New Delhi, (Asian independent) Reliance Industries Ltd (RIL) on Friday reported a decline in its consolidated net profit for the quarter ended September 30 of FY2020-21 on a year-on-year (YoY) basis due to the effect of an exceptional item.
Accordingly, the company’s consolidated net profit during the first quarter of FY21 declined to Rs 10,602 crore from Rs 11,352 crore reported for the corresponding period of the previous fiscal.
The consolidated net profit attributable to owners of the company also fell to Rs 9,567 crore from Rs 11,262 crore reported for the corresponding quarter of the previous fiscal.
On a quarter-quarter (QoQ) basis, however, the company’s consolidated Q2 net profit stood higher by 28 pers cent.
Also, on a QoQ basis, the company’s cash profit before exceptional item was Rs 16,837 crore ($2.3 billion), higher by 20.9 per cent.
Compared to the April-June quarter, the company’s Q2 revenue grew by 27.2 per cent to Rs 128,385 crore ($17.4 billion).
“We delivered strong overall operational and financial performance compared to previous quarter with recovery in petrochemicals and retail segment, and sustained growth in ‘Digital Services’ business,” said Mukesh Ambani, Chairman and Managing Director, Reliance Industries.
“Domestic demand has sharply recovered across our O2C business and is now near pre-Covid level for most products. Retail business activity has normalised with strong growth in key consumption baskets as lockdowns ease across the country. With large capital raise in last six months across ‘Jio and Retail’ business, we have welcomed several strategic and financial investors into Reliance family.
“We continue to pursue growth initiatives in each of our businesses with a focus on the India opportunity,” he added.
On a YoY standalone basis, RIL reported a fall in net profit for the quarter at Rs 6,546 crore from Rs 9,702 crore reported in the corresponding period of the last fiscal.
While on a QoQ basis, the company’s cash profit for the quarter was Rs 10,350 crore.
The standalone revenue for the quarter on a QoQ basis, grew by 23.3 per cent to Rs 64,431 crore ($8.7 billion).
Besides, the company reported that Jio Platforms’ consolidated net profit grew by 19.8 per cent to Rs 3,020 crore on a QoQ basis.
The consolidated revenue from operations, including access revenues, grew by 7.2 per cent to Rs 18,496 crore, QoQ.
Furthermore, the company’s consolidated value of sales and services of Reliance Retail for 2QFY21 increased by 30 per cent QoQ to Rs 41,100 crore, “a strong performance given that the full store network was not operational and with footfalls still significantly lower than pre-Covid levels.”
“Revenue from operations for 2Q FY21 increased by 29.7 per cent QoQ to Rs 36,566 crore, and at the same level as the last year despite restricted store operations and lower footfalls,” the company said in a statement.
“With revenues of Rs 41,100 crore and EBITDA of Rs 2,006 crore, the performance marks an industry leading performance with a ‘V shaped’ recovery over 1QFY21, as sales grew 30 per cent, EBIDTA nearly doubling and margin improving +170 bps QoQ,” it added.
In terms of the company’s ‘O2C – Refining and Marketing’, the segment revenues for 2QFY21 increased by 33.3 per cent on QoQ to Rs 62,154 crore primarily due to higher crude oil price.
On the ‘O2C – Petrochemicals’, the company said the segment revenue increased by 17.8 per cent QoQ with higher prices across product portfolio and higher volumes.
“PP, PE and PVC prices strengthened by 13 per cent, 17 per cent and 25 per cent QoQ, respectively, due to tight supply with regional turnarounds and improvement in demand. With increase in feedstock prices, PX prices firmed 10 per cent QoQ while PTA and MEG prices increased by 4 per cent and 10 per cent respectively,” the company said.