Industry

Reliance Q4 profit more than doubles

Pace slows: Sharp demand contraction in the first half impacted growth for Reliance in the full year .   | Photo Credit: REUTERS

Following better year on year performance in its Jio Platforms, Retail and Oil to Chemicals (O2C) businesses Reliance Industries Ltd. (RIL) on Friday said fourth quarter consolidated net profit more than doubled to to ₹13,227 crore from ₹6,348 crore a year earlier as compared to ₹6,348 crore in the same period last year, up 108% on revenue growth of 13.6% to ₹172,095 crore from ₹ 15,1461 crore in the year ago period, up 13.62%.

For the year ended March 312021, RIL recorded an 18.3% decline in revenue to ₹539,238 crore, as compared to ₹ 659,997 crore in the previous year, down 18.29%. Net profit (after exceptional items) increased 34.8% to ₹53,739 crore as against ₹ 39,880 crore in the previous year. The board announced a dividend of ₹7 per share.

“The decrease in revenue was primarily due to lower volumes and realisation across key products in O2C segment,” the company said in a regulatory filing. “The retail segment also reported lower revenue, [affected by] on account of the effect of the pandemic. This was partially offset by higher ARPU [average revenue per user],” it added. Jio Platforms Ltd.’s net profit for the quarter zoomed 47.5% to ₹3,508 crore compared with ₹2,379 crore a year earlier. Revenue from operations rose 19% to ₹18,278 crore. Its value of services grew to ₹21,650 crore from ₹17,993 crore.

For the full year, Jio reported value of services of ₹ 86,493 crore and net profit of ₹ 12,537 crore. Its total customer base increased to 426.2 million, a net addition of 37.9 million customers. Jio clocked total data traffic of 62.5 billion GB in the year, recording 28.9% growth.

Reliance Retail reported quarterly net profit growth of 45% to ₹2,247 crore. Revenue from operations rose 20% to ₹41,296 crore. For FY21, net profit stood at ₹5,481 crore. Revenue for the year slipped 3.3% to ₹157,629 crore lower by 3.3%. For the retail business the company is hopeful of better performance in the future.Revenue from operations slipped 4.92% to ₹1,39,077 crore from ₹1,46,272 crore in FY 2019-20.

“The business is well positioned and committed to relentlessly serve its customers in this volatile and uncertain environment and is taking decisive actions to secure its people as a foremost priority in these trying times,” the company said.

In O2C business, annual revenues declined 29% to ₹3,20,008 crore on account of lower volumes and price realisation across key products. Sharp demand contraction in the first half of the year impacted growth for the year. Mukesh Ambani, CMD, said, “We have registered robust recovery in O2C and retail segments, and resilient growth in the 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.”

“Our consumer businesses have proved to be a digital and physical lifeline for the nation in these challenging times. Jio’s high-speed connectivity services enabled millions of Indians to work from home, study from home and even receive healthcare from home. Reliance Retail ensured safe supplies of essential goods and services to customer homes,” he said.

(With PTI inputs)


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Printable version | Jun 20, 2021 10:38:52 AM | https://www.thehindu.com/business/Industry/reliance-q4-profit-more-than-doubles/article34453214.ece

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