Home FINANCE Reliance Industries Q3 net profit jumps 41.5% to Rs 18,549 crore

Reliance Industries Q3 net profit jumps 41.5% to Rs 18,549 crore

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NEW DELHI: Reliance Industries Limited (RIL) on Friday posted a 41.58 per cent jump in its consolidated net profit for the third quarter (Q3) ending December 31, 2021.
The company’s net profit came in at Rs 18,549 crore as compared to a profit of Rs 13,101 crore posted in same period last year.
RIL’s strong performance has been majorly boosted mainly by its refining and retail business segment.
It operates four business verticals — the oil-to-chemical (or O2C) business includes its oil refineries, petrochemical plants, and fuel retailing business; retail business that houses brick-and-mortar stores and e-commerce; digital services that cover telecom arm Jio; and new energy business.
Three-fourths of the incremental EBITDA came from O2C and oil and gas business on the back of higher prices and demand returning with bouncing back of economy.
O2C segment’s operating profit rose sequentially for the sixth straight quarter, aided by improved refining margins and prices. EBITDA at Rs 13,530 crore was up 6.3 per cent quarter-on-quarter and 38.7 per cent year-on-year.
Consolidated revenue of the nation’s biggest company by market value rose 9.5 per cent over the previous three months and 52.2 per cent year-on-year to Rs 209,823 crore.
In terms of quarter-on-quarter growth, RIL’s profit jumped 35.59 per cent from Rs 13,680 crore posted in previous quarter ending September 2021.
The company’s revenue from operations came in at Rs 1.91 lakh crore in the period under consideration from Rs 1.24 lakh crore a year back.
Reliance’s retail business rode a boom in consumer demand, with the lifting of most Covid-19 restrictions toward the end of 2021, while higher refining margins and improved price realizations bolstered its mainstay energy business.
Reliance recorded a one-off gain of Rs 2,872 crore from the sale of its shale gas assets.
“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,” Ambani said in a statement.
“The recovery in global oil and energy markets supported strong fuel margins and helped our O2C (oil-to-chemicals)business deliver robust earnings.”
RIL’s telecom arm Jio Infocomm post nearly 10 per cent jump in profit at Rs 3,615 crore as against Rs 3,291 crore posted in same quarter last year.
Jio’s subscriber base grew, helped by its budget smartphone Jiophone Next. It added 10.2 million subscribers in Q3FY22.
Segment EBIDTA crossed Rs 10,000 crore mark for the first time.
Meanwhile, Reliance Retail Ventures Ltd’s EBITDA rose to Rs 3,822 crore as demand improved across categories during the festive season. Net profit from retail business rose 23.4 per cent to Rs 2,259 crore.
The growth was supported by retail demand in jewellery, electronics and grocery. Also, lower restrictions on mobility and higher operating days during the quarter were other drivers of the retail segment’s sales.
It opened 837 new stores during the quarter, taking the total count to 14,412 stores. Revenue crossed the Rs 50,000 crore mark for the first time, rising above pre-pandemic levels.
Reliance’s oil and gas segment posted a near 500 per cent YoY spurt in revenues to Rs 2,559 crore, with segment EBITDA of Rs 2,033 crore. This is on the back of production from newer fields in the KG-D6 block stabilising, taking the overall production to 18 million standard cubic metres per day.
But the full impact of its recent tariff hike will be visible in the fourth quarter (January-March).
RIL’s share finished marginally lower at Rs 2,478 on the BSE, while it closed at Rs 2,476.05 on the NSE.
(With inputs from agencies)

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