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RIL's Q3FY21 earnings show strong sequential rebound across sectors; top 5 highlights of December quarter scorecard

The company posted a 40.5 percent sequential growth in consolidated profit at Rs 14,894 crore for the quarter ended December 31, 2020.

January 22, 2021 / 09:47 PM IST
 
 
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Reliance Industries (RIL) on January 22 posted a better-than-expected December quarter numbers, supported by a strong sequential rebound across businesses.

The company posted a 40.5 percent sequential growth in consolidated profit at Rs 14,894 crore for the quarter ended December 31, 2020.

EPS before exceptional items stood at Rs 20.5 per share, marking an increase of 38.2 percent QoQ.

The company reported a record quarterly EBITDA for digital services at Rs 8,942 crore.

Here are 5 key highlights of RIL's December quarter scorecard:

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Oil to chemicals (O2C) segment shines: The segment's revenue increased 10 percent QoQ to Rs 83,838 crore on account of higher volumes, mainly in transportation fuels, PTA and polyester, supported by improved product realisation across polymers, intermediates and polyester.

Higher product sales and shifting of product placement from exports to the domestic market boosted EBITDA by 10.3 percent QoQ to Rs 9,756 crore for the quarter. EBITDA margin remained flat at 11.6 percent.

Strong rebound in oil and gas segment: The oil & gas segment, which includes exploration, development and production of crude oil and natural gas, witnessed a 21.4 percent QoQ rise in revenue at Rs 431 crore due to higher commodity price realisation and incremental production from R-Cluster.

EBITDA of this segment, which was in the negative in the September quarter, turned positive and stood at Rs 4 crore in the December quarter. EBITDA margin stood at 0.9 percent.

Retail: COVID-related curbs on store operations eased during the quarter, enabling 96 percent of stores to be opened, although only half of them were fully operational.

The company underscored that stores in smaller towns are recovering faster.

The segment's revenue from operations declined 9.7 percent QoQ to Rs 33,018 crore.

Revenue was impacted by the challenging operating conditions due to COVID-19. Besides, the transfer out of the fuel retailing business to the RIL-BP JV, and the decision to convert Reliance Market stores to fulfillment centres to enable city expansion of New Commerce also impacted the revenue of the segment.

EBITDA for the segment zoomed 53.9 percent QoQ to Rs 3,087 crore while EBITDA margin stood at 9.3 percent against 5.5 percent QoQ.

Reliance Retail added over 50,000 new jobs since the beginning of the pandemic and contributes positively to the social and financial well-being of all employees and their families.

Jio Platforms remains on an upward trajectory: Revenue from operations rose 5.3 percent QoQ to Rs 19,475 crore while EBITDA rose 6.4 percent QoQ to Rs 8,483 crore due to growing revenue and operating leverage.

The segment's EBITDA margin for the quarter stood at 43.6 percent which was at 43.1 percent in the September quarter.

Consolidated net profit of the segment grew 15.5 percent QoQ to Rs 3,489 crore.

Jio witnessed a net addition of 52 lakh customers in the December quarter. The total customer base as of December 31, 2020, stood at 41.08 crore.

The average revenue per user (ARPU) during the quarter came at Rs 151 per subscriber per month as against Rs 145 per subscriber per month in the September quarter.

Total data traffic during the quarter grew 4 percent QoQ to 1,586 crore GB whereas total voice traffic during the quarter grew 4.6 percent QoQ to 97,496 crore minutes.

During the quarter, Google invested, post requisite regulatory approvals, an amount of Rs 33,737 crore into Jio Platforms for 7.73 percent stake which took the total investment to Rs 1,52,056 crore by the investors for a stake of 32.88 percent in Jio.

Media segment recovers fully: The revenue of the segment rose 34 percent QoQ to Rs 1,422 crore, recovering fully from the pandemic impact.

Recovery in advertising was sharp and broad-based, resulting in group revenue reviving to pre-pandemic levels.

The segment's EBITDA grew by a whopping 96 percent QoQ and 21 percent YoY to Rs 324 crore while EBITDA margins rose to nearly 23 percent as all three verticals - entertainment, TV and digital news.

Subscription revenue was up 6 percent QoQ and 2 percent YoY. Domestic subscription revenue growth remained strong due to improved tie-ups in TV and digital, offsetting stress in international.

Commenting on the results, Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries Limited said: "We have delivered strong operational results during the quarter with a robust revival in O2C and retail segments, and steady growth in our digital services business. I am proud that Reliance has employed 50,000 more people since March 2020."

Disclaimer: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd which publishes Moneycontrol.
Moneycontrol News
first published: Jan 22, 2021 09:47 pm

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