Reliance Industries Q3FY22 Results: Profit rises 38% YoY to Rs 20,539 crore

Reliance Industries has reported a 37.90 per cent YoY rise in the consolidated profit at Rs 20,539 crore for the quarter ended December 31, 2021 (Q3FY22). It had posted a profit of Rs 14,894 crore in the corresponding quarter of the previous financial year (Q3FY22).

Sequentially, the profit grew 32.68 per cent QoQ as it posted a profit of Rs 15,479 crore in the previous quarter ended September 30, 2021 (Q2FY22).

The company's revenue from operations grew 9.86 per cent QoQ and 54.23 per cent YoY respectively to Rs 1,91,271 crore. It had posted a revenue of Rs 1,74,104 crore in the September 2021 quarter and Rs 1,23,997 crore in last year.

EBITDA grew 14.2% QoQ to Rs 29,706 crore in the reported quarter compared to Rs 26,020 crore posted in the previous quarter. EBITDA grew 37.8 per cent YoY as the company's EBITDA stood at Rs 21,556 last year.

Net profit margin came in at 9.8 per cent compared with 8.1 per cent in the September quarter and 10.8 per cent in the year-ago quarter.

The company has reported an additional profit of Rs 2,836 crore from the sale of Shale Gas assets in North America. It has completely exited from the shale gas business in North America.

Reliance Industries in a statement said, "The outbreak of coronavirus (COVID-19) pandemic globally and in India is causing significant disturbance and slowdown of economic activity. The Company's operations and revenue were impacted due to COVID-19. However, it has no further significant impact with respect to COVID-19 pandemic during the quarter and nine months ended December 31, 2021."

Commercial papers due for redemption during the period ended December 31, 2021, were duly repaid. The Commercial Papers of the Company outstanding as of December 31, 2021, are Rs 10,441 crore (net of discount).

Segmental Performance

Reliance's Oil & Gas segments consolidated revenue grew 55.65 per cent QoQ to Rs 2,559 crore in Q3FY22 compared to Rs 1,644 crore posted in Q3FY22. EBITDA grew 89.82 per cent QoQ to Rs 2,033 crore compared to Rs 1,071 crore posted in the previous quarter.

The company's retail segments consolidated revenue grew 26.99 per cent QoQ to Rs 57,717 crore in Q3FY22 compared to Rs 45450 crore posted in Q2FY22. Its EBITDA grew 31.2 per cent QoQ to Rs 3,835 crore compared to Rs 2,923 crore.

Digital Services consolidated revenue grew 3.43 per cent QoQ to Rs 25,200 in Q3FY22 compared to Rs 24,362 crore posted in Q2FY22. EBITDA grew 6.99 per cent QoQ to Rs 10,230 crore compared to Rs 9,561 crore.

Jio Platforms gross revenue for the quarter was Rs 24,176 crore, higher by 13.8 per cent (adjusted for Interconnect Usage Charges (IUC)). EBITDA for the quarter was Rs 10,008 crore, an increase of 18 per cent. Net Profit for the quarter was Rs 3,795 crore, a growth of 8.9 per cent. Cash Profit for the quarter was Rs 8,747 crore, a growth of 14.7 per cent.

Total customer base as of December 31, 2021, of 421.0 million, a net addition of 10.2 million customers. ARPU during the quarter of Rs 151.6 per subscriber per month. Total data traffic was 23.4 billion GB during the quarter; 47.8 per cent growth.

Commenting on the results, Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries Limited said, "I am happy to announce that Reliance has posted best-ever quarterly performance in 3Q FY22 with a strong contribution from all our businesses. Both our consumer businesses, Retail and Digital services have recorded the highest ever revenues and EBITDA. During this quarter, we continued to focus on strategic investments and partnerships across our businesses to drive future growth."

He added, "Retail business activity has normalized with strong growth in key consumption baskets on the back of festive season and as lockdowns eased across the country. Our digital services business has delivered broad-based, sustainable, and profitable growth through improved customer engagement and subscriber mix. The recovery in global oil and energy markets supported strong fuel margins and helped our O2C business deliver robust earnings. Our Oil & Gas segment delivered strong growth in EBITDA with volume growth and improved realization."

He further said, "We are making steady progress towards achieving our vision of Net Carbon Zero by 2035. Our recent partnerships and investments in technology leaders in the solar and green energy space are illustrative of our commitment to partner India and the World in the transition to clean and green energy. We continue to pursue growth initiatives and collaborate with global leaders who share our vision of a sustainable future for our planet."