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RIL Q3 PAT rises 38% YoY to Rs 20,539 cr

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On a consolidated basis, India's largest conglomerate Reliance Industries (RIL) reported a 37.9% jump in net profit to Rs 20,539 crore on a 57% rise in net sales to Rs 185,027 crore in Q3 FY22 over Q3 FY21.

Consolidated profit before tax stood at Rs 25,227 crore in Q3 FY22, rising 68.4% from Rs 14,982 crore posted in Q3 FY21. EBITDA for the quarter was at Rs 33,886 crore ($ 4.6 billion), higher by 29.9% year on year. EBITDA growth was driven by robust operating performance across businesses.

Finance cost decreased by 11.9% to Rs 3,812 crore in Q3 FY22 as against Rs 4,326 crore posted in the corresponding quarter of the previous year. Lower finance costs reflected large paydown of debt, other liabilities and stabilization of exchange rates. Outstanding debt as on 31 December 2021 was Rs 244,708 crore in Q3 FY22. Cash and cash equivalents as on 31 December 2021 were at Rs 241,846 crore.

The company posted an exceptional item (gain) of Rs 2,872 crore on account of divestment of shale gas assets, partially offset by provisions for liabilities pertaining to GAPCO amounting to Rs 36 crore.

Commenting on the results, Mukesh D. Ambani, chairman and MD of Reliance Industries said, I am happy to announce that Reliance has posted best-ever quarterly performance in Q3 FY22 with strong contribution from all our businesses. Both our consumer businesses, Retail and Digital services have recorded highest ever revenues and EBITDA. During this quarter, we continued to focus on strategic investments and partnerships across our businesses to drive future growth. Retail business activity has normalized with strong growth in key consumption baskets on the back of festive season and as lockdowns eased across the country. Our digital services business has delivered broad based, sustainable, and profitable growth through improved customer engagement and subscriber mix. The recovery in global oil and energy markets supported strong fuel margins and helped our O2C business deliver robust earnings. Our Oil & Gas segment delivered strong growth in EBITDA with volume growth and improved realization. We are making steady progress towards achieving our vision of Net Carbon Zero by 2035.

CONSOLIDATED JIO PLATFORMS:

The company's telecom segment, Reliance Jio Platforms reported an 8.9% year on year rise in net profit to Rs 3,795 crore in Q3 FY22 over Q3 FY21. Revenue from operations (net of GST) grew by 5.76% to Rs 20,597 crore in Q3 FY22 over Q3 FY21.

EBITDA stood at Rs 10,008 crore in Q3 FY22, higher by 18% year on year. EBITDA margin came at 48.6%, increasing 500 basis points year on year led by change in IUC regime and ARPU increase in connectivity business.

Average revenue per user for the quarter stood at Rs 151.6 per subscriber per month, with total data traffic jumping 47.8 per cent to 23.4 billion GB during the quarter. Reliance said full impact of tariff hike to be reflected in ARPU and financials over the next few quarters. Meanwhile, total customer base as on 31 December 2021 as of 421 million, net addition of 10.2 million customers on a year-on-year basis.

CONSOLIDATED RELIANCE RETAIL:

Reliance Retail's net profit for the quarter was at Rs 2,259 crore in Q3 FY22, higher by 23.4% year on year. Revenue from operations grew by 53.4% to Rs 50,654 crore in Q3 FY22 over Q3 FY21. The business posted a record EBITDA of Rs 3,822 crore, up by 23.8% YoY. The business continued to invest in network and infrastructure expansion. During the quarter, business added 837 stores taking the total count to 14,412 stores and 2.3 million sq ft. of warehousing space to bolster its service capabilities.

Reliance said JioMart continues to scale up rapidly with higher traffic, customers and orders driven by attractive offers, wider regional assortment and superior service levels. JioMart Kirana recorded new highs with aggressive merchant partner onboarding in existing and new markets. Meanwhile, the company's pharma business delivered strong performance with growth across all channels. The business scaled up its hyperlocal fulfilment through addition of more stores.

CONSOLIDATED OIL TO CHEMICALS (O2C):

Segment revenue for Q3 FY22 increased by 56.8% year on year to Rs 131,427 crore primarily on account of increase in crude oil prices and higher volumes. Segment EBITDA for Q3 FY22 improved by 38.7% year on year to Rs 13,530 crore primarily on account of better transportation fuel cracks and higher polyester chain delta.

EBITDA margin for the quarter declined by 130 basis points to 10.3% in Q3 FY22. Margin decline was primarily due to base effect driven by higher feedstock and product prices. Refinery throughput for Q3 FY22 was at 19.7 MMT, as compared to 18.2 MMT in Q3 FY21.

CONSOLIDATED OIL AND GAS (EXPLORATION & PRODUCTION) :

Segment revenues for Q3 FY22 increased by 494% Y-o-Y to Rs 2,559 crore. Segment EBITDA sharply increased to Rs 2,033 crore, with EBITDA margin of 79.4%. This was primarily due to ramp-up of gas production from KG D6 and improved price realization. Price realization for KG D6 gas improved 69.3% Q-o-Q to $6.13 /mmbtu in Q3 FY 22 vis-vis $3.62 /mmbtu in Q2 FY22 and $3.51 /mmtbtu in Q3 FY 21.

MEDIA BUSINESS:

Revenue from operations (net of GST) of media business for Q3 FY22 rose 16.5% year on year to Rs 1,657 crore, driven by strong growth in ad revenues in both news and entertainment businesses. EBITDA for Q3 FY22 grew 15.1% YoY to Rs 373 crore. EBITDA margins rose to 22.5% as profitability of news business, both TV and digital, saw a sharp improvement while entertainment business delivered strong margins despite increase in original content and high production value impact properties.

RIL's activities span hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, retail and digital services. The result was announced after market hours on Friday, 21 January 2022.

Shares of RIL were trading 0.69% higher at Rs 2,495.20 on BSE.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Mon, January 24 2022. 09:19 IST
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