Reliance’s Net Profit Up 41.5% In The Third Quarter

Reliance’s net profit up 41.5% in the third quarter.

Reliance Industries on Friday said its net profit grew 41.5 percent in the third quarter of the current financial year, with oil, retail, and telecom businesses performing well during this period.

The company told the stock exchange that its net profit stood at Rs 18,549 crore in the October-December quarter last year, as against Rs 13,101 crore in the same period last year.

While O2C and E&P business saw strong growth, Jio and retail business also posted excellent quarterly results. This is the best result of Jio and Retail to date.

Expressing happiness over the company’s results, Mukesh Ambani, Chairman, Reliance Industries said, “Reliance has performed well in the third quarter of FY 2022.”

We have delivered record operating results with strong contributions from all our businesses.

Retail business activity has returned to normal with strong growth in consumption on account of the festive season and easing of the lockdown.

“Our digital services business has also registered massive, sustainable, and profitable growth.”

Reliance’s O2C business, which was traditionally considered the backbone of the company’s profits, has shown significant improvement.

The EBITDA of the O2C business grew by 38.7% (YoY) to Rs 13,530 crore. The E&P business has also registered the highest EBITDA of Rs 2,033 crore on the back of better pricing and improved production.

Production during the December ’21 quarter stood at 53.3 billion cubic feet, while the average KGD6 natural gas price was up 74% from the year-ago period.

The digital services business under Jio Platforms Ltd also performed strongly. Its EBITDA stood at 10,008 crores, up 18.1% (YoY) during the December ’21 quarter.

This increase in EBITDA was driven by continued growth in subscriber base and improvement in revenue per consumer.

Jio’s customer base stood at 42.10 million at the end of the third quarter. 10 million customers have been connected to the Jio network in the last 12 months.

Monthly Average Revenue Per User (ARPU) increased to Rs.151.6, due to better customer mix and 20% tariff hike with effect from 1st December 2021.

There has been an increase in data and voice traffic i.e. calling per user per month.

Data consumption on the Jio network increased to 18.4 GB and voice traffic at 901 minutes, showing an increase of 42.6% and 13.2% respectively.

Jio’s fixed-line broadband service JioFiber has also crossed 5 million subscribers and this number is increasing rapidly.

Jio has taken forward the plan of 5G trials in about 1,000 cities across the country. The company is now testing healthcare and industrial automation on its 5G network.

Reliance Retail posted its highest-ever revenue during the December 2021 quarter, as the COVID scare slowly eases.

Customers are also buying heavily at the stores. Retail has also got a boost from digital and new commerce.

Reliance’s net profit: Reliance Retail’s Gross Revenue grew 52.5% to ₹57,714 crores for the December ’21 quarter, while EBITDA jumped 23.8% (YoY).

Reliance Retail opened 837 new stores during the quarter. The total number of Reliance Retail stores now stands at 14,412, spread over 40 million square feet.

Apart from retail infrastructure, the company also strengthened its digital presence. The company recorded a four-fold jump in merchant partners year-on-year on its new commerce platform.

While orders on the digital commerce platform doubled, accounting for 50% of digital commerce orders from tier-2 or smaller cities.