RIL Q3 Results: Net Profit Jumps 42% On Oil-To-Chemicals, Retail Growth

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Reliance Industries Ltd.’s quarterly profit surged beating estimates, aided by an increase in benchmark gross refining margins and product cracks, and the performance of its retail segment.

The Mukesh Ambani-led conglomerate’s profit rose 41.6% year-on-year to Rs 18,549 crore in the quarter ended December, according to its exchange filing. That compares with the Rs 15,046.7-crore consensus estimate of analysts tracked by Bloomberg.

  • Revenue (minus excise duty) rose 57% over a year earlier to Rs 1,85,047 crore—higher than the estimated Rs 1,75,300 crore.
  • Operating profit rose 37.7% to Rs 29,706 crore.
  • Operating margin narrowed to 16.1% from 18.3%.
  • Benchmark Singapore GRMs rose 402% over the preceding year to a two-year high of $6 a barrel.

Oil-to-chemicals operating income jumped 38.7% over a year earlier to Rs 13,530 crore due to better transportation fuel cracks and higher polyester chain delta.

Brent crude averaged $79.7 a barrel in the third quarter compared with $45.26 in the preceding year. As a result, petrol, diesel, and jet fuel cracks jumped 342%, 249% and 323% year-on-year for fuel refiners.

“The recovery in global oil and energy markets supported strong fuel margins and helped our O2C business deliver robust earnings,” said Mukesh Ambani, chairman and managing director, Reliance Industries, in the statement. “Our oil & gas segment delivered strong growth in EBITDA with volume growth and improved realization.”

India’s overall consumption of petroleum products fell 3.8% on an annual basis to 53.32 million metric tonnes, led by 32% growth in aviation turbine fuel usage, according to data provided by the Petroleum Planning and Analysis Cell. Petrol and diesel consumption rose 2.3% and fell 3.8% over the preceding year, the data showed.

Petrochemical prices rose sequentially owing to power rationing measures in China that led to the shutdown of some industrial units. The PE-Naphtha and PVC-Naphtha spreads grew 13% and 23% quarter-on-quarter, respectively.

Exploration and production revenue surged 494% over a year earlier to Rs 2,559 crore due to ramp-up of gas production from KG D6 and improved price realisation.

Reliance Retail

Retail EBIT rose 34.8% sequentially (24.5% over a year earlier) because of a strong rebound in demand across categories during the festive season.

The growth was seen across consumption baskets driven by highest-ever store sales and sustained growth momentum in digital and new commerce, the company said.

Jio Platforms

Jio Platforms Ltd., the holding company for digital ventures and the telecoms unit, saw profit rise 4.1% quarter-on-quarter. Average revenue per user rose 5.6% to Rs 151.6. In the last few quarters, the company’s gross and active subscriber market share has remained stable. (BloombergQuint)