Mukesh Ambani-backed
Reliance Industries (RIL) will be in focus on Monday, after the company reported a consolidated net profit of Rs10,602cr in the quarter ending September 2020 (Q2FY21) period, compared to a net profit of Rs11,352cr a year ago same period and Rs13,248cr of the preceding quarter.
RIL's consolidated revenue from operations was at Rs116,195cr in Q2FY21, lower from Rs153,384cr a year ago same quarter, however, higher from Rs91,238cr of the previous quarter.
Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries Limited said, “We delivered strong overall operational and financial performance compared to the previous quarter with recovery in petrochemicals and retail segment and sustained
growth in Digital Services business."
He added, "Domestic demand has sharply recovered across our O2C business and is now near the pre-Covid level for most products. Retail business activity has normalised with strong growth in key consumption baskets as lockdowns ease across the country. With large capital raise in the last six months across Jio and Retail business, we have welcomed several strategic and financial investors into Reliance family."
Here's how RIL's segment-wise performance stood in Q2FY21 as per the filing:
Reliance Retail:
Revenue from operations for 2Q FY21 increased by 29.7% Q-o-Q to Rs36,566cr and at the same level as the last year despite restricted store operations and lower footfalls. While EBITDA for 2Q FY21 increased by 85.9% Q-o-Q to Rs2,006cr. EBITDA margin (on revenue from operations) recovered by 170 bps to 5.5% in 2Q FY21 against 3.8% in 1Q FY21.
RIL said, Overall, Reliance Retail’s 2Q FY21 performance reflects resilience and customer preferences. The business is focused on restoring the momentum to pre-pandemic levels as operating curbs and limitations are relaxed."
Reliance Jio:
RJio's standalone net profit nearly trebled to Rs2,844cr for the quarter ended September 2020 (Q2FY21) period. The company had posted a net profit of Rs990cr a year ago same period.
Standalone revenue from operations stood at Rs17,481cr in the quarter under review, increasing from Rs13,130cr in the corresponding period of the previous year.
During the quarter, RJIo's ARPU during the quarter of Rs145.0 per subscriber per month as against Rs140.3 per subscriber per month in the trailing quarter.
O2C - Petrochemicals:
Segment Revenue increased by 17.8% Q-o-Q to Rs29,665cr with higher prices across the product portfolio and higher volumes. PP, PE and PVC prices strengthened by 13%, 17% and 25% Q-o-Q respectively due to tight supply with regional turnarounds and improvement in demand. With an increase in feedstock prices, PX prices firmed 10% Q-o-Q while PTA and MEG prices increased by 4% and 10% respectively.
Segment EBITDA for 2Q FY21 increased by 34.6% Q-o-Q to Rs5,964cr primarily on account of higher production volume and higher volume placement in the domestic market. EBITDA margins also improved sequentially by 250 bps with firm cracker margins, effective product and sales mix and superior ethane cracking economics.
O2C - Refining & Marketing:
Global oil demand for 2QFY21 was at 93.6 mb/d as per IEA, Q-o-Q increase of 10.6 mb/d with the easing of lockdowns across economies. Indian oil product demand also improved by 11.3% QoQ, led by HSD (5.3%), MS (41.1%) and ATF (107.4%).
Segment Revenues for 2Q FY21 increased by 33.3% Q-o-Q to Rs62,154cr primarily due to higher crude oil price. Dubai crude price averaged at $42.9/bbl during the quarter v/s $30.5/bbl in 1QFY21, up 40.5% Q-o-Q.
Refineries gross revenue margin (GRM) was at $5.7 per barrel compared to $6.3 per barrel of the previous quarter.
Oil & Gas business:
Segment Revenues for 2Q FY21 declined by 29.8% Q-o-Q to Rs355cr primarily due to lower price realisation and decline in production.
For July’2020- Sept’2020 period, the overall price realization was at $ 1.82/Mcfe, up 15%Q-o-Q and production were 3% lower at 24.5 Bcfe.
Media Business:
Segment Revenues for 2Q FY21 rose by 31.5% Q-o-Q as COVID-linked impact on ad-revenues receded over the quarter.
EBITDA for 2Q FY21 was at Rs166cr. Operating margins continued to improve, as Broadcasting margins rose sharply, and Digital News business swung into profitability.
Ambani said, "We continue to pursue growth initiatives in each of our businesses with a focus on the India opportunity."