Reliance Industries Q4 results: Revenue, Profit, Margin, Dividend and more
Last updated: 01 May, 2021 | 09:06 am
Revenues rise led by O2C segment: Consolidated revenue from operations for the quarter increased 11% YoY to Rs 1.54 lakh crore. The EBITDA (earnings before interest, taxes, depreciation, and amortization) rose marginally by 1.9% to Rs 26,602 crore. The main contributor to EBITDA growth was the O2C segment (17% growth). The net profit came in at Rs 14,995 crore in the Jan-March period compared to Rs 14,894 crore in the Oct-December. There has been a tremendous 129.1% YoY growth in net profit. The bottomline attributable to the owners of the company was Rs 13,227 crore in Q4FY21, up 108.4% YoY amid significant growth in Jio and recovery in Retail segments.
Margins improve: Margin widened to 43.9% from 40.9% earlier. The margins improved due to a strong show by O2C and retail. The quarter saw excellent quarterly EBITDA for O2C at Rs 11,407 crore and retail at Rs 3,623 crore (19.8% q-o-q growth).
Reliance Jio growth story: Reliance Jio ended financial year 20201 with 426.2 million customers. In Q4FY21, the company added 15.4 million customers. Jio Platform Ltd. (JPL) showed robust financial performance with FY21 EDIBTA of Rs 32,359 crore, a growth of 45% YoY. Quarterly EBITDA also increased 36% YoY to Rs 8,573 crore. The company has reported an ARPU of Rs 138, which declined compared to last quarter. It was Rs 151 in the previous quarter. The decline in number is driven by the transition to the 'Bill & Keep' bill effective 1st January 2021 and a lower number of days in the quarter (February). Jio has market leadership in 19 out of 22 circles.
Reliance Retail: Despite the tough and challenging times, the company has reported record quarterly revenue. The Fashion & Lifestyle and Grocery registered all-time high revenue. Also, the company has reported strong growth in consumer electronics in the quarter ended March. Reliance Retail reported a quarterly EBITDA of Rs 3,623 crore. up by 41% YoY. The growth is a result of excellent revenue, cost management, and investment income. The company added 836 stores in Q4FY21.
O2C: The O2C segment rebounded in the quarter with O2C EBITDA growing 16.9% QoQ to Rs 11,407 crore. The increase in number was led by strong volume and margin growth. The O2C business has also benefited from stable demand and supply disruption that benefited fuels, polyester margins, and polymers. The feedstock throughput is at 18.7 MMT, up 2.7% QoQ. The domestic oil production also increased marginally by 2.5% YoY.
Dividend and Rights issue: The company has declared a dividend of Rs 7. The Board has also made a call on the Rights Issue. The company last year announced a Rs 53,124 crore rights issue - India's largest-ever rights issue. The first part of the right issue was collected last year. The eligible investors will now have to pay the second installment of Rs 314.25 per share between 17 May 2021 to 31 May 2021 that will amount to Rs 13,281 crore.
No news on Aramco deal: After the Commercial partnerships with Facebook, Google, and other partners for the Make in India solution, the company is under pressure to grow at a faster pace. Before the results, the news suggested Reliance was in talks with Saudi Aramco on a cash and share deal for the sale of a 20 percent stake in its oil refining and petrochemical arm. However, no information is shared in the results about the deal.
The consumer-facing businesses of telecom and retail now contribute to more than 50% of total EBITDA. 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.