Reliance Industries : Media Release - RIL's Q3 (FY 2016-17) Financial and Operational Performance

Mumbai, 16th January 2017

QUARTERLY CONSOLIDATED NET PROFIT OF ` 7,506 CRORE ($ 1.1 BILLION), UP 3.6% QUARTERLY CONSOLIDATED PBDIT OF ` 14,215 CRORE ($ 2.1 BILLION), UP 3.9% RECORD QUARTERLY STANDALONE NET PROFIT ` 8,022 CRORE ($ 1.2 BILLION), UP 10.0% FIRST PHASE OF NEW PARAXYLENE PROJECT COMMISSIONED

Reliance Industries Limited (RIL) today reported its financial performance for the quarter /nine months ended 31st December 2016. Highlights of the un-audited financial results as compared to the previous year are: CONSOLIDATED FINANCIAL PERFORMANCE

(In ` Crore)	3Q FY17*	2Q FY17*	3Q FY16*	% chg. w.r.t. 2Q FY17	% chg. w.r.t. 3Q FY16	9M FY17*	9M FY16*	% chg. w.r.t. 9M FY16
Turnover	84,189	81,651	72,513	3.1%	16.1%	237,291	229,512	3.4%
PBDIT	14,215	13,551	13,679	4.9%	3.9%	41,355	36,178	14.3%
Net Profit (Excluding Exceptional Items)	7,506	7,206	7,245	4.2%	3.6%	21,825	18,304	19.2%
Net Profit	7,506	7,206	7,245	4.2%	3.6%	21,825	22,614	(3.5%)
EPS (`)	25.4	24.4	24.6	4.1%	3.4%	74.0	76.8	(3.6%)
EPS (`) (Excluding Exceptional Item)	25.4	24.4	24.6	4.1%	3.4%	74.0	62.1	19.1%

(* Based on Ind AS)

HIGHLIGHTS OF QUARTER'S PERFORMANCE (CONSOLIDATED)

• Revenue (turnover) increased by 16.1% to ` 84,189 crore ($ 12.4 billion)

• PBDIT increased by 3.9% to ` 14,215 crore ($ 2.1 billion)

• Profit Before Tax increased by 3.7% to ` 10,213 crore ($ 1.5 billion)

• Cash Profit increased by 2.3% to ` 10,586 crore ($ 1.6 billion)

• Net Profit increased by 3.6% to ` 7,506 crore ($ 1.1 billion)

  HIGHLIGHTS OF QUARTER'S PERFORMANCE (STANDALONE)

• Revenue (turnover) increased by 9.0% to ` 66,606 crore ($ 9.8 billion)

• Exports increased by 4.0% to ` 38,038 crore ($ 5.6 billion)

• PBDIT increased by 8.8% to ` 13,629 crore ($ 2.0 billion)

• Profit Before Tax increased by 9.2% to ` 10,621 crore ($ 1.6 billion)

• Cash Profit increased by 7.6% to ` 10,374 crore ($ 1.5 billion)

• Net Profit increased by 10.0% to ` 8,022 crore ($ 1.2 billion)

• Gross Refining Margin (GRM) of $ 10.8/bbl for the quarter

  CORPORATE HIGHLIGHTS FOR THE QUARTER (3Q FY17)

• In November 2016, RIL and GE signed a global partnership agreement in the Industrial IOT (IIOT) space whereby RIL and GE will work together to build out joint applications on GE's Predix platform

• In November 2016, the world's first Very Large Ethane Carrier (VLEC) "ETHANE CRYSTAL" was received by Reliance. The VLECs will serve to transport Ethane from USA to India, and are the largest vessels ever built for transportation of Ethane at an industrial scale

• In December 2016, Reliance Jio Infocomm Limited (RJIL, a subsidiary of RIL), became the world's fastest growing technology company crossing 50 million subscribers in a record 83 days. RJIL also announced the launch of 'Jio Happy New Year Offer'

• In December 2016, RIL commissioned the first phase of new Paraxylene project at Jamnagar

Commenting on the results, Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries Limited said: "Our robust integrated platform, sound operational processes and business portfolio aligned to the needs of emerging India enabled us to deliver another record performance in challenging market conditions. The refining business has delivered eight consecutive quarters of double-digit GRMs, benefiting from the global demand for transportation fuels and improved product cracks.

We successfully commissioned the first phase of Paraxylene plant during the quarter, further deepening the linkage between our refining and petrochemicals operations. Our growth strategy focuses on creating sustainable returns for our shareholders through value-enhancing, high-return projects. We are executing well on our projects under construction and remain confident on delivering on our growth plans.

I am also delighted by our country's eagerness to adopt to a digital life as witnessed by the record- breaking launch of Jio. Its comprehensive ecosystem has enabled millions of Indians to lead a richer life through its offerings."

3Q FY 2016-17: FINANCIAL PERFORMANCE REVIEW AND ANALYSIS (CONSOLIDATED)

Result for the quarter / nine months ended 31st December 2016 are in compliance with Ind AS notified by the Ministry of Corporate Affairs. Consequently, result for the quarter ended 31st December 2015, Nine months ended 31st December 2015 and previous year ended 31st March 2016 have been restated to comply with Ind AS to make them comparable.

For the quarter ended 31st December 2016, RIL achieved a turnover of ` 84,189 crore ($ 12.4 billion), an increase of 16.1%, as compared to ` 72,513 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 led by 13% increase in Brent crude prices. Turnover was also boosted by robust growth in retail business.

Cost of raw materials increased by 24.3% to ` 46,774 crore ($ 6.9 billion) from ` 37,639 crore on Y- o-Y basis primarily on account of increase in feedstock prices and incremental sourcing of intermediate products.

Exports from India operations were higher by 4.0% at ` 38,038 crore ($ 5.6 billion) as against

` 36,564 crore in the corresponding period of the previous year.

Employee costs were lower by 3.1% at ` 1,894 crore ($ 279 million) as against ` 1,954 crore in corresponding period of the previous year due to VRS related expenses in the previous year.

Other expenditure increased by 27.5% to ` 10,257 crore ($ 1.5 billion) as against ` 8,047 crore in corresponding period of the previous year primarily due to increase in power and fuel expenses with new capacity commissioning, and increase in maintenance expenses on account of planned shutdown at Dahej and Jamnagar.

Operating profit before other income and depreciation increased by 2.7% on a Y-o-Y basis to ` 11,552 crore ($ 1.7 billion) from ` 11,248 crore in the previous year. Operating profit was led by strong operating performance from petrochemicals businesses, sustained strength in refining business and favorable exchange rate movement. This was partially offset by losses in Oil & Gas business due to lower volumes and weak domestic price environment.

Other income was higher at ` 2,736 crore ($ 403 million) as against ` 2,440 crore in corresponding period of the previous year primarily due to higher profit on sale of investments partially offset by lower interest income.

Depreciation (including depletion and amortization) was ` 2,793 crore ($ 411 million) as compared to

` 2,886 crore in corresponding period of the previous year.

Interest cost was at ` 1,209 crore ($ 178 million) as against ` 945 crore in corresponding period of the previous year, increase is primarily on account of higher average exchange rate for the quarter.

Profit after tax was higher by 3.6% at ` 7,506 crore ($ 1.1 billion) as against ` 7,245 crore in the corresponding period of the previous year.

Basic earnings per share (EPS) for the quarter ended 31st December 2016 was ` 25.4 as against `

24.6 in the corresponding period of the previous year.