RIL Q1 results: Profit jumps 31% YoY to Rs 13,233 crore on exceptional gains, beats Street estimates

Energy-to-telecom conglomerate Reliance Industries (RIL) on Thursday reported a 30.97 per cent year-on-year (YoY) rise in consolidated net profit at Rs 13,233 crore for the quarter ended June 30, thanks to a major 54 per cent YoY growth in other income at Rs 4,388 crore.

The company also booked a one-time gain of Rs 4,966 crore on an investment by British oil major BP in its fuel marketing business -- Reliance BP Mobility Services.

Analysts in an ETNow poll had projected the profit figure at Rs 7,700 crore.

The company announced its earnings post market hours. Earlier in the day, the stock closed 0.61 per cent higher at Rs 2,108.65, even as the benchmark BSE Sensex slipped 0.88 per cent down to close at 37,736.

The company also managed to bring down total expenditure by about 42 per cent YoY to Rs 87,406 crore from Rs 1,50,858 crore in Q1FY20.

At the same time, consolidated total income fell 42 per cent YoY to Rs 95,626 crore. The company said the group’s operations and revenues for the quarter were impacted by the coronavirus disruption.

Consolidated Ebitda declined 11.80 per cent YoY to Rs 21,585 crore against Rs 24,486 crore reported for the same period last year.

“The severe demand destruction due to global lockdowns impacted our hydrocarbons business, but the flexibility in our operations enabled us to operate at near-normal levels and deliver industry-leading results,” Chairman and MD Mukesh Ambani said in the earnings release.


Reliance Jio profit zooms 182%
Telecom arm Reliance Jio Infocomm reported 182.82 per cent YoY growth in net profit at Rs 2,520 crore for the quarter against Rs 891 crore reported for the same period last year.

Jio’s revenue from operations jumped 33.70 per cent to Rs 16,557 crore while Ebitda grew 55.40 per cent to Rs 7,281 crore. It reported an Arpu of Rs 140.30 for the quarter against Rs 130.6 in March quarter. Its biggest rival Bharti Airtel reported an Arpu of Rs 157 for the quarter against Rs 129 for the year-ago period, thanks to the full impact of the tariff hikes in the previous quarter.


Reliance Retail revenue drops 17%
Reliance Retail, however, witnessed a 17.20 per cent YoY fall in revenue at Rs 31,633 crore. EBITDA declined 47.40 per cent YoY to Rs 1,083 crore.

The company, however, said Reliance Retail’s Ebitda was positive and resilient despite the limitations of the quarter, and cost management initiatives led to savings on fixed cost, which in turn helped cushion the impact of lower profits from lower sales.


Petchem revenue down 33%
Revenues from the petrochemicals business declined 33 per cent YoY to Rs 25,192 crore, primarily due to lower price realisations due to the Covid-19 disruptions in local and regional markets. The segment’s Ebitda declined 49.7 per cent YoY to Rs 4,430 crore.

“Weak domestic demand and higher share of exports impacted margins compared with regional benchmarks. The impact of lower realisation was partially offset by cost optimisation and integration benefits,” RIL said.


Refining revenue shrinks 54%
Revenue from refining and marketing business declined 54.10 per cent YoY to Rs 46,642 crore due to lower crude oil price and lower throughput. As a result, Ebitda slipped 25.80 per cent YoY to Rs 3,818 crore. Brent crude price averaged at $29.2 per barrel during the quarter against $68.8 in 1QFY20, down 57.6 per cent YoY. Gross refining margin (GRM) fell to $6.3 per barrel from $8.1 a year ago.


Oil & gas biz revenue down 45%
The top line from oil and gas business fell 45.2 per cent YoY to Rs 506 crore, primarily due to lower production in domestic business post closure of Panna Mukta and D1D3 fields and lower prices. The segment’s Ebitda for the quarter turned negative at Rs 32 crore thanks to lower volumes and weak realisations. The figure stood at Rs 207 crore in the year-ago quarter.


Media business shrinks
Revenue from the media business declined 35.20 per cent YoY to Rs 807 crore due to the Covid-19 linked clampdown on spending by advertisers, particularly in entertainment segment. As a result, Ebitda declined 41.30 per cent YoY to Rs 27 crore. However, the company said that easing of lockdown towards the end of the quarter was leading to improved advertising traction, especially in the news segment.