic polymer demand increased by 10 per cent during the reported quarter. PP demand was higher by 13 per cent, aided by demand growth from automobile and raffia packaging. PE and PVC demand were up by 11 per cent and 5 per cent respectively mainly due to strength in pipe segment. RIL’s polymer production was up by 45 per cent to 1.42 MMT driven by sustainable volume growth following commissioning and stabilisation of ROGC complex. RIL maintained its leadership position in domestic polymer market with a 44 per cent market share.
To facilitate execution of EPR responsibility, Reliance has proposed creation of a digital platform and use of Block-chain technology to collect and incentivise such waste collection through designated PROs. This waste will be used for Recycling or EOL applications like Waste to Energy, Waste to fuel, Waste to Road and Waste to cement kiln. To promote the concept of recycling and waste segregation amongst end users, Reliance sustainability team has been working with Reliance Foundation to increase farmer’s awareness about collecting used plastics from fields, effectively handling in-usage and post-usage waste selling. Reliance is also creating a visible collection infrastructure across Mumbai and installing reverse vending machines for PET bottles at strategic locations together with appropriate communications.
In the retail segment, revenue for the reported period grew 123.7 per cent to Rs 25,890 crore from Rs 11,571 crore. Rapid store expansion along with superior customer value proposition across all consumption baskets supported revenue growth. The benefits of strong focus on cost control, scalability and operating leverage is reflecting in 3x EBITDA growth on y-o-y basis. Retail EBIT margin expanded to 4.1 per cent. Reliance Retail has now unprecedented reach across 5,200+ towns and cities, with 8,533 stores including 4,530 Jio Points.
"We continue to focus on strong delivery through operational excellence in our portfolio of businesses. Financial results of Q1 FY19 underscore the strength of the petrochemicals we have reinforced over the last investment cycle. Our petrochemicals business generated record EBITDA with strong volumes and an upswing in polyester chain margins. Our consumer businesses continue to scale new highs and now account for nearly 21 per cent of consolidated segment EBITDA. Retail business revenues have more than doubled and EBITDA has trebled on a y-o-y basis," Mukesh D Ambani, chairman and managing director, Reliance Industries Limited, said. (RR)
Fibre2Fashion News Desk – India