Mukesh Ambani-led Reliance Industries Ltd, or RIL, reported a consolidated net profit of Rs 13,227 crore for the quarter ended March 2021 (Q4), more than double the Rs 6,348 crore reported in the year-ago quarter.
While the jump should be seen in the light of last year’s low base, when profit was lower on account of an exceptional loss of Rs 4,267 crore, the performance for Q4FY21 is largely in line with analysts’ expectations.
Revenue and Ebitda, however, beat estimates (Ebitda is earnings before interest, tax, depreciation, and amortisation).
The top line, or revenue from operations, in the period under review grew 9.6 per cent year-on-year (YoY) to Rs 1.5 trillion, led by strong performance of its telecom and retail business and healthy growth in the O2C (oil-to-chemicals) segment.
For the full year ended March 2021, RIL’s consolidated revenue from operations was Rs 4.67 trillion down 21.9 per cent as compared to Rs 5.98 trillion in the previous year.
Net profit at Rs 49,128 crore was up 24.8 per cent YoY from Rs 39,354 crore.
According to Bloomberg consensus estimates, the top line was seen at Rs 1.39 trillion in Q4, Ebitda at Rs 23,544 crore, and net profit at Rs 13,704 crore.
During the March quarter, RIL incurred an exception gain of Rs 797 crore. However, other income fell sharply by 16.6 per cent YoY to Rs 3,881 crore. The exceptional gain was on account of the sale of Marcellus Assets—Chevron JV, amounting to Rs 850 crore, partially offset by a Rs 53 crore provision relating to claims on divestment of GAPCO. In segment-wise performance, O2C contributed the most both at revenue as well as Ebitda levels in the March quarter with Rs 1.01 trillion and Rs 11,407 crore, respectively. With global growth recovering, sequential performance was much better with the O2C top line up 20 per cent and Ebitda rising 17 per cent. “We have registered robust recovery in O2C and retail segment, and resilient growth in Digital Services business. Sustained high utilisation rates across sites and improvement in downstream product deltas as well as transportation fuel margins aided O2C earnings growth…” said Mukesh D Ambani, chairman and MD director of RIL, in a statement.