Reliance Industries Share Q3 Results

For the quarter ended December 2021, Reliance Industries reported 54.25% growth in net sales revenues for the Dec-21 quarter at Rs.191,271 crore. These are the YoY numbers on a consolidated basis. RIL also reported 29.86% growth in group EBITDA at Rs.33,886 crore. This implies EBITDA margins at 17.72% for the company overall at a macro level.

In terms of bottom line profit numbers for Reliance Industries for the Dec-21 quarter, PAT was up 41.58% at Rs.18,549 crore. This is again record level of profits like EBITDA. This implies PAT margins of 9.7% for the third quarter. Both operating margins and the net margins are lower on a YoY basis due to a sharply higher base. However, these very numbers are better on a sequential basis. Cash profits for RIL stood at Rs.30,147 crore for Q3.

Let us turn to the all-important Jio digital business, which is the second highest contributor to EBITDA after O2C business. Jio Platforms reported 13.8% higher sales revenues at Rs.24,176 crore in the Dec-21 quarter. EBITDA for the Jio Platforms business was up 18% on a YoY basis and stood at a record level of Rs.10,008 crore. Net profits on the Jio Platforms business were also up 8.9% at an all-time high level of Rs.3,795 crore.

During the quarter, Jio Digital managed to add 10.2 million customers to take the total tally to 421 million customers. Jio is already the most dominant player in terms of customer numbers, beating Bharti Airtel by a margin. The ARPU or average revenue per user for the quarter was up at Rs.151.60. Overall, the data traffic grew by 48% at 23.4 billion GB. For the quarter, the EBITDA margins of Jio Platforms business was healthiest among all at 48.6%.

Now we come to the retail business, which may be low on EBITDA but is the second highest contributor to the revenues after the O2C business. Reliance Retail reported 52.5% higher revenues at Rs.57,714 crore in the Dec-21 quarter. EBITDA for Reliance Retail business soot 52.3% higher in the quarter at a record level of Rs.3,522 crore. Net profits on the Reliance Retail business was also up 23.4% at a level of Rs.2,259 crore.

Reliance Retail added 837 stores in the quarter to take total store count to 14,412 stores in total pan-India, spread across 2.3 million SFT of area. Reliance Retail during the quarter invested $200 million in Dunzo for rapid delivery and gets over 25% stake in the Dunzo. There was growth across specific retail segments like consumer electronics, fashion, lifestyle and grocery store products. EBITDA margin for retail business stood at 7% for the quarter.

Check - Reliance Retail Acquires Stake in Dunzo

Finally, we turn to the Oil to Chemicals (O2C), which is the core cash cow driver for the company. This business comprising oil refining, polymers and intermediates, reported 56.8% higher revenues at Rs.131,427 crore in Q3 on the back of robust crude prices. EBITDA for the Reliance O2C business was up 38.7% at an all-time high level of Rs.13,530cr. However, EBITDA margins of the O2C business declined by 130 bps at 10.3%.

During the Dec-21 quarter, the total throughput including refinery throughput stood at 19.7 MMT compared to 18.2 MMT in the corresponding Dec-20 quarter. Cracker rates for cracker, PP and PE in the polymers / intermediates were stable at 86%, 89% and 87% in the quarter. The Singapore benchmark gross refining margins or GRMs were closer to $12.6/bbl up nearly 3-fold over last year.