RIL Q3 results: Reliance Industries’ net profit rises 0.56% to Rs 18,645 crore; revenue rises 11% as Jio, O2C drive performance
Mukesh Ambani-led Reliance Industries Ltd (RIL) reported largely stable earnings for the December quarter, with consolidated profit inching up marginally even as revenue posted double-digit growth, supported by steady operating performance across its businesses.The conglomerate reported a marginal 0.56 per cent year-on-year rise in consolidated net profit attributable to shareholders at Rs 18,645 crore for the December quarter, while revenue from operations grew a robust 11 per cent to Rs 2.69 lakh crore, as per ET.On a sequential basis, profit increased about 3 per cent from Rs 18,165 crore in the September quarter, while revenues rose 4 per cent quarter-on-quarter, reflecting steady momentum across the company’s diversified businesses.Earnings before interest, tax, depreciation and amortisation (EBITDA) for the quarter stood at Rs 50,932 crore, up 6 per cent year-on-year, supported by a strong operating performance in the Jio and oil-to-chemicals (O2C) segments.Commenting on the results, Mukesh Ambani, chairman and managing director of Reliance Industries, said the company is entering a new phase of growth.“Reliance is entering a new phase of value creation with its initiatives in the AI and New Energy domains. I am confident that Reliance will play a pioneering role in the evolution of these epoch-defining technologies, providing sustainable solutions at scale for India and the world,” Ambani said.During the quarter, depreciation rose 11 per cent year-on-year to Rs 14,622 crore, while finance costs increased 7 per cent to Rs 6,613 crore, largely due to the operationalisation of 5G spectrum assets. Tax expenses for the period climbed 10 per cent year-on-year to Rs 7,530 crore.Capital expenditure for the quarter ended December stood at Rs 33,826 crore (about $3.8 billion), driven by investments in ongoing growth projects in the O2C and new energy businesses, along with continued spending to strengthen and expand the Jio and Retail networks and infrastructure.
O2C business sees revenue, EBITDA growth
Reliance’s core oil-to-chemicals (O2C) business reported an 8 per cent increase in revenues to Rs 1.69 lakh crore during the quarter. Segment EBITDA rose 15 per cent year-on-year to Rs 16,507 crore, aided by a sharp rise in transportation fuel cracks and higher sulphur realisations.The company said these gains were partially offset by weakness in downstream chemical margins and higher feedstock freight rates, while favourable ethane cracking economics and domestic market placements continued to support profitability.Fuel retailing operations under Jio-bp expanded their network 14 per cent year-on-year to 2,125 outlets, driving volume growth of 24.7 per cent in high-speed diesel (HSD) and 20.8 per cent in motor spirit (MS).Highlighting the segment’s performance, Ambani said, “The robust growth in O2C business was led by significantly higher fuel margins with favourable demand-supply dynamics, along with operational flexibility. I am happy to highlight the strong growth in our fuel retailing business, with continuing expansion of the Jio-bp network. Upstream segment EBITDA was impacted by lower volumes and prices.”The company added that agile crude sourcing helped sustain throughput during the quarter despite procurement challenges, with total throughput rising 200 basis points year-on-year to 20.6 million metric tonnes (MMT).
