Oil-to-telecom major Reliance Industries on April 30 reported consolidated net profit of Rs 13,227 crore for the quarter ended March 2021 (Q4FY21), up 108.4 percent YoY amid significant growth in Jio and recovery in Retail segments. This profit was attributable to owners of the company, while profit for the period stood at Rs 14,995 crore, thus witnessing a growth of 129.1 percent YoY and 0.7 percent QoQ.
Profit in the March 2020 quarter stood at Rs 6,348 crore hit by lockdown announced to curb COVID-19 pandemic. The company had provided for non-cash inventory holding losses for the quarter.
The sequential growth in profit was 1 percent. Profit in December quarter was at Rs 13,101 crore.
Consolidated revenue from operations stood at Rs 1,54,896 crore, up 11 percent YoY while the sequential increase in topline was at 24.9 percent.
"These are extraordinarily challenging times for India. Our immediate priority is to help our country and community tide over the COVID crisis. We have deployed our best resources in strengthening the nation's fight against the pandemic," said Mukesh Dhirubhai Ambani, Chairman and Managing Director.
He further said, "We have registered robust recovery in O2C and retail segment, and resilient growth in Digital Services business. Sustained high utilization rates across sites and improvement in downstream product deltas as well as transportation fuel margins aided O2C earnings growth."
The oil-to-chemical (O2C) business revenue grew by 20.6 percent sequentially to Rs 1,01,080 crore and at the operating level, the segment's EBITDA (earnings before interest, tax, depreciation and amortisation) came in at Rs 11,407 crore, up 16.9 percent QoQ but margin declined 30 bps QoQ to 11.3 percent.
In February, the Mukesh Ambani-led conglomerate announced reorganisation of its oil-to-chemical (O2C) business into a wholly-owned subsidiary - Reliance O2C Limited.
The O2C business comprises refining & marketing and petrochemicals businesses.
Post restructuring, the promoter Group will hold 49.14 percent equity stake and the rest will be held by public shareholders, including DIIs and FIIs.
At the operating level, Reliance said consolidated EBITDA for the quarter was Rs 26,602 crore, higher by 1.9 percent QoQ and cash profit was Rs 22,746 crore, up 6.5 percent QoQ.
For the financial year 2020-21 (FY21), RIL said it has posted a record annual consolidated profit of Rs 53,739 crore with growth of 34.8 percent compared to the previous year. The revenue from operations during the year stood at Rs 4,86,326 crore, compared to Rs 6,12,437 crore in the previous year.
The finance cost of the company in Q4FY21 was at Rs 4,044 crore, down by 33.3 percent compared to Rs 6,064 crore in the year-ago quarter. The sequential fall in finance cost was 6.5 percent.
The company recorded annual EBITDA for Jio Platforms at Rs 32,359 crore and Reliance Retail Ventures at Rs 9,789 crore.
Jio Platforms recorded a 47.5 percent year-on-year (half a percent QoQ) growth in consolidated profit at Rs 3,508 crore. Its revenue at Rs 18,278 crore increased 18.9 percent compared to the year-ago quarter, but fell 6.1 percent sequentially.
At the operating level, Jio registered 36.3 percent YoY increase (up 1.1 percent QoQ) in EBITDA (earnings before interest, tax, depreciation and amortisation) to Rs 8,573 crore, with margin expansion of 600 bps YoY and 330 bps QoQ at 46.9 percent in Q4FY21.
"Jio has a highly engaged 426 million customer base and remains committed to enhancing digital experiences not only for our existing customers but, for all individuals, households, and enterprises across the country," said Mukesh D Ambani.
"With its path defining partnerships over the last couple of years, Jio will continue to strive towards making India a premier digital society. COVID has brought forth new challenges for the country. Jio's on-the-ground teams are working tirelessly to address all issues for ensuring seamless customer service," he added.
Average revenue per user (ARPU) during the quarter dropped to Rs 138.2 per subscriber per month as against Rs 151.0 per subscriber per month in the trailing quarter owing to transition from Interconnect Usage Charges (IUC) to Bill & Keep regime effective January 1, 2021, and lower number of days during the quarter, said the company.
Total subscribers at the end of March 2021 at 426.2 million was much ahead of CNBC-TV18 poll estimates, which had pegged it at 418 million.
Total subscribers at the end of December quarter was 410.8 million.
Despite COVID related challenges, Jio Platforms closed its first full year of operations with revenue from operations and EBITDA of Rs 73,503 crore and Rs 32,359 crore, respectively. This has been driven by strong 45 percent YoY EBITDA growth at Reliance Jio Infocomm on the back of continued subscriber traction and higher ARPU, said the company.
RIL said subsidiary Reliance Retail delivered a resilient performance against the backdrop of an unprecedented and challenging operating environment, arising from the COVID pandemic situation that emerged at the start of the year, with gross revenue coming in at Rs 1,57,629 crore in FY21 (down 3.3 percent over FY20).
But, "overall revenues (after adjusting for the impact of the transfer out of the Petro retailing business) grew at 2 percent YoY despite store closures (80 percent stores operational), lower footfalls (65 percent of last year) and operational disruptions through the year," the company said.
At an EBITDA of Rs 9,789 crore for FY21, "the business posted its all-time high profit, driven by the gradual rebound of revenue streams, judicious cost management initiatives and boosted by higher investment income," said Reliance, adding net profit for the year was Rs 5,481 crore, higher by 0.6 percent.
The quarter ended March 2021 was a landmark quarter for the business with quarterly revenue and EBITDA at an all-time high despite lesser than normative operating conditions, Reliance said.
Net profit for the quarter was Rs 2,247 crore, up 45 percent YoY and 23 percent QoQ. Gross revenue stood at Rs 47,064 crore, up 24 percent QoQ and 23 percent YoY, while EBITDA at Rs 3,617 crore, was up 17 percent QoQ and 41 percent YoY.
Reliance Industries currently holds 85.1 percent stake in Reliance Retail Ventures and 67.3 percent in Jio Platforms after selling the balance stake in last one year to global investors.
Reliance Industries has also announced dividend of Rs 7 per share.
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Reliance share price has gained 2 percent in the current year 2021, so far, and the stock has rallied 39.4 percent in the last one year.Disclaimer: MoneyControl is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.