The oil-to-telecom conglomerate reported consolidated revenues of Rs 1.2 lakh crore, up 21.10 per cent year-on-year.
The weak topline performance of the company was attributable to the continued struggles of the refining business and retail business of the company due to the Covid-19 pandemic.
Analysts had expected the city-based company to report a consolidated net profit of Rs. 11,420 crore on consolidated revenues of Rs 1.27 lakh crore.
Shares of Reliance Industries ended 2.4 per cent lower at Rs. 2,049.60 on the National Stock Exchange earlier today.
“At a time when the Indian economy is poised for a confident recovery, we at Reliance are humbled that we have been able to contribute to it with our company’s impressive performance in the third quarter of FY21,” chairman and managing director Mukesh Ambani said.
“We have delivered strong operational results during the quarter with a robust revival in O2C and retail segments, and a steady growth in our digital services business. I am proud that Reliance has employed 50,000 more people since March 2020,” he added.
RIL said that it created more than 50,000 new jobs during the pandemic-impacted period of April–December in its consumer businesses and last mile delivery.
The company’s consolidated operating profit in the quarter stood at Rs 26,094 crore, up 12 per cent sequentially, while its finance costs sank 29 per cent on quarter to Rs. 4,326 crore.
Oil-to-chemical sees sequential recovery
The revenues of the oil-to-chemical business, which contribute nearly two-thirds to the company’s topline, fell to Rs 83,838 crore in the reported quarter from Rs 1.19 lakh crore, a year ago.
RIL’s refining business has suffered due to the impact of the Covid-19 pandemic on demand for transportation fuel, which occupies the maximum pace in the company’s refining slate.
However, sequentially the business saw its revenues rise 10 per cent, helped by the improvement in demand for transportation fuels after the unlocking of the economy. The segment’s operating profit also rose 10.3 per cent on quarter-on-quarter basis, while margins remained flat.
Digital services lead growth
The revenues of the digital services operations rose to Rs 23,678 crore from Rs 17,849 crore a year ago, suggesting that the telecom business continued to lead growth for the company.
Reliance Jio’s revenues rose nearly 6 per cent sequentially to Rs 18,492 crore due to increased data consumption on its network given that majority of the formal sector is still working from home.
Retail struggles, but profitability strong
Sales of the organised retail business of the company under Reliance Retail Venture fell nearly 10 per cent sequentially to Rs 33,018 crore in the quarter, reflecting the weakness in the retail operations due to localised restrictions.
However, the operating performance remained firm as operating profit rose 53.9 per cent sequentially to Rs 3,087 crore, while margins expanded 380 basis points on quarter to 9.3 per cent.
Overall, footfalls remained at similar levels to last quarter but, still lower than pre-Covid levels, the company said.
Oil & Gas revenues surge
Sales in the oil and gas business of RIL rose 21.4 per cent on quarter to Rs 431 crore with the segment reporting profit at an operating level of Rs 4 crore.
Gas demand has recovered to pre-Covid levels as the company pursued the second round of bidding for gas sales.
Media operations report strong sales
The media segments of RIL reported a 34 per cent sequential rise in revenues to Rs 1,422 crore in the reporting quarter. Segment’s operating profit grew 95.2 per cent on quarter to Rs 324 crore.
Festive season buoyancy and sustained elevation in media consumption largely eliminated the Covid-linked drag on advertisement spending, RIL said.