RIL Q3 Results: Profit jumps 38% YoY to Rs 20,539 cr; revenue up 54%

NEW DELHI: Oil-to-telecom major Reliance Industries (RIL) on Friday reported a 37.90 per cent year-on-year (YoY) rise in net profit at Rs 20,539 crore for the December 2021 quarter, aided by one-time exceptional gains.

The Mukesh Ambani-led company had reported a profit of Rs 14,894 crore in the corresponding quarter last year.

Reliance's retail segment clocked a 23 per cent jump in YoY profits while the telecom segment logged an 8.9 per cent rise in third quarter profits, the company said in a BSE filing.

The consolidated revenue from operations grew 54.25 per cent YoY to Rs 1,91,271 crore from Rs 1,23,997 crore in the same quarter last year. Net profit margin came in at 9.8 per cent compared with 8.1 per cent in September quarter and 10.8 per cent in the year-ago quarter.


Chairman and Managing Director Mukesh Ambani said the retail business activity has normalised 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.

Both consumer businesses, retail and digital services businesses recorded highest ever revenues and Ebitda, the company said.

"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," RIL said.

The company said consolidated profit for Reliance Jio Platforms rose 8.9 per cent to Rs 3,795 crore. Gross revenue for the segment came in at Rs 24,176 crore, up 13.8 per cent. This, it said, was adjusted for interconnect usage charges (IUC)).

Ebitda for the segment rose 18 per cent to Rs 10,008 crore while cash profit rose 14.7 per cent to Rs 8,747 crore. Total Jio subscriber addition for the quarter was was 1.02 crore. Jio's total subscribers stood at 42.1 crore, the company said.

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.

"5G coverage planning has been completed for 1,000 top cities across the country. Jio has been doing trials on advanced use cases across Healthcare and Industrial Automation on its 5G network," RIL said.

In case of Reliance Retail, net profit rose 23.4 per cent YoY to Rs 2,259 crore. Gross revenue for this segment climbed 52.5 per cent to Rs 57,714 crore.

Cash Profit for the segment was up 32 per cent at Rs 3,277 crore. A total of total 14,412 physical stores operational while 837 new stores opened during the quarter, the company said.

Area of operation stood at 40.0 million square feet at the end of December 2021 compared with 31.2 million square feet in the corresponding quarter of the previous year.

The oil to chemicals segment logged 56.8 per cent YoY growth in revenue at Rs 1,31,427 crore compared with Rs 83,838 rore in the year-ago quarter. Ebitda rose 38.7 per cent YoY to Rs 13,530 crore on account of better transportation fuel cracks and higher polyester chain deltabut margin contracted to 10.3 per cent from 11.6 per cent YoY.

This was primarily due to base effect driven by higher feedstock and product prices.

During the quarter, Reliance Eagleford Upstream Holding, a wholly owned stepdown subsidiary of Reliance Industries signed agreements with Ensign Operating to divest its interest in certain upstream assets in the Eagleford shale play of Texas, USA.

With that transaction, RIL divested all its shale gas assets and has exited from the shale gas business in North America. The transaction resulted in an exceptional gain on sale of assets amounting Rs 2,872 crore. It was partially offset by provision for liabilities pertaining to GAPCO amounting to Rs 36 crore.

Total exceptional gains for the quarter stood at Rs 2,836 crore compared with an exceptional loss of Rs 121 crore in the year-ago quarter.

During the quarter ended December 31, 2021, there is no significant impact on the operations of the group.

"Commercial papers due for redemption during the period ended December 31, were duly repaid. As on December 31, 2021, the group has total outstanding commercial papers amounting to Rs 49,272 crore (net of discount)," RIL said its results notes.