RIL posts 31 % YoY rise in Q1 consolidated net profit at Rs 13,233 crore

Revenue from operations came in at Rs 91,238 crore, down 43.8 per cent from the June 2019 quarter

Reliance Industries (RIL), the oil-to-telecom conglomerate, on Thursday reported a 30.9 per cent year-on-year (YoY) rise in its net profit at Rs 13,233 crore for the quarter ended June 30, 2020 (Q1FY21) - the period that witnessed major economic dislocations due to the Covid-19-induced lockdown. The numbers, the company said, included exceptional gain of Rs 4,966 crore (net of taxes of Rs 1,508 crore) due to profit on divestment of shares of Reliance BP Mobility Services.

RIL had logged a profit of Rs 10,104 crore in the corresponding quarter of the previous fiscal.

The company's revenue came in at Rs 100,929 crore, down 42 per cent as compared to Rs 1,74,087 crore in the corresponding period of the previous year. "The decline in revenue was primarily due to fall in oil-to-chemical (O2C) revenues, led by sharp decline of 57.6 per cent in average Brent crude price. Retail business also witnessed 17 per cent decline in revenues due to lockdown and restrictions in store operations," the company said in its press release. 

The numbers beat analysts' expectations. In a Bloomberg poll, 10 analysts had estimated RIL's net profit to come in at Rs 7,119 crore while 11 analysts estimated revenue to come in at Rs 1 trillion.
 

CLICK HERE TO READ ANALYSTS' EXPECTATIONS 
 

The company's consolidated earnings before interest, taxes, depreciation, and amortisation (EBITDA) came in at Rs 21,585 crore, down 11.8 per cent YoY against Rs 24,486 crore repored in the previous year quarter. 

Gross refining margin (GRM) for the period came in at $6.3 a barrel as against $8.1 a barrel in the year-ago quarter. Analysts, on average, had estimated GRM to come in at $6.5-9.0 a barrel. “RIL is expected to report GRM of $9 per barrel, helped by inventory gain and discounts offered to Indian refiners at the beginning of the quarter,” analysts with Motilal Oswal Financial Services (MOFSL) had said.

The company's telecom arm, Reliance Jio, posted a standalone net profit of Rs 2,520 crore, up 182.8 per cent per cent YoY while revenue from operations came in at Rs 16,557 crore, up 33.7 per cent YoY. Total customer base as on June 30 stood at 398.3 million and the average revenue per user (ARPU) was Rs 140.3 per subscriber per month.  

“Jio started with a vision of connecting everything by building a robust and secure wireless and digital network and extending the benefits of digital connectivity to everyone in India. Thirteen investors, which include the largest technology companies and investors globally, now share a common vision with us," said Mukesh D. Ambani, Chairman and Managing Director. 

Shares of the company on Thursday ended at Rs 2,108.65 apiece on the BSE, up 0.61 per cent.