All-round growth propels Reliance profit 9.7% in Q2

Overall Ebitda margins improved 80 basis points year-on-year to 19.4 per cent of consolidated revenues, while core Ebitda margins (excluding other income) rose 110 basis points to 18 per cent of net sales.

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Interest expenses, however, continued to grow in double digits, rising 13.5 per cent year-on-year, outpacing net sales and potentially weighing on earnings should commodity or crude prices rise.

Reliance Jio, the company’stelecom and digital services division, was the largest contributor to year-on-year growth in consolidated net profit. Ebit for the division increased 22.4 per cent to %12,065 crore, accounting for 43 per cent of the incremental growth in RIL’s consolidated Ebit.

However, net profit for the digital services division rose only 12.8 percent year-on-year, reflecting an 875 percent jump in interest expenses in the quarter.