Reliance Q3 Results 2023 – The oil-retail-telecom conglomerate has reported a bigger-than-expected drop of 15% in quarterly profit to Rs 15,792 crore.

Reliance Q3 Results 2023: Reliance Industries Ltd. reported a 15% decrease in third-quarter net profit to Rs 15,792 crore on Friday, according to a corporate filing with the stock exchange. The increase in overall expenses, which were reported at Rs 200,733 crore for the reporting quarter as opposed to Rs 173,060 incurred in the comparable period, by 16% was the cause of the reduction in profit after tax (PAT).

Reliance Q3 Results 2023 Between October and December 2022, net profit was Rs 15,792 crore, compared to Rs 18,549 crore the previous year.

From October to December 2021, operating revenue increased to Rs 220,592 crore from Rs 191,271 crore.

Results were released following market hours. On the NSE, Reliance shares closed at Rs 2,443 today, down Rs 29.05 or 1.18 % from Thursday’s previous closing price.

The largest telecom company in the country, Reliance Jio, announced a 28.3% increase in third-quarter net profit to Rs 4,638 crore on Friday.

In October through December 2021, the company reported a net profit of Rs 3,615 crore, according to a stock exchange filing.

From October to December 2022, revenue increased to Rs 22,993 crore from Rs 19,347 crore the previous year.

The board has also approved the issuance of non-convertible debentures to raise Rs 20,000 crore.

Earnings before interest, taxes, depreciation, and amortization (EBITDA), the operating profit measure used by RIL, increased 13.5% year over year to Rs 38,460 crore. 

However, sequentially, the bottom line increased by 15.6% while the top line decreased by 5.3%.

The primary oil-to-chemicals (O2C) business’s combined revenue increased 10% year over year to Rs 1.44 lakh crore. More than 65% of RIL’s consolidated top line for the quarter came from this segment.

Reliance Q3 Results 2023 The combined net profit for Reliance Retail Ventures increased by 6.2% YoY to Rs 2,400 crore. To Rs 67,623 crore, revenue climbed 17% year over year. The leading retailer in retail recorded a record quarterly revenue. Operating profit reached a record high for the company and increased by 25% year over year to Rs 4,773 crore. Jio Platforms’ combined net profit increased by 28.6% YoY to Rs 4,881 crore, while sales increased by 21% to Rs 24,892 crore.

Mukesh D. Ambani, chairman and managing director of the company, was quoted in the announcement as stating, “Our strong financial sheet and healthy cash flows remain the cornerstone of our commitment to growing existing businesses as well as investing in new possibilities.”

O2C performance

Because of improved price realisation due to the 11% increase in crude oil prices, the company’s revenue increased by a double-digit 10% YoY.

If not for the lower throughput caused by planned maintenance and inspection activity conducted during the quarter, the growth would have been larger, according to RIL.

18.8 million metric tons were processed overall during the quarter, a 4.6% decrease from the corresponding period last year.

Over 54% of the segment’s whole revenue came from exports, which saw a strong increase of 21% YoY to Rs 78,331 crore.

Despite reduced downstream product volumes, greater price realisations drove the increase in exports.

The improvement in middle distillate cracks was somewhat offset by weak margins across polymer, polyester chain, and light distillate products, resulting in a modest 3% increase in operating profit to Rs 13,926 crore, according to RIL.

With strong demand, limited supply, and high natural gas costs in Europe, the fundamentals of the intermediate distillate product in the O2C industry remain strong, according to Ambani.

Due to limited stocks, seasonal demand, and the looming loss of Russian oil products, the company anticipates that middle distillate cracks will continue to hold firm. With the impending wedding season on the domestic market and a change in China’s “zero-carbon” policy, polyester consumption is anticipated to increase.

Telecom/digital scorecard

Revenue at Jio Platforms increased by 21% YoY to Rs 29,195 crore. The sales for this quarter were the biggest ever. A record high operating profit of Rs 12,519 crore was also achieved. Annual operating profit increased by 25%.

The average revenue per user (ARPU) and subscriber base for the connectivity business both steadily increased, which contributed to the expansion in the top line. Operating success was driven by strong revenue growth and margin expansion.

According to RIL, operating margin grew by 170 bps as a result of higher ARPU and the reduction in spectrum usage fees. ARPU increased to Rs 178.2 in the third quarter from Rs 177.2 in the second.

Reliance Jio had 432.9 million overall customers as of December 31 compared to 427.6 million a quarter earlier.

Even though gross additions remained strong at 34.2 million, the net addition of subscribers was lower than anticipated at 5.3 million.

According to Akash M. Ambani, chairman of Reliance Jio Infocomm, Jio True 5G is already accessible in 134 cities, three months after its launch, and will be available throughout India by December 2023.

Jio will also connect over 100 million homes with JioFiber and JioAirFiber, providing unmatched digital experiences.

Retail Show

The segment’s strong revenue growth was driven by balanced growth across all baskets and channels.

A favorable mix, operating leverage, and efficiency improvements led to an increase in operating profit with a margin improvement of 70 basis points.

The company had 17,225 stores as of December 31 as compared to 16,617 a quarter earlier. Store visits reached a new high of 201 million throughout the quarter, up from 180 million during the September quarter.

A 45% YoY revenue gain in the consumer electronics sector, excluding devices, was recorded during the quarter due to increased foot traffic and bill values.

The company experienced double-digit growth in all phone, TV, and appliance categories.

Festivals and the wedding season were the main drivers of the fashion and lifestyle vertical’s 13% YoY sales growth. The grocery sector experienced strong sales growth of 65% YoY, driven by broad-based growth in the packaged food, fruits & vegetables, general items, and staples categories.

The pharmaceutical industry saw dramatic 93% YoY revenue growth, driven by traction across all channels.

Oil & Gas

Revenue for the segment jumped 75% year over year to Rs 4,474 crore, and operating profit rose 91% to Rs 3,880 crore.

Higher output and better gas price realisation were the main drivers of revenue growth.

With the government hiking the gas price ceiling to $12.46 per MMBtu, the average gas price realised for the KG-D6 block increased to $11.3 from $6.1 a year earlier.

According to RIL, geopolitical unpredictability and limited supply are likely to keep gas prices stable in the foreseeable future. Operating profit growth will be supported in the short term by increased production and higher prices.

Despite reporting strong topline growth, the diversified conglomerate Reliance Industries Ltd. NSE -1.19% (RIL NSE -1.19%) disappointed Dalal Street by announcing a lower-than-expected net profit for the quarter ended in December.

The stock declined in price on Friday as a result of the market’s general sluggishness and investor concern ahead of earnings. The stock’s NSE closing price was 2.442.65, down 1.2%.

Reliance Q3 Results 2023: K V Kamath appointed as independent director, firm to raise Rs 20,000 cr via NCDs-

The Mukesh Ambani-led Reliance Industries announced on Friday the appointment of K. V. Kamath, a seasoned banker, as an independent director for a period of five years.

Accordingly, his appointment as an independent director of the company has taken effect as of January 20, 2023, for a term of 5 (five) consecutive years up to January 19, 2028, according to a statement from Reliance Industries. “K. V. Kamath has assumed office as an Independent Director of the Company today, i.e., January 20, 2023,” the statement read.

It should be mentioned that Jio Financial Services, which will be demerged as disclosed by the firm during its September quarter results, will be led by Kamath starting in November 2022, according to RIL.

The oil-to-telecom conglomerate, which has expanded into retail, telecom, and most recently green energy over the years, also disclosed its intention to fund Rs 20,000 crore by issuing non-convertible debentures (NCDs) on a private placement basis.

RIL stated in a stock exchange filing that the company’s board of directors approved, among other things, raising money through the issuance of non-convertible debentures (NCDs) up to Rs 20,000 crore, in one or more tranches or series, on a private placement basis, at its meeting held today, January 20, 2023.

Reliance claimed that margin pressure on its downstream chemical products was brought on by an excess of supply and weak regional demand.

The business said that with the commissioning of its deepwater MJ gas condensate well in the Bay of Bengal KG-D6 block, it was on target to achieve production of 30 million standard cubic metres of gas per day during the following fiscal year.

FAQs-

1. What is the main business of RIL?

Their business activities include the exploration and production of oil and gas as well as the production of synthetic textiles and fabrics, plastics, chemicals, petroleum products, polyester goods, and polyester intermediates.

2. What is Reliance’s PE value?

The price-to-earnings ratio (TTM) for Reliance Industries is currently 24.5603 based on the company’s most recent financial reports and stock price.

3. Does RIL offer bonuses?

The record date indicated for the purpose of establishing shareholders’ eligibility for the bonus share issue was December 22, 2022, and the company’s shares became ex-bonus for its bonus share at a 1:1 ratio on December 21. The corporation has just announced its first-ever bonus share issuance.

4. What is the target of Reliance?

According to fundamental analysts, the stock could increase by up to 20% in 2023. Levels around Rs 2,715-2,970, according to a technical analyst, are probable in the upcoming weeks. In the future, the consumer business of RIL would be the growth driver, according to ICICI Direct’s research report.