Last updated: 23 Jan, 2021 | 03:40 am
Consumer segments, revival in Oil helps to beat estimates: Reliance Industries net profit (after exceptional items) rose 40.5% on-quarter to Rs 14,894 crore in Q3FY21, beating analyst estimates, driven by healthy bottomline rise in Consumer Businesses and a revival in Oil business. Analysts had earlier estimated a profit of about Rs 11,313 crore. Net Profit attributable to shareholders was Rs 13,101 crore.
Revenues rise: Consolidated revenue from operations for the quarter increased 6.7% on-quarter to Rs 1.23 lakh crore. RIL’s oil to chemicals business posted an increase of 10% at Rs 83,838 crore in revenue primarily on account of higher volumes in transportation fuels, PTA and Polyester. This quarter onwards, the company will disclose Oil to Chemicals as a different segment.
This is the first time that the company has not reported Gross Refining Margin- which signifies how much Reliance Industries earns for refining one barrel of crude. Last quarter, this had fallen to just $5.7 per barrel, from a high of $12 per barrel in Sep-2017. However, the company said that total throughput has increased from 16.8 MMT to 18.2 MMT on Q-o-Q basis due to improved product demand in Q3 and scheduled shutdown taken in Q2.
Margins improve: Operating margin widened to 18.3% from 14.8% earlier. This was due to a strong show by Retail and Jio. The quarter saw record quarterly EBITDA for Digital Services at Rs 8,942 crore. Consolidated EBITDA rose 12% QoQ to Rs 26,094 crore.
Reliance Jio sees another strong quarter: Reliance Jio’s Revenue from Operations rose 5.3% over the previous quarter to Rs 19,475 crore. Profit rose 15.5% QoQ to Rs 3,849 crore. Reliance Jio’s ARPU also expanded to Rs 151 in the quarter, from Rs 145 in the previous quarter. This is Jio’s 13th consecutive quarter where it has posted a profit. The telco ended the quarter with 410.8 million users. Jio holds the key to Reliance Industries’ transition from an Oil business to a Data Business.
Reliance Retail: The Covid-19 related restrictions had significantly disrupted the retail business across the country. Reliance Retail’s revenue dropped 10% QoQ to Rs 33,018 crore, impacted by the transfer out of the fuel retailing business to the RIL-BP JV and Covid-19 related disruptions. Retail segment reported an EBITDA of Rs 3,087 crore, up 54% QoQ. RIL said that store footfalls are still lower than pre-Covid levels, with 96% stores opened. Only half of these were fully operational.
The growth in Consumer Businesses (Reliance Retail and Reliance Jio) have offset lower business in the O2C segment. The consumer-facing businesses of telecom and retail now contribute to more than 50% of total EBITDA. The bottomline was also aided by a 29% drop in finance cost.
As it stands today, the future growth and the roadmap of the company is oriented towards its consumer businesses (Reliance Retail, Jio and Jio Platforms). As the economy improves further, Reliance Industries would continue to see improvement in its business in the upcoming quarters.