Reliance reports 12.5% rise in net profit in Q3

The leading Ambani empire Reliance Industries reported a 12.5% increase in their consolidated net profit at Rs 13,101 crore for the quarter that concluded on 31st December 2020 compared to Rs 11,640 crore in the previous year.

The conglomerate that ranges from oil to telecom registered a decline in revenue in its primary oil-to-chemical business. Consolidated revenue from operations fell by 22% to Rs 1.23 lakh crore against Rs 1.57 lakh crore in the year-ago period.

The company said, “The outbreak of Coronavirus pandemic globally and in India is causing significant disturbance and slowdown of economic activity. The Group’s operations and revenue during the period were impacted due to COVID-19.”

They continued to say, “Outstanding debt as on 31st December, 2020 was Rs 2,57,413 crore ($35.2 billion). Cash and cash equivalents as on 31st December, 2020 were at Rs 2,20,542 crore ($30.2 billion).

Mukesh Ambani, Chairman and Managing Director of RIL, said, “At a time when the Indian economy is poised for a confident recovery, we at Reliance are humbled that we have been able to contribute to it with our Company’s impressive performance in the third quarter of FY21.”

“We have delivered strong operational results during the quarter with a robust revival in O2C and Retail segments, and a steady growth in our Digital Services business,” added Ambani.

In a stock exchange filing, RIL was quoted, “With effect from this quarter, the Company will disclose Oil to Chemicals (O2C) as a separate business segment.”

Ambani said, “Our Oil-to-Chemicals (O2C) business has formally reorganized its reporting segments to reflect our new strategy and management matrix for this enterprise. The reorganized structure will facilitate holistic and agile decision making and enable us to pursue attractive new opportunities for growth, with strategic partnerships with the best and the biggest in this business globally. The O2C platform will increasingly move further downstream and become closer to customers. It will create planet friendly and affordable energy and materials solutions to meet the growing needs of every sector of the Indian economy.”

R Cluster field is India’s first ultra-deepwater gas field in block KGD6 off the east cost of India. Production and gas supplies have began work from 18th December, 2020, according to RIL.

R Cluster is the first of three projects to come into production. It is the deepest offshore gas field in Asia with the location at a water depth of great than 2,000 meters. The company said, “Current production in line with expectation and being ramped-up. Expected to reach plateau production of about 12.0 mmscmd H2CY21.”

On Friday 22nd January, 2021, the company’s scrip on NSE closed 2.45% lower at Rs 2,047.95.

As for Jio and its platforms, it recorded a 15.5% quarter-on-quarter jump in net profit to Rs 3,489 crore for the period October-December 2020. This information was given by its parent firm, Reliance Industries Limited on 22nd January, 2021. Jio which provides digital and telecom services, reported a net profit of Rs 3,020 crore in the previous quarter.

For the October-December 2020 period, the revenue of the company was Rs 22,858 crore.

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