The company made an exceptional profit of Rs 2,872 crore from the sale of shale gas assets.
Billionaire Mukesh Ambani’s Reliance Industries Ltd on Friday reported its best quarterly performance in October-December 2021, helped by sharp gains in the two ‘rupees’ – refining and retail, a recent spurt in growth and one-time gains at Jio. Happened. From the sale of the US shale gas business.
The oil-to-retail-to-telecom group’s consolidated net profit rose 35.6 per cent sequentially and 41.5 per cent over the year-ago period to Rs 18,549 crore, the firm said in a statement.
The country’s largest company’s consolidated revenue by market value grew 9.5 per cent in the last three months and 52.2 per cent year-on-year to a record Rs 209,823 crore.
EBITDA or earnings before interest, tax, depreciation and amortization climbed 30 per cent to a record Rs 33,886 crore. Three-quarters of that came from its traditional oil business as higher prices and return demand from a booming economy helped earnings.
But the company, which declared itself net debt-free during the pandemic, saw its borrowings exceed cash in the third quarter of the current fiscal.
Refinance liabilities for telecom spectrum saw a gross debt of Rs 244,708 crore exceeding the cash balance of Rs 241,846 crore.
The company made an exceptional profit of Rs 2,872 crore from the sale of shale gas assets.
The festive demand helped bring the retail scale closer to the pre-COVID level of income.
While retail delivered an all-time high revenue and EBITDA, digital services (which includes telecom) crossed Rs 25,000 crore revenue and operating profit crossed Rs 10,000 crore.
Consumer businesses contributed Rs 75,000 crore to the revenue.
The oil and gas business segment returned to profitability as crude oil prices rose and higher volumes saw oil-to-chemical (O2C) revenues rise and stabilize gas production from new fields in the eastern offshore KG-D6 block. Reliance’s capital expenditure for the quarter ended December 31, 2021 was Rs 27,582 crore.
Reliance operates four business verticals – its O2C business includes its oil refineries, petrochemical plants and fuel retail business; retail business with brick-and-mortar stores and e-commerce; digital services covering telecom arm Jio; and the new energy business.
Reliance Retail Ventures Ltd’s EBITDA increased to Rs 3,822 crore due to improvement in demand across categories during the festive season.
Net profit from retail business increased by 23.
4 per cent to Rs 2,259 crore.
Retail demand in jewellery, electronics and grocery supported the growth. In addition, lower restrictions on mobility and higher operating days were other drivers of retail segment sales during the quarter.
It opened 837 new stores during the quarter, taking the total number to 14,412. Revenue crossed Rs 50,000 crore for the first time, well above pre-pandemic levels.
O2C segment operating profit grew sequentially for the sixth consecutive quarter, driven by improvement in refining margins and prices.
EBITDA of Rs 13,530 crore was up 6.3 per cent quarter-on-quarter and 38.7 per cent year-on-year.
Inventory gains and recovery in petrol, diesel and jet fuel assisted refining margin spread in the third quarter. Gas production provided a tailwind to earnings despite problems in chemicals.
Reliance’s oil and gas segment registered a year-on-year growth of 500 per cent with revenue of Rs 2,559 crore, with EBITDA segment of Rs 2,033 crore. This was due to the stabilization of production from the new fields in the KG-D6 block, bringing the total production to 18 million standard cubic meters per day.
Jio Platforms – the digital arm – reported 8.8 per cent higher net profit at Rs 3,795 crore as the telecom segment’s average revenue per user rose to Rs 151.60 per month from Rs 143.6 in the previous quarter and Rs 151 in October-December 2020. ,
Jio’s customer base grew, helped by its budget smartphone Jiophone Next.
It added 10.2 million subscribers in Q3FY22 but its overall subscriber base at 421 million was down by 8.4 million over the previous quarter, primarily driven by SIM consolidation.
Segment Ebitda crossed Rs 10,000 crore mark for the first time. But the full impact of the recent tariff hike will be visible in the fourth quarter (January-March).
Commenting on the results, Mukesh D Ambani, Chairman and Managing Director, Reliance Industries Limited said that the company has posted its best quarterly performance in 3Q FY22 with strong contributions from all businesses.
“Both of our consumer businesses, retail and digital services, recorded the highest ever revenue and EBITDA.
During the quarter, we continued to focus on strategic investments and partnerships in our business to drive future growth.”
Retail business activity has returned to normal with strong growth in key consumption baskets on the back of the festive season and easing of the nationwide lockdown. He added that the digital services business has delivered broad-based, sustainable and profitable growth through improved customer engagement and customer mix.
“Reforms in global oil and energy markets supported strong fuel margins and helped deliver strong earnings to our O2C business. Our oil and gas segment delivered strong growth in EBITDA with volume growth and better realizations,” Ambani said That Reliance was making steady progress towards achieving the vision. of net carbon zero by 2035.
“Our recent partnerships and investments in technology leaders in the solar and green energy sectors exemplify our commitment to partner India and the world in the transition to clean and green energy.
We continue to drive development initiatives and collaborate with global leaders who share our vision of a sustainable future for our planet,” he said.
In recent months, Reliance has grown its clean energy business through acquisitions that will provide it with the technology and expertise to manufacture solar equipment and energy storage systems.
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