NEW DELHI: India’s largest listed company - Reliance Industries (RIL) on Friday reported a 15% year-on-year (YoY) drop in net profit for the quarter ending December (Q3FY23). RIL consolidated net profit (attributable to the owners of the company) came down to Rs 15,792 crore in Q3 compared to Rs 18,549 crore reported in the year-ago period (Q3FY22).
Market analysts had predicted RIL will witness a drop in profit due to volatility in global crude prices during the October-December period. In addition, RIL saw a rise in its interest and depreciation expenses. Its gross revenue in Q3FY23 grew 15% YoY to Rs 240,963 crore.
The Group’s mainstay O2C (oil to chemical) business reported revenue growth of 10% to Rs 144,630 crore and EBITDA growth of 3% to Rs 13,926 crore. RIL said growth in EBITDA was supported by strength in middle distillate cracks but the same was partially offset by weak margins across polymer, polyester chain and light distillates products.
Continued windfall tax on transportation fuels impacted earnings by Rs 1,898 crore. Digital arm Reliance Jio posted a 28.6% rise in net profit to Rs 4,881 crore, while revenue grew 21% to Rs 29,195 crore. Net subscriber addition was 53 lakh in the quarter to 43.29 crore, while average revenue per user (APRU) improved quarter-on-quarter to Rs 178.2 from Rs 177.2. Retail arm Reliance Retail saw a 6% rise in net profit to Rs 2,400 crore, while gross revenue grew 175 to Rs 67,623 crore.
RIL plans to raise Rs 20,000 crore issuing non-convertible debentures (NCDs) via private placement basis to fuel its expansion plans across businesses. The outstanding debt of RIL was Rs 303,530 crore, whereas cash and cash equivalents as of December 31 were at Rs 193,282 crore.
Mukesh Ambani, Chairman and MD of RIL, said, “We are making rapid progress towards implementation of new energy Giga factories at Jamnagar as part of our commitment to revolutionising green energy sector. Our strong balance sheet and robust cash flows remain the cornerstone of our commitment in growing existing businesses as well as investing in new opportunities.”
