Reliance Industries Ltd (RIL) more than doubled its consolidated net profit in the March quarter, from a year ago to 14,995 crores, despite revenue rising just 14 percent to 1.72 lakh crore. Consolidated net profit for 2020-21 was 53,739 crores, up 35 percent from 39,880 crore the previous year, though consolidated revenue dropped from 659,997 crore to 539,238 crores.
According to the company, Lower volumes and realisation across main items in the oil-to-chemicals, or O2C, segment contributed to the revenue drop from a year ago. Due to the pandemic, the retail segment also posted lower sales. Higher revenue from the digital services market, however, was partly offset by higher Arpu and continued subscriber momentum (average revenue per user).
“Our direct-to-consumer and retail markets have bounced back nicely, while our digital services industry has maintained its steady growth. Consistently high utilisation rates across sites, as well as an improvement in downstream product deltas and transportation fuel margins, aided O2C earnings growth,” Mukesh Ambani, chairman and managing director of RIL, said.
RIL’s consumer companies, according to Ambani, have proven to be a digital and physical lifeline for the country during these trying times. Millions of Indians were able to work, study, and even access healthcare from the comfort of their own homes, thanks to Jio’s high-speed broadband services.
“Reliance Retail ensured that critical goods and services were delivered to consumers’ homes in a safe and timely manner. Despite disrupting people’s lives, Covid has generated nearly 75,000 jobs while ensuring the health and safety of our employees and their families,” Ambani said.
RIL’s operating profit, on the other hand, fell by 4.6 percent to 97,580 crores from 1.02 lakh crore the previous year, owing primarily to lower contribution from O2C companies, which were impacted by pandemic-related demand destruction in the first half of last fiscal, according to the company. RIL shares gained 1.42 percent to 1,994.45 on the BSE ahead of the company’s earnings announcement, with a dividend of $7 per share announced. According to the company, cash and cash equivalents as of March 31 totalled 2.54 lakh crore, which was higher than the outstanding debt of 2.52 lakh crore.
Meanwhile, Jio Platforms Ltd. posted a 47 percent increase in consolidated net profit to 3,508 crores in the March quarter from 2,379 crore the previous year. Jio’s consolidated revenue was 18,278 crores, up 18.9 percent from the previous year’s figure of 15,373 crore.
“Jio has a user base of 426 million users and is committed to creating digital experiences for all, including individuals, families, and businesses all over the world not just its current customers. Jio will continue to aim to make India a premier digital society with its path-defining collaborations over the last couple of years,” Ambani said.
The transition from interconnect use charges (IUC) to arpu was 138.2 in the fourth quarter, with the sequential decrease led by fewer days during the quarter. The operator’s total revenue divided by the number of users or links on its network equals Arpu. Jio had an Arpu of 151 in October-December, up from 145 the previous quarter. As of March 31, Jio had added 37.9 million subscribers, taking its total customer base to 426.2 million. In Q4 FY21, it produced a consolidated gross revenue of 1.58 lakh crore in the retail sector.
