InvestorQ : What is your view on the Reliance Q3 results and how did the various businesses of Reliance perform in the third quarter?
Arti Chavan made post

What is your view on the Reliance Q3 results and how did the various businesses of Reliance perform in the third quarter?

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Rutuja Nigam answered.
4 months ago
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It was a stellar show by Reliance overall. For the quarter, Reliance Industries reported record level of gross revenues for any quarter at Rs.209,000 crore in one quarter. Most of its business divisions including O2C, Jio Platforms and even retail segment recorded highest levels of EBITDA and net margins. Here is the financial summary of RIL for Q3.

Reliance Industries

Rs in Crore

Dec-21

Dec-20

YOY

Sep-21

QOQ

Total Income (Rs cr)

₹ 1,91,271

₹ 1,23,997

54.25%

₹ 1,74,104

9.86%

EBITDA (Rs cr)

₹ 33,886

₹ 26,094

29.86%

₹ 30,283

11.90%

Net Profit (Rs cr)

₹ 18,549

₹ 13,101

41.58%

₹ 13,680

35.59%

Diluted EPS (Rs)

₹ 27.76

₹ 19.93

₹ 20.60

EBITDA Margin

17.72%

21.04%

17.39%

Net Margins

9.70%

10.57%

7.86%

Here are the highlights of the performance of the various business units of Reliance Industries.

· First let us look at RIL as a whole. Reliance reported 54.25% growth in net sales at Rs191,271 crore in the quarter. EBITDA grew 29.86% to a high of Rs.33,886 crore implying EBITDA margins at 17.72% overall.

· PAT was up 41.58% at Rs.18,549 crore in the Dec-21 quarter. PAT margins stood at 9.7%. Operating margins and net margins were lower yoy. Reliance reported cash profits at Rs.30,147 crore for Q3.

· Digital business has been the backbone of Reliance Industries. For the third quarter, Jio Platforms reported 13.8% higher sales revenues at Rs.24,176 crore. EBITDA for Jio Platforms business increased 18% yoy to Rs.10,008 crore.

· It is true that Jio has been driving the growth in EBITDA for Reliance group in the last few quarters. Net profits on the Jio Platforms business were up 8.9% and scaled an all-time high of Rs.3,795 crore.

· Jio Digital added 10.2 million customers to take its total tally to 421 million customers for its voice and data services. ARPU or average revenue per user for the quarter was up at Rs.151.60 while data traffic grew 48% at 23.4 billion GB.

· Now to the third segment of retail business of Reliance. Revenues were up 52.5% at Rs.57,714 crore while EBITDA was higher by 52.3% at record levels of Rs.3,522 crore. Net profits of the retail business were also higher by 23.4% at Rs.2,259 crore.

· Reliance Retail added 837 stores in the quarter taking the store count to 14,412 stores. Reliance Retail invested $200 million to buy 25% in Dunzo for rapid delivery. Big growth was seen in consumer electronics, fashion, lifestyle and grocery store products.

· The oil to chemicals or O2C business saw 56.8% higher revenues at Rs.131,427 crore in Q3 on robust crude prices. The O2C business reported 38.7% growth in EBITDA at Rs.13,530cr. EBITDA margins of O2C business fell 130 bps at 10.3%.

· Refinery throughput for the quarter increased from 18.2 MMT to 19.7 MMT yoy. The Singapore benchmark gross refining margins or GRMs were closer to $12.6/bbl up nearly 3-fold over last year. RIL enjoys GRMs around the benchmark.

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