RIL Q3 results: Net profit beats estimates, zooms 41% to ₹18,549 cr

Asia's richest man Mukesh Ambani-led Reliance Industries Ltd on Friday posted a consolidated net profit of ₹18,549 crore for the quarter ended 31 December, 2021 (Q3FY22). This is an increase of 41% from ₹13,101 crore reported in the year-ago period.

The oil-retail-telecom conglomerate's revenue from operations rose 54% to ₹1.91 lakh crore for the reporting quarter as compared to ₹1.23 lakh crore in the same period last year.

According to an average estimate by Bloomberg, Reliance net profit was seen at ₹15,264 crore and the revenue was pegged at ₹1.75 lakh crore.

On Friday, ahead of the results, Reliance scrip closed flat at ₹2,476 on NSE. The index heavyweight stock has risen 18.26% in the last one year.

“I am happy to announce that Reliance has posted best-ever quarterly performance in 3Q 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," Reliance Industries chairman Mukesh Ambani said.

The company reported an EBITDA (earnings before interest, tax, depreciation and amortisation) at ₹33,886 crore during the third quarter, higher by as much as 30%.

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, he said.

Reliance Jio, the telecom arm of the company's net profit rose 10% year-on-year to ₹3,615 crore for the December quarter. It was ₹3,291 crore in the last year period.

Jio's revenue rose 5% at ₹19,347 crore as against ₹18,492 crore in the last year period.

Average Revenue Per User (ARPU) during the quarter improved to ₹151.6 per subscriber per month as against ₹143.6 in the September quarter.

In RIL's dominant oil-to-chemicals (O2C) segment, the revenue for third quarter increased by 57% to ₹1.31 lakh crore, primarily on account of increase in crude oil prices and higher volumes.

"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," Ambani said.

Meanwhile, the retail arm of the company Reliance Retail's consolidated gross revenue rose 52% to ₹57,714 crore for the reporting quarter.

Reliance Retail reported a net profit of ₹2,259 crore in the reporting quarter, higher by 23% over last year period.

As many as 837 stores were opened during the quarter, taking the total operational physical stores to 14,412.

"All time high retail revenues were recorded across all consumption baskets driven by highest ever store sales and sustained growth momentum in digital & new commerce. Consumer electronics and apparel & footwear doubled their business on the back of strong festive sales while grocery sustained its consistent and strong double-digit growth momentum," Reliance said in a filing.

"We are making steady progress towards achieving our vision of net carbon zero by 2035. Our recent partnerships and investments in technology leaders in the solar and green energy space is illustrative of our commitment to partner India and the world in the transition to clean and green energy. We continue to pursue growth initiatives and collaborate with global leaders who share our vision of a sustainable future for our planet,” Reliance Chairman further said.

During the quarter, the company divested all its shale gas assets and has exited from the shale gas business in North America. This transaction is reflected in the exceptional gain of ₹2,872 crore, accounted during the period.

This was partially offset by provisions for liabilities pertaining to GAPCO amounting to ₹36 crore.