Reliance Industries Posts 10.9% Rise in Q3 Profit; EBITDA Up 16.7%

Reliance Industries Ltd (RIL) beat analysts’ estimates to report a 10.9 percent increase in net profit to Rs 19,641 crore for the fiscal third quarter from a year earlier.

Consolidated earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 16.7% to Rs 44,678 crore from a year earlier, with growth across all key operating businesses.

Gross revenue from operations of India’s most valuable company rose 3.2% to Rs 2.48 lakh crore in the December quarter from Rs 2.41 lakh crore in the year-ago period.

According to a Moneycontrol survey of eight brokerages, analysts expected net profit to be at Rs 16,625 crore for the December quarter. EBITDA was estimated to rise to Rs 40,232.70 crore.

“Reliance has delivered yet another quarter of robust operating and financial performance, thanks to the exceptional efforts put in by teams across its businesses,” chairman Mukesh Ambani said in a statement on January 19.

The company’s retail business EBITDA surged 31% from a year earlier to Rs 6,271 crore, with strong growth across grocery, fashion and consumer electronics products.

The company’s oil-to-chemicals (02C) business rose to Rs 14,064 crore in the December quarter from Rs 13,926 crore in the year earlier. The performance came despite a planned shutdown of key units and a challenging margin environment. RIL runs the world’s largest refining complex in Jamnagar, with a total capacity of about 1.4 million barrels per day.

If all the major O2C units were available through the quarter, O2C segment EBITDA would have been 17% higher from a year earlier. This would have also resulted in consolidated EBITDA growth of 22.5% from a year earlier and net profit growth of 19.5%.

The oil and gas business reported a record quarterly EBIDTA of Rs 5,804 crore, a 46 percent increase from a year earlier.

The company’s capital expenditure of Rs 30,102 crore was comfortably covered by a cash profit of Rs 35,810 crore.

“The Oil & Gas segment posted its highest ever quarterly EBITDA. I am happy to note that KG D6 is now contributing 30% of India’s gas production, fueling its transition towards a greener and cleaner tomorrow,” Ambani said.

(This is a developing story. Please check back for more.)