Reliance Industries Limited, country's largest company by market capitalisation, has announced its standalone and consolidated financial results for third quarter of FY2023. The Mukesh Ambani-led diversified conglomerate delivered strong operating performance for the quarter ended December FY23, with contribution from all segments.
"Our teams across businesses have done an excellent job in delivering strong operating performance through a challenging environment. All segments contributed to the robust growth in consolidated EBITDA on YoY basis," Mukesh Dhirubhai Ambani, Chairman and Managing Director said.
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RIL reports strong operating performance for Q3 | Key Takeaways
1)Bottomline
Consolidated net profit for the third quarter of FY23 stood at Rs 17,806 crore, down 13.30 percent year-on-year (YoY). Profit after tax, excluding the impact of an exceptional item that boosted the bottomline in 3QFY22, marginally improved by 0.6 percentyear-on-year. RIL had booked sale from its divestment of shale gas assets that resulted in an exceptional item of Rs 2,836 crore in the third quarter a year ago.
Net profit attributable to owners of the company, excluding non-controlling interest was Rs 15,792 crore, which was 15 percentlower than a year ago.
2)Topline
The consolidated gross revenue for the quarter at Rs 2.4 lakh crore increased by 14.8 percent compared to corresponding period last financial year.
3) Operating Performance
The oil-telecom-to-retail conglomerate has recorded a 13.5 percentYoYincrease in EBITDA at Rs 38,460 crore for the quarter. EBITDA is earnings before interest, tax, depreciation andamortisation.
4)JioPlatforms
Consolidated profit for the quarter grew by 28.6 percent to Rs 4,881 crore compared to corresponding period last fiscal, with nearly 17 percent on-year fall in finance cost at Rs 1,047 crore in Q3FY23.
JioreportedARPUat Rs 178.2 per subscriber per month, up from Rs 177.2 in previous quarter and gaining significantly from Rs 151.6 in same quarter of last financial year.
6) Reliance Retail
Reliance Retail business recorded highest ever quarterly revenue and EBITDA for the quarter with highest ever footfall at 201 million across formats and geographies for Q3FY23, against 160 million footfall in Q3FY22 and 180 million in Q2FY23.
7) O2C Business
The business recorded revenue at Rs 1.44 lakh crore for the quarter ended December FY23, growing 10 percent over the corresponding period last fiscal led by higher pricerealisationas crude oil prices went up by 11 percent.
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RIL Joint CFO: India demand for fuels, downstream products remained strong even as global demand declined
RIL Joint CFO: Demand from Asia Pacific supported middle distillate cracks in Oil-to-Chemicals business
RIL Joint CFO: Expecting new refining capacity to come up globally which may limit upside in margin
RIL announces Rs 20,000 crore fundraising via NCDs
Reliance Industries stated that its board has approved Rs 20,000 crore fundraising via non-convertible debentures (NCDs) through a private placement basis.
"We wish to inform you that the Board of Directors of the Company, at its meeting held today, i.e. January 20, 2023, has inter alia approved raising of funds through issuance of Non-Convertible Debentures (NCDs) up to Rs 20,000 crore, in one or more tranches / series, on a private placement basis," RIL said in an exchange filing.
RIL Joint CFO: Energy businesses accounted for 70 percent of incremental growth on a quarter-on-quarter basis.
RIL Q3 Earnings: Finance cost up primarily due to interest rate hikes by central banks and higher loan balances, says Reliance.
Jio delivered record revenue & EBITDA, says Mukesh Ambani
"Jio delivered record revenues and EBITDA driven by strong momentum in customer growth and data consumption. This quarter we launched True 5G services. It is now available in 134 cities and towns in India, enhancing customer experience while enabling next generation services. It is heartening that customers recognise the great value and world class connectivity that Jio offers on its 4G and 5G networks."
Jio reported average revenue per user (ARPU) for the December quarter stood at Rs 178.20, rising from Rs 177.2 in the previous quarter. Reliance Jio added 5.3 million subscribers in the October-December quarter.
RIL Q3 Earnings: Mukesh Ambani on retail business
"Retail business had another quarter of strong progress with more Indians choosing to shop at Reliance Retail stores. We are focused on delivering superior products and value to customers while improving profitability."
"Our upstream business delivered robust growth with sustained production from KG D6 block along with higher realization. We are on track to reach 30 MMSCMD of gas production in FY 24 after the commissioning of MJ field. This will significantly enhance India’s energy security in a volatile energy market environment."
Making rapid progress in implementation of new energy giga factories at Jamnagar: Mukesh Ambani
"We are making rapid progress towards implementation of new energy Giga factories at Jamnagar as part of our commitment to revolutionizing the green energy sector. Our strong balance sheet and robust cash flows remains the cornerstone of our commitment in growing existing businesses as well as investing in new opportunities.”
RIL Q3 Earnings LIVE: O2C revenues rise on higher crude prices
-Oil-to-Chemicals revenues increased on account of higher price realisation as crude oil prices went up by 11%.
-Revenue growth was constrained by lower throughput with planned maintenance and inspection activity turnaround during the quarter.
-O2C exports increase led by higher price realisations despite lower downstream product volumes.
-EBITDA growth was supported by strength in middle distillate cracks. But partially offset by weak margins across polymer, polyester chain and light distillates products.
-Special Additional Excise duty in Oil-to-Chemicals business on transportation fuels also impacted earnings by ₹ 1,898 crore.
Reliance Jio Chairman Akash Ambani on 5G update:
Reliance Jio Infocomm Chairman Akash Ambani: Jio will connect over 100 million premises with JioFiber and JioAirFiber offering unparalleled digital experiences.
True5G services rolled out in 134 cities across 22 States and Union Territories of India. Jio remains on track to complete its pan India 5G rollout by December 2023.
Reliance Retail Q3 earnings: Revenue jumps 17%, net profit up 6.2% on highest ever footfalls
Retail arm of Reliance Industries' revenue from operations at Rs 67,634 crore in the quarter ended December 2022.
Consolidated revenue for Reliance Retail stood at Rs 57,717 crore in the same period last year.
Net profit for the quarter rose 6.2 percent YoY to Rs 2,400 crore. Net profit was Rs 2,259 crore in Q3 FY22. This was in-line with analyst expectations. The Street had forecast Reliance Retail to continue its strong growth show with an improvement in footfalls during the festive season and the benefits of operating leverage.
The company said it recorded its highest ever footfalls at 201 million across formats and geographies.
RIL Q3 Earnings LIVE: Strong performance with all businesses delivering YoY growth
Net Profitat Rs 17,806 crore - marginally higherYoY, with higher finance cost and depreciation
Revenue at Rs 240,963 crore, up 14.8%YoY with traction in consumer businesses and higher oil prices
EBITDA at Rs38,460 crore, up 13.5% YoY led by consumer businesses and upstream
Digital Services EBITDA at Rs12,900 crore, up 26%
Retail EBITDA at Rs4,786 crore, up 25%
Oil & Gas EBITDA at Rs3,880 crore, up 91%
O2C EBITDA at Rs 13,926 crore, up 3%
RIL Q3 Earnings: Reliance Chairman Mukesh Ambani on quarterly performance
“Our teams across businesses have done an excellent job in delivering strong operating performance through a challenging environment. All segments contributed to the robust growth in consolidated EBITDA on Y-o-Y basis. In O2C business, middle distillate product fundamentals remain strong with firm demand, constrained supply, and high natural gas prices in Europe.Downstream chemical products witnessed margin pressure with excess supply and relatively weak regional demand.”
“We are on track to reach 30 MMSCMD of gas production in FY 24 after the commissioning of MJ field. This will significantly enhance India’s energy security in a volatile energy market environment. We are making rapid progress towards implementation of new energy Giga factories at Jamnagar as part of our commitment to revolutionizing the green energy sector. Our strong balance sheet and robust cash flows remains the cornerstone of our commitment in growing existing businesses as well as investing in new opportunities.”
RIL Q3 Earnings: Net profit comes in at Rs 17,806 crore
Reliance Industriesconsolidated net profit stood at Rs 17,806 crore for the quarter ended December 31, 2022. The diversified conglomerate had posted a profit of Rs 20,539 crore in the year-ago period.
However,PAT (before considering impact of exceptional item for 3Q FY22) marginally improved by 0.6 percentY-o-Y at Rs 17,806 crore.
RIL’S Q3 PBT and PAT does not include exceptional item of Rs2,836 crore. The exceptional item is on account of sale of US shale gas asset.
Revenue from operations in the quarter under review increased 15 percent to Rs 2.2 lakh crore from Rs 1.9 lakh crore in the same period last fiscal.
RIL Q3 earnings LIVE: Reliance to announce quarterly results shortly
Reliance Industries is expected to report double-digit growth in consolidated revenue and EBITDA for the October-December quarter, according to a Moneycontrol poll. Stay tuned for more updates.
RIL Q3 earnings: Reliance Retail expected quarterly performance
Reliance Retail is expected to continue its strong growth show with an improvement in footfalls during the festive season and the benefits of operating leverage. Thelaunch of its FMCG (fast moving consumer goods) brand Independenceand the acquisition ofMetro Cash and Carrywere the two major announcements on the retail front last quarter.
Investors are keenly awaiting clarity on how the retail business is poised for future growth, with analysts expecting 25-30 percent year-on-year growth in the segment’s EBITDA.
RIL Q3 preview: Energy business
“This segment’s earnings would recover QoQ led by lower taxes aiding higher refining margins, though partly offset by lower petchem spreads,” added UBS. Jefferies has pegged this segment's EBITDA at Rs 12,893 crore.
Elevated middle distillate cracks, higher E&P (exploration & production) profitability on gas price hikes and currency depreciation will also aid earnings recovery, analysts at Kotak Institutional Equities (KIE) noted.
RIL Q3: What brokerages say
While most brokerages expect RIL to report broad-based growth across segments, the retail and Jio verticals’ performances will be watched with particular interest.
“We estimate RIL’s Q3 FY23 consolidated EBITDA to grow 10 percent sequentially, driven by a recovery for the O2C (oil-to-chemical) segment on a low base, strong uptick for upstream and sustained growth across consumer-facing businesses,” analysts at Nomurahad noted.
RIL Q3 LIVE: Stock update
Ahead of its earnings announcement, RIL shares closed 1.15 percent lower at Rs 2,442.70 apiece on the BSE. RIL's scrip hit a 52-week high of Rs 2,855 on April 29, 2022 and 52-week low of Rs 2,181 on March 8, 2022.
Jio Q3 operating margin:
Operating margin increased 50 basis points YoY and 30 basis points QoQ to 26.6 percent. Net profit margin stood at 17.1 percent, up 110 basis points and 10 basis points, respectively.
Jio Q3 results: Revenue rises 19% YoY; EBITDA margin comes in at 52.2%
Jio'srevenue from operations came in at Rs 22,998 crore, rising18.9 percentYoYfrom Rs 19,347 crore in the corresponding quarter last year.
A strong net subscriber addition of 7 million was expected to boost Jio’s EBITDA by 3-4 percent sequentially.
The company’s EBITDA came in at Rs 12,009 crore while EBITDA margin was at 52.2 percent. Brokerages had forecast an EBITDA of Rs 12,635 crore for the telecom major.
RIL Q3 earnings LIVE Updates: Reliance Jio net profit up 28% YoY to Rs 4,638 crore
JioPlatforms,the technology and telecomsubsidiary of Reliance Industries had reported net profitof Rs 3,615crore in the same quarter last year.
Its revenue from operations came in at Rs 22,998 crore, rising18.9 percentYoYfrom Rs 19,347 crore in the corresponding quarter last year.
RIL Q3 Preview | Revenue set to grow 21%, powered by telecom and retail
Reliance Industries is expected to report double-digit growth in consolidated revenue and EBITDA (earnings before interest, taxes, depreciation and amortisation) for the October-December quarter, according to a Moneycontrol poll.
Net profit is expected to grow 4.4 percent to Rs 16,366 crore from a year earlier and sequentially by 19.7 percent, according to the average of estimates of brokerages polled by Moneycontrol. Revenue is expected to rise 21 percent YoY to Rs 2.23 lakh crore.
RIL Q3 results live updates
-Billionaire Mukesh Ambani-led oil-to-chemicals-to-telecom conglomerate Reliance Industries Limited (RIL) is set to declare its earnings for the third quarter ended December 31, 2022 today.
-RIL had reported a consolidated net profit at Rs 13,656 crore for the second quarter ended September 30, 2022 as against Rs 13,680 crore on a year-on-year basis.
