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RIL Q3 PAT up 12.5% YoY to Rs 13,101 cr

·5-min read

The net revenue increased 5.95% sequentially primarily due to higher price realizations and higher volumes in O2C segment, higher ARPU and FTTH expansion in digital services business. EBITDA increased by 12% to Rs 26,094 crore in Q3 FY21 as against Rs 23,299 crore in the trailing quarter, led by EBITDA margin improvement across consumer businesses.

Profit before tax (PBT) rose 0.13% year-on-year (YoY) to Rs 14,982 crore in Q4 FY21. Current tax slumped 85.22% to Rs 295 crore in Q3 FY21 over Q3 FY20, aiding the net profit during the quarter.

“The outbreak of corona virus (COVID-19) pandemic globally and in India is causing significant disturbance and slowdown of economic activity. The Group's operations and revenue during the period were impacted due to COVID-19,” the company said.

“At a time when the Indian economy is poised for a confident recovery, we at Reliance are humbled that we have been able to contribute to it with our company's impressive performance in the third quarter of FY21," chairman and managing director Mukesh Ambani said. "We have delivered strong operational results during the quarter with a robust revival in O2C and retail segments, and a steady growth in our digital services business. I am proud that Reliance has employed 50,000 more people since March 2020," he added.

Outstanding debt as on 31 December 2020 was Rs 257,413 crore ($35.2 billion). Cash and cash equivalents as on 31 December 2020 were at Rs 220,524 crore ($30.2 billion). Balance capital commitment receivables (on account of rights issue) are in excess of quarter-end net debt levels.

Reliance Jio

Jio Platforms (JPL) reported net profit of Rs 3,489 crore in Q3 FY21, a rise of 15.5% over Rs 3,020 crore in Q2 September 2020 (Q2 FY21). Revenue from operations rose 5.3% quarter-on-quarter (QoQ) to Rs 19,475 crore in Q3 FY21. EBITDA rose 6.4% sequentially to Rs 8,483 crore during the quarter. EBITDA margin increased 46 bps to 43.6% in Q3 FY21 as against 43.1% in Q2 FY21 owing to growing revenue and operating leverage.

Total customer base as on 31 December 2020 stood at 410.8 million, net addition of 5.2 million customers over Q2 FY21. Average revenue per user (ARPU) during the quarter of Rs 151 per subscriber per month as against Rs 145 per subscriber per month in the trailing quarter.

Total data traffic during the quarter of 1,586 crore GB (28.4% YoY growth). Total voice traffic during the quarter of 97,496 crore minutes (18% YoY growth). During Q3 FY21, average data consumption per user per month was strong at 12.9 GB and average voice consumption was at 796 minutes per user per month.

FTTH (fiber-to-the-home) services witnessed increased uptake during the quarter on the back of unique offering and widespread network across the country.

Reliance Retail

Value of sales and services for Q3 FY21 decreased by 8% QoQ to Rs 37,845 crore while EBITDA for Q3 FY21 increased by 54% QoQ to a record Rs 3,087 crore, with underlying operating margin (excluding the impact of the investment income) at 7%, coming in ahead of last quarter and same time last year. This was led by near doubling of fashion and lifestyle earnings, continued benefits from cost management initiatives and a boost from higher investment income of Rs 775 crore.

Overall footfalls remained at similar levels to last quarter but still lower than pre-COVID levels. Overall revenue was further affected by the transfer out of the fuel retailing business to the RIL-BP JV and the decision to convert Reliance Market stores to fulfilment centers to enable city expansion of new commerce.

Oil to Chemicals (O2C)

Segment Revenues for Q3 FY21 increased by 10% QoQ to Rs 83,838 crore primarily on account of higher volumes mainly in transportation fuels, PTA and polyester supported by improved product realization across polymers, intermediates and polyester.

Segment EBITDA for Q3 FY21 improved by 10.3% QoQ to Rs 9,756 crore primarily on account of higher product sales and shifting of product placement from exports to domestic market. On O2C basis, total throughput has increased from 16.8 MMT to 18.2 MMT on Q-o-Q basis due to improved product demand in Q3 and scheduled shutdown taken in Q2.

Utilization rates across RIL O2C facilities remained at high levels in Q3 FY21. Refining throughput was 16.7 MMT an increase of 9.2% over 2Q FY21. Cracker operating rate was 96% impacted by scheduled shutdown of ROGC at Jamnagar. LPG production was maximized based on favorable economics over marginal Alkylate volumes.

Oil and Gas (Exploration & Production) Business

Segment revenues for Q3 FY21 increased by 21.4% QoQ to Rs 431 crore primarily due to higher commodity price realization and incremental production from R-Cluster.

Production and gas supplies from R Cluster field, India's first ultra-deepwater gas field in block KGD6 off the east coast of India, have commenced on 18th December 2020. Production for the period 18th December 2020 to 31st December 2020 is 1.6 BCF (RIL's share). It is expected to reach plateau production of about 12.9 MMSCMD in H2 CY21.

Media Business

The segment revenues recovered fully from the pandemic impact in Q3 FY21, rising sharply by 34% QoQ to Rs 1,422 crore. Festive season buoyancy and sustained elevation in media consumption largely eliminated the COVID-linked drag on ad-spending. Revenue of the primary business of broadcast and digital media (i.e ex-film production) grew 35% QoQ and 1% YoY, as a result of sustained viewership and faster than expected recovery in Ad revenues. EBITDA for Q3 FY21 grew 96% QoQ and 21% YoY to Rs 324 crore. EBITDA margins rose to about 23% as all three verticals(Entertainment, TV and Digital News) improved their profitability levels.

The result was announced after trading hours on Friday (22 January 2021). On that day, the RIL stock declined 2.30% to settle at Rs 2049.65 on the BSE.