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    Reliance Industries Q3 Results: Cons PAT rises 9% YoY to Rs 17,265 crore, tops estimates

    Synopsis

    ​​Reliance Q3 Results: The profit figure was higher than an ETNow poll of Rs 16,944 crore. Consolidated revenue from operations rose 3.6% YoY to Rs 2.28 lakh crore, a tad lower than the estimated Rs 2.36 lakh crore. EBITDA grew nearly 17% YoY to Rs 44,678 crore, led by growth across all business segments.

    Reliance Industries Q3 Results: Profit beats estimates, rises 9% YoY to Rs 17,265 cr; revenue up 3.6%
    MUMBAI - Reliance Industries (RIL) on Friday reported a 9.3% year-on-year (YoY) growth in consolidated net profit for the quarter ended December to Rs 17,265 crore (attributable to owners of the company).

    The figure was higher than an ETNow poll of Rs 16,944 crore.

    Consolidated revenue from operations grew 3.6% YoY to Rs 2.28 lakh crore, tad lower than the estimated Rs 2.36 lakh crore.

    Sequentially, the bottomline declined 0.7% and the topline fell nearly 3%.


    Consolidated earnings before interest, taxes, depreciation, and amortization or Operating margin expanded 210 basis points YoY and 50 bps sequentially to 18%.

    Consolidated finance cost increased by over 11% YoY to Rs 5,789 crore.

    At the consolidated level, capital expenditure for the quarter was Rs 30,102 crore, compared to Rs 38,815 crore a quarter earlier.

    Cash and cash equivalents as of December end was Rs 1.92 lakh crore, compared to Rs 1.78 lakh crore a quarter ago.

    The outstanding debt at the consolidated level was Rs 3.12 lakh crore as of December end, compared with Rs 2.96 lakh crore a quarter ago, and Rs 3.03 lakh crore a year ago.

    The net debt-to-EBITDA was 0.67 times as of December end, compared to 0.66 times a quarter ago.

    Digital Business

    Jio Platforms reported an over 11% YoY growth in both revenue and EBITDA to Rs 32,510 crore and Rs 13,955 crore, respectively. Net profit increased by nearly 6% to Rs 5,445 crore.

    Operating margin improved to 50.4% from 50.3% a year ago and a quarter ago.

    The average revenue per user or ARPU remained flat sequentially at Rs 181.7 but improved from Rs 178.2 a year ago.

    “ARPU increased 2% YoY to Rs 181.7 with better subscriber mix, partially offset by unlimited data allowance on 5G network,” RIL said.

    Operating revenue growth continued to be driven by robust subscriber growth across mobility and homes, and the benefit of mix improvement in the average revenue per user or ARPU.

    The customer base increased to 470.9 million as of December end from 459.7 million as of September end.

    The double-digit growth in EBITDA was led by higher revenue and an increase in margins.

    “I am happy to share that Jio has completed in India the fastest rollout of True 5G services anywhere in the world,” RIL Chairman and Managing Director Mukesh D Ambani said.

    Reliance Retail

    Reliance Retail reported a 23% YoY growth in consolidated revenue to Rs 83,063 crore, which was the highest-ever revenue in a quarter. Growth was led by grocery, fashion & lifestyle, and consumer electronics businesses.

    EBITDA increased 31% YoY to a record Rs 6,258 crore, margin improved 40 bps to 8.1%, driven by operating leverage and continued focus on cost management.

    The business expanded its store network with 252 new store openings, taking the total store count at the end of the quarter to 18,774 stores.

    The quarter recorded footfalls of over 282 million across formats, a growth of 40.3% YoY. Digital commerce and new commerce businesses continued to grow and contributed to 19% of revenue.

    Stores witnessed strong growth in non-food categories led by general merchandise and home and personal care.

    “Reliance Retail remains focused on enriching customer shopping experiences by adding new brands and offerings to its portfolio,” Ambani said.

    Oil-to-Chemicals (O2C)

    This was the only business that failed to perform and was a drag on the overall earnings of RIL in the quarter. The O2C business constituted 62% of the consolidated revenue of the conglomerate in the quarter.

    Revenue from this segment declined 2.4% YoY to Rs 1.41 lakh crore, primarily on account of lower price realisation led by 5.3% YoY decline in average brent crude oil prices.

    Exports, which has a fairly large share in the overall revenue from the segment, declined nearly 5% YoY to Rs 74,617 crore in the quarter.

    Operating profit rose a marginal 1% YoY to Rs 14,064 crore, as higher gasoline cracks and advantageous feedstock sourcing was offset by lower downstream chemical margins and planned maintenance and inspection shutdown.

    The operating profit would have been higher both YoY and sequentially if all major units
    were available during the quarter.

    The total throughput was 18.7 million tonne in the quarter, compared to 20 million tonne a quarter ago, and 18.8 million tonne a year ago.

    Crude oil benchmarks declined due to concerns of global economic slowdown and seasonal lower demand. Crude supply though, remained adequate despite headline production cuts by OPEC+ countries.

    Further, polymer prices declined slightly with subdued global demand and volatile feedstock energy price environment.

    Ahead of its earnings, shares of RIL ended flat on the National Stock Exchange at Rs 2,734.90.

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