RIL consolidated Q3 net profit rises 12.5% to Rs13,101 cr
25 January 2021
Reliance Industries Ltd (RIL) has reported a 12.5 per cent increase in its consolidated net profit at Rs13,101 crore for the quarter ended 31 December 2020 against a net profit of Rs11,640 crore in the year-ago quarter on the back of robust growth in retail and digital services segments.
Reliance said its consolidated net profit grew more than 40 per cent sequentially, with Jio showing a 15.5 per cent QoQ growth in profit and 4.1 per cent rise in ARPU, adding that its profit also gained from rising demand for petrochemicals.
Reliance’s profit was also boosted by a fall in total expenditure and reduced tax expenses.
Revenue declined 23.1 per cent year-on-year to Rs1.18 lakh crore from 1.2 lakh crore in the previous fiscal.
Operating profit also fell 5.2 per cent to Rs21,566 crore, although operating margin widened to 18.3 per cent from 14.8 per cent earlier.
RIL’s stand-alone net profit before exceptional item for the quarter was Rs8,744 crore ($ 1.2 billion) higher by 33.6 per cent. Cash profit before exceptional item for the quarter was Rs9,376 crore ($ 1.3 billion) higher by 30.2 per cent.
Oil and gas (exploration & production) business reported a 21.4 percent sequential growth in revenue at Rs 431 crore in Q3FY21 due to higher commodity price realisation and incremental production from R-Cluster.
In December, Reliance Industries and BP started production from the R Cluster, ultra-deep-water gas field in block KG D6 off the east coast of India. Both are developing three deepwater gas projects in block KG D6– R Cluster, Satellites Cluster and MJ–which together are expected to meet around 15 percent of India's gas demand by 2023.
RIL’s exports for the quarter was was 8.5 per cent lower at Rs31,559 crore ($4.3 billion).
Jio Platforms Ltd saw revenue, including access revenues, for the quarter rising 5.3 per cent to Rs22,858 crore ($ 3.1 billion).
Jio Platforms has achieved a milestone this quarter with annualised operating revenue run-rate of $10 billion with strong revenue and EBITDA growth, said the company in its BSE filing.
Net profit for the quarter was Rs3,489 crore ($ 477 million) growth of 15.5 per cent while EBITDA for the quarter increased by 6.4 per cent to Rs8,483 crore ($ 1.2 billion).
Reliance retail reported an 88.1 per cent jump in its consolidated net profit at Rs1,830 crore ($ 250 million) for the fiscal third quarter ended 31 December 2020, while cash profit for the quarter was higher by 76.3 per cent at Rs2,482 crore ($340 million).
Retail's EBITDA surged 53.9 per cent sequentially to a record Rs3,087 crore with margin expansion of 380 bps QoQ at 9.3 per cent for the quarter ended December 2020, whereas revenue from operations declined 9.7 per cent QoQ to Rs 33,018 crore for the quarter and value of sales and services for Q3FY21 declined by 8 per cent QoQ to Rs 37,845 crore.
“At a time when the Indian economy is poised for a confident recovery, we at Reliance are humbled that we have been able to contribute to it with our company’s impressive performance in the third quarter of FY21. We have delivered strong operational results during the quarter with a robust revival in O2C and retail segments, and a steady growth in our digital services business. I am proud that Reliance has employed 50,000 more people since March 2020,” Mukesh D. Ambani, chairman and managing director of Reliance Industries Limited, said..
“I am especially pleased that the world is now closing ranks for a strong global action on Climate Change. This gives Reliance the right opportunity to accelerate our own ambitious New Energy and New Materials business wedded to the vision of clean and green development. In line with this vision, our Oil-to-Chemicals (O2C) business has formally reorganised its reporting segments to reflect our new strategy and management matrix for this enterprise. The reorganised structure will facilitate holistic and agile decision making and enable us to pursue attractive new opportunities for growth, with strategic partnerships with the best and the biggest in this business globally,” he added.
Reliance said outstanding debt as on December 2020 was Rs 2,57,413 crore and cash & cash equivalents were at Rs 2,20,524 crore. "Balance capital commitment receivables (on account of Rights issue) are in excess of quarterend net debt levels."
RIL retained its domestic credit ratings of 'AAA/Stable' from CRISIL and 'AAA/Stable' from India Ratings, and an investment grade rating for its international debt from Moody’s as 'Baa2' and 'BBB+' from S&P.
Reliance shares hit a record high of Rs2,368 in September and have since corrected 13 per cent. During the quarter ended 31 December 2020, it was down 11 per cent but rallied 32 per cent in the calendar year.