Reliance Q4 net profit vaults 129% to Rs14,995 crore

Consolidated net profit attributable to shareholders stood at Rs13,227 crore against Rs6,348 crore a year ago.

The spike in RIL’s quarterly profit, which was boosted by strong performance in its oil-to-chemical (O2C) and retail divisions, also reflects last year’s low base following the pandemic-related lockdown that had affected both its domestic business and exports.

Consolidated revenue for the quarter stood at Rs172,095 crore, up 13.6 per cent from Rs151,461 crore of the year-ago quarter.

For the full financial year ended 31 March 2021, RIL reported a 34.8 er cent jump in consolidated net profit at Rs53,739 crore while consolidated revenues stood at Rs539,238 crore, which was18.3 per cent lower compared to Rs659,997 crore in the previous fiscal.

Reliance Industries also declated a total dividend of Rs76.4 per share for the fiscal, which is an increase of 21.1 per cent year-on-year.

The decrease in revenue was primarily because of lower volumes and realisation across key products in the O2C segment. Its retail business also reported lower revenue because of the pandemic.

The year saw segment revenues for the O2C business declining by 29 per cent to Rs320,008 crore from Rs451,335 crore. RIL said its exports also decreased by 28.2 per cent to Rs145,143 crore from Rs202,205 crore in 2019-20.

Buoyed by firm crude oil prices during the quarter, RIL’s revenue from O2C business, at Rs101,080 crore, showed a robust growth of 21 per cent growth over the preceding quarter while earnings before interest, taxes, depreciation and amortisation (Ebitda) margins were steady at 11.3 per cent.

RIL said the growth was primarily on account of higher realisation across product portfolios and higher volumes. A spike in average Brent crude price caused by weather-related supply disruptions and continued supply cuts by Opec plus helped the numbers.

During the quarter, Jio Platforms Ltd (JPL) put up a mixed show with net profits rising by a marginal 0.5 per cent sequentially to Rs3,508 crore from Rs3,489 crore.

Average revenue per user (ARPU) fell to Rs138.2 from Rs151 in the preceding three months, while JPL saw its revenues falling 6.1 per cent to Rs18,278 crore from Rs19,475 crore in the third quarter.

The retail business also benefited from the pandemic due mainly to an increase in online sales. Revenue from operations rose 25 per cent sequentially to Rs41,296 crore from Rs33,018 crore, while EBITDA showed a rise of 17 per cent to Rs3,617 crore.

Net profit of Reliance Retail rose 45 per cent to Rs2,247 crore over the year-ago period.

“We have registered robust recovery in O2C and retail segment, and resilient growth in Digital Services business. Sustained high utilisation 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. And while Covid-19 has disrupted livelihoods, we have added nearly 75,000 jobs to the economy, while ensuring the health and safety of our employees and their families,” Mukesh D. Ambani, chairman and managing director, Reliance Industries Limited, said. 

“These are extraordinarily challenging times for India. Our immediate priority is to help our country and community tide over the Covid crisis. We have deployed our best resources in strengthening the nation’s fight against the pandemic. Our facilities in Jamnagar are producing lifesaving medical grade oxygen, which is the crucial need of the hour in many states. We have also taken urgent steps to bolster the nation’s capacity to swiftly transport medical oxygen. These efforts complement our other initiatives such as distributing free meals to the needy, supplying PPEs to frontline workers and setting up world class Covid-care facilities,” Ambani added.

RIL officials said the company continues to have a strong balancesheet and it remains a net cash company. Its cash and cash equivalents stood at Rs 254,019 crore as on March 31, 2021. This was higher than the outstanding debt of Rs 251,811 crore. 

RIL emerged a net debt-free company last year after raising more than Rs1,50,000 crore in the Jio Platforms and a rights issue.

RIL also divested some of its shale gas assets, while the year also saw a Rs 15,691 crore impairment in its assets.