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RIL corrects after Q4 earnings

·4-min read

On a consolidated basis, the conglomerate reported 108.36% surge in net profit to Rs 13,227 crore on 9.59% increase in net sales to Rs 149,575 crore in Q4 March 2021 (Q4FY21) over Q4 March 2020 (Q4FY20).

The increase in revenue was primarily due to higher volumes in transportation fuels and better price realizations across O2C segment. The robust performance by retail segment across all formats also added to growth in revenue.

EBITDA rose 1.9% quarter-on-quarter (QoQ) and it advanced 2.77% year-on-year (YoY) to Rs 26,602 crore in Q4FY21 over Q4FY20. The sequantial improvement was primarily due to improvement in O2C and retail businesses.

RIL's net profit rose 24.84% to Rs 49,128 crore on 21.86% decline in net sales to Rs 466,924 crore in the year ended March 2021 (FY21) over the year ended March 2020 (FY20).

The decrease in revenue was primarily due to lower volumes and realization across key products in O2C segment. The retail segment also reported lower revenue on account of the effect of the pandemic. This was partially offset by higher revenue from Digital Services segment on account of continued subscriber traction and higher ARPU.

The company's board also declared a final dividend of Rs 7 per share for the financial year ended March 2021.

Commenting on the results, Mukesh D. Ambani, chairman and managing director, RIL 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. Our consumer businesses have proved to be a digital and physical lifeline for the nation in these challenging times. Jio's high-speed connectivity services enabled millions of Indians work from home, study from home and even receive healthcare from home. Reliance Retail ensured safe supplies of essentials goods and services to customer homes.”

RIL's outstanding debt as on 31st March 2021 was Rs 251,811 crore. Cash and cash equivalents as on 31st March 2021 were at Rs 254,019 crore.

The telecom arm of RIL, Reliance Jio, witnessed a 47.5% year-on-year (YoY) growth in the net profit at Rs 3,508 crore in the fourth quarter. The consolidated revenue from operations grew nearly 19% to Rs 18,278 crore against Rs 15,373 crore YoY.

Jio posted a total average revenue per customer (ARPU) during the quarter of Rs 138.20 per subscriber per month while customer base as on 31 March 2021 stood at 426.2 million.

EBITDA rose 36.3% to Rs 8,573 crore YoY in Q4 FY21. EBITDA margin grew 600 bps to 46.9% in Q4 FY21 from 40.9% in Q4 FY20.

Based on TRAI Financial Data for the quarter ended December 2020, Reliance Jio Infocomm (RJIL) had Adjusted Gross Revenue (AGR) market share of about 45% with market leadership in 19 out of 22 circles.

For Reliance Retail, net profit for the quarter was Rs 2,247 crore higher by 45% Y-o-Y. Gross Revenue at Rs 47,064 crore, grew 24% Q-o-Q and 23% Y-o-Y and EBITDA at Rs 3,617 crore, was up 17% Q-o-Q and 41% Y-o-Y.

EBITDA growth was enabled by doubling of consumer electronics profits, continued benefits from cost management initiatives and a boost from investment income of Rs 534 crore.

In the oil to chemicals (O2C) segment, EBITDA for Q4FY21 improved by 16.9% Q-o-Q to Rs 11,407 crore primarily due to improved cracks for transportation fuels and higher deltas for polymers and integrated polyester chain.

O2C segment revenues for Q4FY21 increased by 20.6% Q-o-Q to Rs 101,080 crore primarily on account of higher realization across product portfolios and higher volumes. Higher realization was led by strong average Brent crude price mainly due toweather-related supply disruptionand continued supply cuts by OPEC plus.

Total throughput in Q4FY21 was 18.7 MMT, an increase of 2.75% over Q3FY21 and a decline of 6.97% over Q4FY20.

In the oil and gas (exploration & production) business, revenues for Q4FY21 increased by 96.8% Q-o-Q to Rs 848 crore. EBITDA was up sharply at Rs 480 crore. This was primarily due to incremental production from R-Cluster and higher gas price realization.

Segment EBITDA was reported at Rs 480 crore in Q4FY21 compared with a loss of Rs 46 crore in the year ago quarter.

In the media business, revenue from operations fell 0.49% quarter-on-quarter and fell 3.35% YoY to Rs 1,415 crore in Q4FY21. Segment revenue mitigated the impact of COVID-19 with continued growth in ad revenuesin high single digits in Q4FY21.

Segment revenue ex-film production grew 2% Y-o-Y, and dipped only 3% Q-o-Q despite festive season boost in Q3FY21; underscoring the portfolio strength.

Subscription revenue remained resilient, as domestic subscription revenue growth due to improved tie-ups in TV and Digital offset stress in international.

RIL is the largest private sector corporation in India. Its activities span hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, retail and digital services.