RELIANCE INDUSTRIES LTD - Q3 FY 21- RESULTS PRESS STATEMENT - EXCERPTS - AND ANALYSIS

 

RELIANCE INDUSTRIES LTD

Q3 FY 21 RESULTS

PRESS STATEMENT

- EXCERPTS -

AND ANALYSIS

 

 22nd January 2021

 

RESULTS AT A GLANCE (Q-O-Q)

CONSOLIDATED - RIL

•             Revenue for the quarter was Rs.137,829 crore ($ 18.9 billion) higher by 7.4%

•             EBITDA before exceptional item for the quarter was Rs.26,094 crore ($ 3.6 billion) higher by 12.0%

•             Net Profit before exceptional item for the quarter was Rs.15,015 crore ($ 2.1 billion) higher by 41.6%

•             Cash Profit before exceptional item was Rs.21,473 crore ($ 2.9 billion) higher by 27.5%

•             EPS before exceptional item was Rs.20.5 per share, increased 38.2%

 

STANDALONE – RIL

•             Revenue for the quarter was Rs.71,454 crore ($ 9.8 billion) higher by 10.9%

•             EBITDA before exceptional item for the quarter was Rs.12,306 crore ($ 1.7 billion) higher by 4.2%

•             Net Profit before exceptional item for the quarter was Rs.8,744 crore ($ 1.2 billion) higher by 33.6%

•             Cash Profit before exceptional item for the quarter was  Rs.9,376 crore ($ 1.3 billion) higher by 30.2%

•             Exports for the quarter was Rs.31,559 crore ($ 4.3 billion) decline of 8.5%

 

CONSOLIDATED RESULTS FOR QUARTER ENDED 31ST DECEMBER, 2020

 

·       STRONG SEQUENTIAL REBOUND ACROSS ALL BUSINESSES

·       HIGHEST EVER QUARTERLY CONSOLIDATED PAT BEFORE EXCEPTIONAL ITEMS AT  Rs.15,015 CRORE

·       RECORD QUARTERLY CONSOLIDATED EBITDA BEFORE EXCEPTIONAL ITEMS AT  Rs. 26,094 CRORE

·       RECORD QUARTERLY EBITDA FOR DIGITAL SERVICES AT Rs.8,942 CRORE

·       HIGHEST EVER QUARTERLY EBITDA FOR RETAIL AT Rs.3,102 CRORE

·       RIL AND BP ANNOUNCE THE START OF PRODUCTION FROM R CLUSTER, ULTRA-DEEP-WATER GAS FIELD IN BLOCK KG D6 OFF THE EAST COAST OF INDIA

                           STRATEGIC UPDATES

•             Reliance Retail Ventures Limited (RRVL), a subsidiary of Reliance Industries Limited (RIL) completed the capital raise of ₹ 47,265 crore for 10.09% equity stake. This is the largest fund raise in the sector.

 

•             Reliance Industries Limited (RIL) and BP announced the start of production from the R Cluster, ultra-deep-water gas field in block KG D6 off the east coast of India. RIL and BP are developing three deepwater gas projects in block KG D6 – R Cluster, Satellites Cluster and MJ – which together are expected to meet ~15% of India’s gas demand by 2023. These projects will utilise the existing hub infrastructure in KG D6 block. RIL is the operator of KG D6 with 66.67% participating interest and BP holds 33.33% participating interest.

 

•             The Company supported job creation in the economy during the pandemic-impacted period and generated in excess of 50,000 new jobs during April – December 2020 in Consumer businesses and last mile delivery.

CONSOLIDATED – JIO PLATFORMS LIMITED

•             Revenue including access revenues for the quarter was Rs.22,858 crore ($ 3.1 billion) higher by 5.3%

•             EBITDA for the quarter was Rs.8,483 crore ($ 1.2 billion) increase of 6.4%

•             Net profit for the quarter was Rs.3,489 crore ($ 477 million) growth of 15.5%

•             Total Customer base as on 31st Dec 2020 of 410.8 million, net addition of 5.2 million customers.

•             ARPU during the quarter of ₹ 151.0 per subscriber per month as against ₹ 145.0 per subscriber per month in the trailing quarter

•             Total data traffic during the quarter of 1,586 crore GB; 4.0% growth

 

CONSOLIDATED – RELIANCE RETAIL

 

•             Revenue for the quarter was Rs.37,845 crore ($ 5.2 billion) lower by 7.9%

•             EBITDA for the quarter was Rs.3,087 crore ($ 422 million) higher by 53.9%

•             Net profit for the quarter was ₹ 1,830 crore ($ 250 million) higher by 88.1%

•             Cash Profit for the quarter was ₹ 2,482 crore ($ 340 million) higher by 76.3%

•             12,201 operational physical stores; 327 stores opened during the quarter

•             Area of operation – 31.2 million sq. feet as compared to 29.7 million sq. feet in trailing quarter.

 

OPERATIONAL HIGHLIGHTS

CONSOLIDATED JIO PLATFORMS LIMITED (In ₹ crore)	3Q FY21		2Q FY21		% chg. w.r.t. 2Q FY21		9M FY21
Value of Services	22,858		21,708		5.3%		64,843
Revenue from Operations	19,475		18,496		5.3%		55,225
EBITDA	8,483		7,971		6.4%		23,786
EBITDA margin*		43.6%		43.1%		43.1%
Net Profit	3,489		3,020		15.5%		9,029

 

 

• JPL has achieved a milestone this quarter with annualised revenue run-rate in excess of US$ 10 billion with strong Revenue and EBITDA growth.

• Consolidated Value of Services, including access revenues, grew by 5.3% Q-o-Q to ₹ 22,858 crore on back of higher ARPU and FTTH expansion.

• Consolidated EBITDA grew by 6.4% Q-o-Q to ₹ 8,483 crore and EBITDA margin of 43.6% up from 43.1% Q-o-Q owing to growing revenue and operating leverage.

• Consolidated Net Profit grew by 15.5% to ₹ 3,489 crore, Q-o-Q

• Total Customer base as on 31st Dec 2020 of 410.8 million, net addition of 5.2 million customers.

• ARPU during the quarter of ₹ 151.0 per subscriber per month as against ₹ 145.0 per subscriber per month in the trailing quarter

• Total data traffic during the quarter of 1,586 crore GB; 4.0% growth Q-o-Q

• Total voice traffic during the quarter of 97,496 crore minutes; 4.6% growth Q-o-Q

• JPL has achieved a milestone this quarter with annualised revenue run-rate in excess of US$ 10 billion with strong Revenue and EBITDA growth.

• Consolidated Value of Services, including access revenues, grew by 5.3% Q-o-Q to ₹ 22,858 crore on back of higher ARPU and FTTH expansion.

• Consolidated EBITDA grew by 6.4% Q-o-Q to ₹ 8,483 crore and EBITDA margin of 43.6% up from 43.1% Q-o-Q owing to growing revenue and operating leverage.

• Consolidated Net Profit grew by 15.5% to ₹ 3,489 crore, Q-o-Q

• Total Customer base as on 31st Dec 2020 of 410.8 million, net addition of 5.2 million customers.

• ARPU during the quarter of ₹ 151.0 per subscriber per month as against ₹ 145.0 per subscriber per month in the trailing quarter

• Total data traffic during the quarter of 1,586 crore GB; 4.0% growth Q-o-Q

• Total voice traffic during the quarter of 97,496 crore minutes; 4.6% growth Q-o-Q

Connectivity

• Wireless gross addition was robust at 25.1 million as smart phone shipments improved with easing restrictions across the country.

• Monthly churn rate for wireless subscribers remained elevated at 1.63% with continued impact of COVID and other factors.

• Jio honoured its commitment and made all domestic voice calls absolutely free from 1st January 2021. Jio had earlier assured its users that the charge for offnet outgoing calls would continue only till the time TRAI abolished IUC charges.

• During 3Q FY21, average data consumption per user per month was at 12.9 GB as against 12.0 GB per user per month during the trailing quarter and average voice consumption was at 796 minutes per user per month during the quarter as compared to average voice consumption at 776 minutes per user per month during the trailing quarter.

• FTTH services witnessed increased uptake during the quarter on the back of unique offering and widespread network across the country.

Digital Platforms

• Indigenously developed 5G Radio integrated with Jio’s 5G Core Network and 5G Smartphones to achieve over the air throughputs in excess of 1 Gbps. In-house Massive MIMO and indoor 5G small cell under advanced stages of development.

• JioMeet crossed 15 million users during the quarter. JioMeet is now evolving as a complete platform with solutions for different segments like large enterprises, healthcare industry, educational and government institutions.

• Jio’s bundled broadband offering for SMBs has had an encouraging response. A widescale commercial deployment will see Jio offering unique solutions across Connectivity, Communication, Conferencing, Productivity, Marketing, Infotainment and Devices. The addressable market will be significantly expanded with these digital solutions and ubiquitous fibre presence.

• Besides deploying IoT solutions for Jio Home users, the Jio pan India IoT network is operational for application in connected vehicles, smart metering, smart cities, connected assets and hospitality.

Update on Investments into JPL

• During the quarter, Google invested, post requisite regulatory approvals, an amount of ₹ 33,737 crore into JPL for 7.73% stake. This has resulted in total investment of ₹ 152,056 crore by the investors for a stake of 32.88% in JPL.

CONSOLIDATED RELIANCE RETAIL (In ₹ Crore)	3Q FY21		2Q FY21		% chg. w.r.t. 2Q FY21		9M FY21
Value of Sales and Services	37,845		41,100		(7.9%)		110,565
Revenue from Operations	33,018		36,566		(9.7%)		97,781
EBITDA	3,087		2,006		53.9%		6,172
EBITDA Margin (%)*		9.3%		5.5%		6.3%
Area Operated (Mn. Sq. ft.)		31.2		29.7		31.2

 

• The business delivered a healthy performance with record profit delivery in an operating environment that continued to remain challenging with sporadic COVID related restrictions and local issues.

• Value of Sales and Services for 3Q FY21 decreased by 8% Q-o-Q to ₹ 37,845 crore while EBITDA for 3Q FY21 increased by 54% Q-o-Q to a record ₹ 3,087 crore, with underlying operating margin (excluding the impact of the investment income) at 7%, coming in ahead of last quarter and same time last year. This was led by near doubling of Fashion and Lifestyle earnings, continued benefits from cost management initiatives and a boost from higher investment income of ₹ 775 crore.

Quarterly Performance

• COVID related curbs on store operations eased during the quarter, enabling 96% of stores to be opened, although only half of them were fully operational. Stores in smaller towns are recovering faster.

• Overall footfalls remained at similar levels to last quarter but still lower than pre-COVID levels.

• Overall revenue, which apart of being impacted by the challenging operating conditions, was further affected by (i) the transfer out of the fuel retailing business to the RIL-BP JV and (ii) the decision to convert Reliance Market stores to fulfilment centers to enable city expansion of New Commerce.

• The Grocery business and Electronics stores sustained double digit growth while the Fashion and Lifestyle business delivered a strong rebound, surpassing pre COVID levels.

• The business accelerated the pace of new store expansion with 327 stores opened during the quarter taking the total store count to 12,201 stores spread over 31.2 million sq. ft.

• Digital commerce momentum continued with orders up 12X Y-o-Y alongside growth in portfolio, traffic and customer base across platforms

• New Commerce which seeks to foster the spirit of entrepreneurship through a model of shared prosperity and inclusive growth is well underway and making steady progress. At the end of the quarter, the retail business had extended its partnerships to over a million merchants across consumption baskets with plans to accelerate this in the days ahead.

• Reliance Retail has added over 50,000 new jobs since the beginning of pandemic and contributes positively to the social and financial well-being of all employees and their families.

Consumer Electronics

• Revenue growth momentum was sustained at Consumer Electronics stores (excluding Jio devices) on the back of a market beating festive season and particularly strong performance in Tier 2 and 3 cities.

• Successful activations around affordability, new product launches and offers in key categories enabled broad based growth, particularly with Laptops, Tablets, Large Appliances leading the way.

• Omni commerce capabilities were further augmented enabling the business to deliver an unparalleled service proposition across 1,300 cities where it is currently present. Over 95% orders were delivered to customers from stores in less than 6 hours.

Fashion & Lifestyle

• Apparel & Footwear business staged a strong bounce back driven by impactful event activation, which led to strong festive season performance and enabled 1.5X growth over last quarter.

• Stores witnessed stepped up conversions and increased average bill values over last year driven by new collections across occasion wear and winter-wear.

• AJIO continues to scale new highs with 5X growth in orders over previous year and significant improvement across customer metrics and operating parameters.

• Relationships with merchants were further extended to 1,900 cities with 2X more merchant partners onboarded.

• Jewelry revenues grew in high double digits over last year and nearly doubled over the previous quarter, aided by a strong festive and wedding season buying. Leveraging its design capabilities, the business strengthened its portfolio offerings with the launch of a range of new collections.

• With stores reopening, the Luxury and Premium Brands more than doubled over the last quarter. Digital commerce revenues grew 3X over last year and the distance selling initiative pioneered by the business is contributing meaningfully both to sales and customer engagement.

Grocery

• In Grocery while overall revenue was impacted by COVID restrictions, local issues and the decision to transition Market stores into fulfillment centers to enable New Commerce expansion, the continuing business delivered a healthy double-digit growth.

• The quarter saw the continued trend of lower footfalls being more than offset by higher bill values across the store network.

• Rapid scale up of JioMart continues with more traffic, customers and orders.

• Brand partnerships, strengthened owned brand portfolio and impactful activation, enabled the business deliver robust growth in the festive period with staples, FMCG and Indian sweets doing particularly well.

• As it expands its New Commerce footprint, the business continues to grow its bond and win-win partnerships, both at the backend with producers and at the front end with merchants. The business is currently present in 23 cities and with the investments in supply chain and technology that are currently underway, the business is gearing up to be a trusted partner for millions across the country.

With the Indian economy poised for a rapid recovery in 2021 after overcoming the COVID-19 constraints, Reliance Retail is confident of maintaining its industry leading and market beating performance.

OIL TO CHEMICALS (O2C) (In ₹ Crore)	3Q FY21		2Q FY21		% chg. w.r.t. 2Q FY21		9M FY21
Segment Revenue	83,838		76,184		10.0%		218,928
Segment EBITDA	9,756		8,841		10.3%		26,763
EBITDA Margin (%)		11.6%		11.6%		12.2%
Total Throughput (MMT) (including Refining Throughput)		18.2		16.8		52.6
Production meant for sale (MMT)*		16.2		14.9		46.9

 

Segment Revenues for 3Q FY21 increased by 10.0% Q-o-Q to ₹ 83,838 crore primarily on account of higher volumes mainly in Transportation fuels, PTA and Polyester supported by improved product realization across Polymers, Intermediates and Polyester.

Segment EBITDA for 3QFY21 improved by 10.3% Q-o-Q to ₹ 9,756 crore primarily on account of higher product sales and shifting of product placement from exports to domestic market. On O2C basis, total throughput has increased from 16.8 MMT to 18.2 MMT on Q-o-Q basis due to improved product demand in Q3 and scheduled shutdown taken in Q2.

During the quarter, Polymers margins were at a record high while intermediate margins were sequentially better. Petrochemical “Production meant for sale” for the quarter was 4.2 MMT, with polyester production higher at 16% Q-o-Q.

Business Environment

• Global oil demand for 3QFY21 is estimated to be 94.5 mb/d, or 1.5 mb/d higher than 2Q FY21 and 11.4 mb/d higher than 1Q FY21 following a sharp recovery.

• Oil prices are supported by supply-cut in OPEC+ output, led by Saudi Arabia and improved visibility on vaccine roll-out. Average Brent crude prices were higher by 3% Q-o-Q at $44.2/bbl.

• Transportation fuel markets continued to remain challenging with excess supply and second COVID-19 wave hurting demand from European and US markets.

• Domestic demand in India continued to improve with oil product demand growth at 19% Q-o-Q. Oil demand for December was at 99% of pre-COVID level.

• Restraints on public transport and increased preference for personal vehicles improved demand for personal mobility fuels – gasoline and diesel. Domestic gasoline demand continued its upward month-on-month growth trend through the quarter. Gasoline demand in December was at 110% of pre-COVID level, while diesel demand was at 103% of pre-COVID level.

• Even though regrades improved, ATF demand remained below pre-COVID level, as airlines continue to under-operate due to ban on international flights which has been extended till 31st Jan’2021.

• Demand growth for polymers, polyester and elastomers was robust on a Q-o-Q basis led by FMCG, Health & Hygiene, Pipes, Auto, Paint and Apparels.

• Overall polymer demand grew by 8% on Q-o-Q basis and polyester demand growth was 38% Q-o-Q.

• The lockdown period has led a systemic shift in consumer behavior and purchasing preference from offline to online. There is also increased consumption of hygiene related products. This is expected to have a lasting impact on consumption patterns.

Polymers

• PP, PE and PVC prices strengthened during the quarter by 18%, 8% and 29% Q-o-Q respectively amidst strong demand recovery in Asian markets.

• PP, PE and PVC margins over naphtha increased by 31% ($ 698/MT), 13% ($541/MT) and 15% ($ 628/MT over Naphtha/ EDC) respectively on Q-o-Q basis led by strong demand recovery across sectors. PVC prices were at 10 years high level during the quarter.

• RIL achieved highest ever quarterly domestic sales by leveraging unparalleled supply chain, multimodal logistics and pan-India warehousing facilities.

Intermediates and Polyesters

• PX, PTA and MEG prices strengthened during the quarter by 3%, 15% and 8% Q-o-Q respectively amidst hike in energy value and improved downstream demand markets. PX, PTA and MEG margins increased by 4% ($141/MT), 57% ($168/MT) and 17% ($218/MT) amidst lower inventory across the chain in China.

• Increase in Polyester prices lagged the raw material and increased by 2-8%. RIL continued to reap the benefits of higher capacity utilization on the back of festive demand and availability of labour in the downstream sector. RIL’s Polyester margins improved Q-o-Q on back of differentiated and specialty products.

Transportation fuels

• RIL Transportation fuels volume increased from 8.7 MMT in 2Q FY21 to 9.7 MMT in 3Q FY21 with improved domestic demand.

• Singapore gasoline cracks averaged $3.0/bbl during 3QFY21 as against $2.9 /bbl in 2QFY21 and $8.2 /bbl in 3QFY20. The winter period is typically a low season for gasoline demand, which was exacerbated by COVID-19 factors. Global gasoline demand declined 0.5 mb/d Q-o-Q to 24.5 mb/d, due to seasonal low demand in winter and lockdowns in US, Europe.

• Singapore gasoil 10-ppm cracks averaged $4.3/bbl during 3QFY21 as against $5.0 /bbl in 2QFY21 and $15.4 /bbl in 3QFY20. The cracks averaged lower Q-o-Q with much of Europe still struggling with recurring COVID-19 outbreaks, a closed Western arbitrage kept Middle Eastern volumes towards Southeast Asia. Global gasoil demand improved 0.5 mb/d Q-o-Q to 27.6 mb/d

• Singapore Jet/kero cracks averaged $2.4/bbl during 3QFY21 as against $-0.7 /bbl in 2QFY21 and $13.9 /bbl in 3QFY20. Jet/Kero gained strength on winter demand and tight supply.

RIL O2C Operations

• Utilization rates across RIL O2C facilities remained at high levels in 3Q FY 21.

• Refining throughput was 16.7 MMT an increase of 9.2% over 2Q FY21.

• Cracker operating rate was 96% impacted by scheduled shutdown of ROGC at Jamnagar.

• LPG production was maximized based on favorable economics over marginal Alkylate volumes.

OIL AND GAS (EXPLORATION & PRODUCTION) BUSINESS (In ₹ Crore)	3Q FY21		2Q FY21		% chg. w.r.t. 2Q FY21		9M FY21
Segment Revenue	431		355		21.4%		1,292
Segment EBITDA		4		(194)		(222)
EBITDA Margin (%)		0.9%		(54.6%)		(17.2%)
Production (BCFe)		28.5		28.3		86.2

 

Segment Revenues for 3Q FY21 increased by 21.4% Q-o-Q to ₹ 431 crore primarily due to higher commodity price realization and incremental production from R-Cluster.

• KGD6

o Production and gas supplies from R Cluster field, India’s first ultra-deepwater gas field in block KGD6 off the east coast of India, have commenced on 18th Dec’20.

o R Cluster is the first of the three projects to come onstream. Located at a water depth of greater than 2000 meters, it is the deepest offshore gas field in Asia. Current production in line with expectation and being ramped-up.

o Expected to reach plateau production of about 12.9 MMSCMD in H2 CY21.

o Production for the period 18th Dec’20 to 31st Dec’20 is 1.6 BCF (RIL’s share).

o Gas demand has recovered to pre-COVID levels as we pursue the second round of bidding for gas sales.

• KGD6 – Other Projects:

o Satellite Cluster

➢ All five wells drilled and completed.

➢ Final installation campaign on track for commencement in Q4 FY21.

➢ First gas is expected in mid-2021.

o MJ Field

➢ Drilling campaign underway

➢ First installation campaign to commence in Q4 FY21

• CBM: Production has remained stable at 0.9 MMSCMD. Focus is on for augmenting production.

• US Shale:

o Given the current weak macro environment and its impact on price realisation, both the Marcellus and Eagleford JVs are pursuing minimal activity and have optimized costs.

o For Oct’2020- Dec’2020 period, the overall price realization was at $ 2.05/Mcfe, and production was at 22.7 Bcfe.

o During the quarter, Chevron sold its interest in Marcellus JV to EQT Aurora LLC.

o Due to the adverse changes in market environment, reduction in activity by operator and recent operational performance, the Shale Gas subsidiaries have impaired their assets including unavoidable costs based on contractual commitments, totaling to ` 15,691 crore

MEDIA BUSINESS

(In ₹ Crore) 3Q FY21

2Q

FY21

% chg. w.r.t. 2Q FY21 9M FY21

Value of Sales and Services 1,650 1,234 33.7% 3,818

Revenue from Operations 1,422 1,061 34.0% 3,290

EBITDA 324 166 95.2% 517

EBITDA Margin (%)* 22.8% 15.6% 15.7%

*EBITDA Margin is calculated on revenue from operations

• Revenues recovered fully from the pandemic impact in 3QFY21, rising sharply by 34% Q-o-Q to ₹ 1,422 crore. Festive season buoyancy and sustained elevation in media consumption largely eliminated the COVID-linked drag on ad-spending. Revenue of the primary business of broadcast and digital media (i.e ex-film production) grew 35% Q-o-Q and 1% Y-o-Y, as a result

of sustained viewership and faster than expected recovery in Ad revenues.

• EBITDA for 3Q FY21 grew 96% Q-o-Q and 21% Y-o-Y to ₹ 324 crore. EBITDA margins rose to ~23% as all three verticals (Entertainment, TV and Digital News) improved their profitability levels. Broad-based cost controls implemented across business lines since last year have improved efficiencies. This has resulted in driving down operating expenses, even amidst a festive season thrust on content and marketing. Growth in digital reach and annuity-style revenue streams also continues to accentuate operating leverage. Hence, a recovery in revenue has resulted in sharp margin expansion.

• Recovery in advertising has been sharp and broad-based, resulting in group revenue reviving to pre-pandemic levels. Entertainment attained its highest ever profitability led by programming returning to normalcy, and high impact content driving ad-yields up during festive season. Sustained focus on high-quality reportage sans hyperbole continues to bolster the News business, even amidst the absence of BARC ratings during the quarter. Digital News revenue rose >50% Y-o-Y after having broken even in the last quarter, underscoring the success of the platforms in a fast-growing but hyper-competitive domain.

• Subscription revenue was up 6% Q-o-Q and 2% Y-o-Y, as lockdown impact on some consumer segments is tapering. Domestic subscription revenue growth remained strong due to improved tie-ups in TV and Digital, offsetting stress in international.

• OTT platform Voot’s video-views rose 30% Q-o-Q, driven by complete resumption of network content. With an average daily time spent per viewer (TSV) of >50 minutes, Voot continued to be a leader amongst direct peers.

CONSOLIDATED FINANCIAL HIGHLIGHTS

Sr. No.	Particulars	3Q FY21	2Q FY21	% chg. w.r.t. 2Q FY21	9M FY21
1	Value of Sales and Services (Gross of GST)	137,829	128,385	7.4%	367,143
2	EBITDA	26,094	23,299	12.0%	70,978
3	Depreciation, Depletion and Amortization Expense	6,665	6,626	0.6%	19,599
4	Finance Costs	4,326	6,084	(28.9%)	17,145
5	Exceptional Item (Refer note)	(121)	-	-	4,845
6	Profit Before Tax (after exceptional item)	14,982	10,589	41.5%	39,079
7			Tax Expenses
7(a)	Current Tax	295	378	(22.0%)	1,596
7(b)	Deferred Tax	(207)	(391)	(47.1%)	(1,261)
8	Profit for the Period (before exceptional item)	15,015	10,602	41.6%	33,899
9	Profit for the Period (after exceptional item)	14,894	10,602	40.5%	38,744

 

Note: The exceptional loss of ₹ 121 crore in Q3 FY 21 is on account of impairment of shale gas assets (net of deferred tax asset thereon).

The exceptional gain of ₹ 4,845 crore in 9M FY 21 includes profit on divestment of shares of Reliance BP Mobility Limited of ` 4,966 crore in Q1 FY 21.

• For the quarter ended 31st December, 2020, RIL achieved revenue of ₹ 137,829 crore ($ 18.9 billion), as compared to ₹ 128,385 crore in the trailing quarter. The increase in revenue was primarily due to higher price realizations and higher volumes in O2C segment, higher ARPU and FTTH expansion in Digital services business.

Exports (including deemed exports) from RIL’s India operations declined by 8.5% to ₹ 31,559 crore ($ 4.3 billion) as against ₹ 34,501 crore in the trailing quarter owing to increased domestic demand.

• EBITDA increased by 12.0% to ₹ 26,094 crore ($ 3.6 billion) from ₹ 23,299 crore in the trailing quarter, led by EBITDA margin improvement across consumer businesses.

• Finance cost decreased by 28.9% to ₹ 4,326 crore ($ 592 million) as against ₹ 6,084 crore in the trailing quarter. The decrease in finance cost was due to repayment of higher cost liabilities in the trailing quarter and also due to favorable exchange rate movements. The finance cost of trailing quarter was higher due to merger of RHUSA during the trailing quarter and included the cumulative finance costs of 1Q FY21 as well as 2Q FY21.

• Profit after tax (pre-exceptional) grew sharply by 41.6% Q-o-Q at ₹ 15,015 crore ($ 2.1 billion) as against ₹ 10,602 crore in the trailing quarter.

• Outstanding debt as on 31st December, 2020 was ` 257,413 crore ($ 35.2 billion). Cash and cash equivalents as on 31st December, 2020 were at ` 220,524 crore ($ 30.2 billion). Balance capital commitment receivables (on account of Rights issue) are in excess of quarter-end Net Debt levels.

• RIL retained its domestic credit ratings of “CRISIL AAA/Stable” from CRISIL and “IND AAA/Stable” from India Ratings and an investment grade rating for its international debt from Moody’s as “Baa2” and “BBB+” from S&P.