Reliance Industries (RIL) reported a 31% jump in consolidated net profit to Rs 13,248 crore in Q1 June 2020 compared with Rs 10,141 crore in the corresponding period of last year.Consolidated total income for the quarter stood at Rs 95,626 crore, down 42.11% compared with Rs 165,199 crore year-on-year. The decline in revenue was primarily due to fall in O2C revenues, led by sharp decline of 57.6% in average Brent crude price. Retail business also witnessed 17% decline in revenues due to lockdown and restrictions in store operations. Overall decline in revenue was partially offset by increase in revenue of Digital services business with strong subscriber addition and significant improvement in ARPU.
EBITDA declined 11.8% to Rs 21,585 crore in Q1 FY21 over Q1 FY20. The decrease in EBITDA was primarily due to lower contribution from O2C business, which was impacted by significant demand destruction and margin pressure across transportation fuels and polyester chain. Lower realizations in export market also impacted the profitability despite higher regional benchmark margins. The margin pressure was partially offset by high asset utilization, integration benefits and cost optimization measures across sites. Closure of stores and restrictions on operations across the country due to COVID-19contributed to decrease in EBITDA of Retail business. This was partially offset by increase in EBITDA of Digital services business due to improved margins and continued subscriber momentum.
Profit before exceptional item and tax tumbled 40.54% to Rs 8,542 crore during the period under review. Current tax expense slumped 71.09% to Rs 923 crore in Q1 FY21 over Q1 FY20.
RIL reported exceptional gain of Rs 4,966 crore (net of taxes of Rs 1,508 crore) in Q1 FY21 due to profit on divestment of shares of Reliance BP Mobility Services.
Commenting on the results, Mukesh D. Ambani, chairman and managing director, RIL said: The severe demand destruction due to global lockdowns impacted our hydrocarbons business but the flexibility in our operations enabled us to operate at near normal levels and deliver industry-leading results. Our consumer facing businesses became the life-line for individuals and businesses with our retail and Jio teams working hard to ensure millions got essential goods and services through the lockdown. We completed the largest fund raise in Indian corporate history in this quarter.
Reliance Jio Infocomm's net profit surged 182.8% to Rs 2,520 crore on 33.7% increase in operating revenue to Rs 16,557 crore in Q1 FY21 over Q1 FY20. EBITDA jumped 55.4% to 7,281 crore during the period under review. EBITDA margin expanded 613 bps to 44% during the period under review.
ARPU during the quarter of Rs 140.3 per subscriber per month. Total wireless data traffic during the quarter of Rs 1,420 crore GB (30.2% YoY growth) with strong customer engagement and best-in-class network performance.
Jio Platforms has raised Rs 152,056 crore across thirteen investors which includes Facebook, Google, Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala, ADIA, TPG, L Catterton, Public Investment Fund of Saudi Arabia, Intel Capitaland Qualcomm Ventures. Reliance Industries, post completion of these investments, would hold 66.48% equity stake in Jio Platforms on a fully diluted basis.
Reliance Retail, however, witnessed a 17.20% YoY fall in revenue at Rs 31,633 crore. EBITDA declined 47.40% YoY to Rs 1,083 crore.
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