Reliance Industries Ltd’s fiscal third quarter (October-December) net profit rose 12.55 per cent on-year to Rs 13101 crore, beating street estimates
Reliance Industries Ltd’s fiscal third quarter (October-December) net profit rose 12.55 per cent on-year to Rs 13101 crore, beating street estimates. Earlier, in the previous quarter July-September, RIL had posted Rs 10,602 crore of net profit. Reliance Industries’ total income in the third quarter fell 20 per cent on-year to Rs 1.28 lakh crore. A CNBC TV18 poll of analysts had estimated RIL to post a net profit of Rs 11,066 crore on a revenue of Rs 1.26 lakh crore in the third quarter. Today, RIL share price fell 2.30 per cent to end at Rs 2,049.65 apiece on BSE, ahead of the results announcement. So far in January 2021, RIL share price has gained over 3 per cent, However, it is trading below its 52-week-high of Rs 2,368 per share. Analysts at Goldman Sachs find the RIL stock to be at an attractive entry point for investors.
The revenues of the refining and petrochemical business fell to Rs 83,838 crore in the reported quarter from Rs 1.19 lakh crore, a year ago. While the revenues of the digital services operations rose to Rs 23,678 crore from Rs 17,849 crore a year-ago period. During the quarter, Google invested an amount of Rs 33,737 crore into Jio Platforms Ltd for 7.73 per cent stake. This has resulted in a total investment of Rs 1.52 lakh crore by the investors for a stake of 32.88 per cent in the Jio Platforms.
Commenting on the results, Mukesh Ambani, Chairman and Managing Director, Reliance Industries Limited said Reliance Industries Ltd has delivered strong operational results during the quarter with a robust revival in O2C and retail segments, and a steady growth in digital services business. “I am especially pleased that the world is now closing ranks for a strong global action on Climate Change. This gives Reliance the right opportunity to accelerate our own ambitious New Energy and New Materials business wedded to the vision of clean and green development,” he said.
The company in its press release noted that the outbreak of coronavirus (COVID-19) pandemic globally and in India has been causing significant disturbance and slowdown in economic activity. “The Group’s operations and revenue during the period were impacted due to COVID-19,” the conglomerate said. It also highlighted that the production and gas supplies from R Cluster field, India’s first ultra-deepwater gas field in block KGD6 off the east coast of India, have commenced on December 18, 2020.
Mukesh Ambani also added that 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. The company in its press release said that RIL retained its domestic credit ratings of ‘CRISIL AAA/Stable’ from CRISIL and ‘IND AAA/Stable’ from India Ratings and an investment-grade rating for its international debt from Moody’s as ‘Baa2’ and ‘BBB+’ from S&P.