RIL Q3 Earnings: RIL Q3 Results: 5 key takeaways for disappointed Dalal Street investors – The Economic Times

Clipped from: https://economictimes.indiatimes.com/markets/stocks/news/ril-q3-results-5-key-takeaways-for-disappointed-dalal-street-investors/articleshow/97180332.cms

Synopsis

The overall weakness in the market and caution ahead of earnings pulled down the stock in trade on Friday. The stock ended 1.2% down at Rs 2,442.65 on the National Stock Exchange.

Diversified conglomerate

Reliance Industries Ltd

NSE -1.19 % (

RIL

NSE -1.19 %) disappointed Dalal Street by reporting a lower-than-expected net profit for the quarter ended December, despite reporting strong growth in the topline.

The overall weakness in the market and caution ahead of earnings pulled down the stock in trade on Friday. The stock ended 1.2% down at Rs 2,442.65 on the National Stock Exchange.

The company reported a 15% year-on-year (YoY) fall in consolidated net profit to Rs 15,792 crore, even as revenue increased 15.3% to Rs 2.20 lakh crore. Sequentially, however, the bottomline rose by 15.6%, while the topline fell 5.3%.

Following are the major takeaways from earnings:

O2C Business: Revenue of the business saw double-digit 10% YoY growth, on account of higher price realisation as crude oil prices went up by 11%. The growth would have been higher if not for the lower throughput with planned maintenance and Inspection activity turnaround during the quarter.

Exports from the segment increased sharply by 21% YoY to Rs 78,331 crore, and made for more than 54% of the total segment revenue. The increase in exports was led by higher price realisations despite lower downstream product volumes.

Telecom: Jio Platforms reported highest-ever revenue of Rs 29,195 crore, and operating profit of Rs 12,519 crore. Operating margin increased by 170 bps due to increased ARPU and benefit from lower spectrum usage charges. ARPU improved to Rs 178.2 from Rs 177.2 in the second quarter.

As on December 31, the total customer base of

Reliance

NSE -1.19 % Jio was 432.9 million, compared with 427.6 million a quarter ago. But net addition of subscribers was lower than expected at 5.3 million.

Retail: Strong growth in revenue was led by a well-rounded growth across all baskets and channels. The operating profit increased, with a 70 basis points improvement in margin, driven by favourable mix, operating leverage and efficiencies.

The store footfalls in the quarter were at a record high of 201 million, compared with 180 million in the September quarter.

Fundraising: The company announced plans to raise Rs 20,000 crore by issuing non-convertible debentures (NCDs) through a private placement basis.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s