Reliance Q3 results are out now, read here! Reliance Industries has reported a bigger-than-expected drop in quarterly profit as the company took a hit from the government’s windfall tax on fuel exports. The taxes were levied on exports of gasoline, diesel and aviation fuels midway last year, halting the momentum in Reliance’s O2C business built on cheap Russian crude and high demand for transportation fuels.
Reliance Q3 results
Mukesh Ambani’s Reliance Industries Ltd witnessed a double-digit growth in consolidated revenue for the December quarter on the back of improvement in Oil-to-chemicals (O2C) and the exploration & production (E&P) businesses. Reliance Retail and Reliance Jio – both market leaders in their respective sectors – continue to propel the parent’s profit. RIL’s consolidated EBITDA came in at ₹38,460 crore, up 13.5% on-year.
The oil-retail-telecom conglomerate’s revenue from operations rose 15% to ₹2.20 lakh crore for the reporting quarter. It was at ₹1.91 lakh crore in the same period last year.
Downstream chemical products experienced margin pressure
Downstream chemical products experienced margin pressure due to excess supply and relatively weak regional demand, Reliance said in a statement.
Reliance Q3 results: Retail
With a workforce base of more than 418,000 job creation and reskilling of people remained a cornerstone of Reliance Retail’s mission of inclusive growth. The business expanded its physical store network with 789 new store openings totaling to an area of 6 million Sq. ft.
Reliance Retail has reported a 6.2% jump in consolidated net profit for the December quarter to ₹2,400 crore. The Mukesh Ambani-led retail chain’s gross quarterly revenue for the third quarter was up by 17.1% to ₹67,634 crore, from ₹57,717 core in the corresponding quarter last fiscal. Reliance Retail’s posted a EBITDA which shot up by 24.7% YoY to ₹4,786 crore.
Within three months of launch, Jio True5G is available across 134 cities and would be available across the country by December this year. In addition, Jio will connect over 100 million premises with JioFiber and JioAirFiber offering unparalleled digital experiences.
Ambani said, “Jio is undertaking the most ambitious and fastest ever 5G rollout plan for any country of our size. We will also empower small merchants and businesses with cutting-edge, plug-and-play solutions delivered from the cloud.”
Net subscriber addition was 5.3 million as gross adds remained strong at 34.2 million in Q3 FY23. ARPU increased sequentially due to better subscriber mix.
In O2C business, middle distillate product fundamentals remain strong with firm demand, constrained supply, high natural gas prices in Europe. Downstream chemical products witnessed margin pressure with excess supply and relatively weak regional demand. Our focus remains on operating safely and reliably producing vital fuel and materials for consumers, Ambani said.
“Jio delivered record revenues and EBITDA driven by strong momentum in customer growth and data consumption. This quarter we launched True 5G services. It is now available in 134 cities and towns in India, enhancing customer experience while enabling next generation services. It is heartening that customers recognise the great value and world class connectivity that Jio offers on its 4G and 5G networks.”
On retail, he said: “Retail business had another quarter of strong progress with more Indians choosing to shop at Reliance Retail stores. We are focused on delivering superior products and value to customers while improving profitability.
Our teams across businesses have done an excellent job in delivering strong operating performance through a challenging environment. All segments contributed to the robust growth in consolidated EBITDA on Y-o-Y basis.”
Watch this video by CA Nitin Kaushik to Quarterly Results in detail.
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