Reliance Industries' Profit More Than Doubles To Rs 13,227 Crore In Q4

Mukesh Ambani-led Reliance Industries Ltd, or RIL, reported a consolidated net profit of Rs 13,227 crore for the quarter ended March 2021 (Q4), more than double the Rs 6,348 crore reported in the year-ago quarter.

While the jump should be seen in the light of last year’s low base, when profit was lower on account of an exceptional loss of Rs 4,267 crore, the performance for Q4FY21 is largely in line with analysts’ expectations.

Revenue and Ebitda, however, beat estimates (Ebitda is earnings before interest, tax, depreciation, and amortisation).

The top line, or revenue from operations, in the period under review grew 9.6 per cent year-on-year (YoY) to Rs 1.5 trillion, led by strong performance of its telecom and retail business and healthy growth in the O2C (oil-to-chemicals) segment.

For the full year ended March 2021, RIL’s consolidated revenue from operations was Rs 4.67 trillion down 21.9 per cent as compared to Rs 5.98 trillion in the previous year.

Net profit at Rs 49,128 crore was up 24.8 per cent YoY from Rs 39,354 crore.

According to Bloomberg consensus estimates, the top line was seen at Rs 1.39 trillion in Q4, Ebitda at Rs 23,544 crore, and net profit at Rs 13,704 crore.

During the March quarter, RIL incurred an exception gain of Rs 797 crore. However, other income fell sharply by 16.6 per cent YoY to Rs 3,881 crore. The exceptional gain was on account of the sale of Marcellus Assets—Chevron JV, amounting to Rs 850 crore, partially offset by a Rs 53 crore provision relating to claims on divestment of GAPCO. In segment-wise performance, O2C contributed the most both at revenue as well as Ebitda levels in the March quarter with Rs 1.01 trillion and Rs 11,407 crore, respectively. With global growth recovering, sequential performance was much better with the O2C top line up 20 per cent and Ebitda rising 17 per cent. “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…” said Mukesh D Ambani, chairman and MD director of RIL, in a statement.

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor