Reliance Industries Q3 Results: Net Profit Declines 13 Per Cent, Revenue Up 15 Per Cent YoY

Reliance Retail business reported net profit growth of 6.2 per cent YoY to Rs 2,400 crore; revenue from operations rose 18.6 per cent YoY to Rs 60,096 crore

Reliance Industries Ltd on Friday announced results for Q3 FY22-23. The conglomerate posted a decline net profit in Rs 17,806 crore down 13.3 per cent from Rs 20,539 crore year-on-year (YoY), the company said in a BSE filing. However, on sequential basis, the company posted a rise in net profit of 14.78 per cent from Rs 15,512 crore.

According to the corporate filing, operating revenue increased by 15.32 per cent YoY to Rs 2,20,592 crore from Rs 1,91,271 crore  lastyear. On a quarterly basis, however, the revenue from operations dropped from Rs 2,36,377 crore by 5.26 per cent.

Reliance posted consolidated revenues at Rs 2,40,963 crore ($29.1 billion), up 14.8 per cent year on year supported by continuing growth momentum in consumer businesses. Quarterly consolidated EBITDA stood at Rs 38,460 crore, rising 13.5 per cent year on year. 

As of December 31, 2022, outstanding debt stood at Rs 303,530 crore, while Cash and Cash Equivalents were at Rs 193,282 crore. 

The company said its EBITDA rise was backed by a strong growth in the subscriber base for its digital business, growth across consumption baskets, improvement in middle distillate cracks and higher gas price realisation with the increase in ceiling price, and marginally higher volumes in the Oil and Gas segment.

"All segments contributed to the robust growth in consolidated EBITDA on YoY basis. Our teams across businesses have done an excellent job in delivering strong operating performance through a challenging environment. All segments contributed to the robust growth in consolidated EBITDA on YoY basis," Mukesh Ambani, chairman and managing director, Reliance Industries, said.

"In O2C business, middle distillate product fundamentals remain strong with firm demand, constrained supply, and high natural gas prices in Europe. Downstream chemical products witnessed margin pressure with excess supply and relatively weak regional demand. Our focus remains on operating safely and reliably producing vital fuel and materials for consumers. Retail business had another quarter of strong progress with more Indians choosing to shop at Reliance Retail stores. We are focused on delivering superior products and value to customers while improving profitability," Ambani said.

Reliance Jio also reported record consolidated revenue at Rs 29,195 crore, up 20.8 per cent YoY, and EBITDA at Rs 12,519 crore, up 25.1 per cent YoY. Jio’s consolidated net profit for the quarter was Rs 4,881 crore, up 28.6 per cent YoY. Jio's net subscriber addition was 5.3 million, as gross adds remained strong at 34.2 million in the quarter; total customer base as on December 31 2022, was 432.9 million.

The retail business reported net profit growth of 6.2 per cent YoY to Rs 2,400 crore. Revenue from operations rose 18.6 per cent YoY to Rs 60,096 crore. EBITDA increased 24.9 percent YoY to Rs 4,773 crore.

The company said revenue increase was led by well-rounded growth across all baskets and channels. EBITDA from operations increased with a +70 basis point margin improvement driven by favourable mix, operating leverage and efficiencies. During the quarter, Reliance Retail increased its store count to 17,225. The quarter also recorded highest ever footfalls at 201 million across formats and geographies.

The company said Digital Commerce and New Commerce businesses continue to demonstrate strength of their business model and grew 38 percent YoY and contributed to 18 per cent of the revenue.