Home Current Affairs RIL Q3 results 2021: An improved rise

RIL Q3 results 2021: An improved rise

With economic crisis going on, Reliance Industries have raised their profit in the quarter. As the demand for its petrochemicals have increased and its digital services have pushed the sales, the RIL Q3 results 2021 have seen a good rise

With economic crisis going on, Reliance Industries have raised their profit in the quarter. As the demand for its petrochemicals have increased and its digital services have pushed the sales, the RIL Q3 results 2021 have seen a good rise.

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RIL Q3 results 2021

According to its exchange filing, the Mukesh Ambani-led conglomerate’s profit rose 12.6 per cent Year-on-Year to Rs 13,101 crore in the quarter that ended in December. Besides the digital services and petchem business, fall in total expenditure and reduced tax expenses also aided quarterly profit.

Revenue fell 23.1 per cent over last year to Rs 1.18 lakh crore — lower than the estimated Rs 1.2 lakh crore. Operating profit fell 5.2 per cent to Rs 21,566 crore.

The margin widened to 18.3 per cent from 14.8 per cent earlier. Fuel demand all over the world remained in control, hurting refining margins of India’s largest company by market value. These crack margins for key fuels like gasoline and diesel remained floored in the third quarter. Singapore gross refining margins recovered from $0.1 per barrel in the second quarter to $1.2 per barrel in the third, its way below pre-COVID levels. However, the company stopped providing the gross refining margin from the third quarter as the refining and petrochemicals business segments have been reorganised into oil-to-chemicals business.

Srikanth Venkatachari, the joint chief financial officer at Reliance Industries, said: “O2C reorganisation enables reducing feedstock costs and improved product realisation.”

Petrochemicals assisted the earnings as prices of these products rose on higher demand amid weaker supply. And the compounds used to make plastics, resins and drugs rose in the RIL Q3 results 2021, as several countries in Asia and the Middle East resumed work after emerging from pandemic-induced lockdowns.

Demand for polymers rose 8 per cent and for polyester surged 39 per cent, taking it above the pre-COVID level, said Venkatachari. Oil demand rose 8 per cent to nearly 99 per cent of the pre-pandemic levels, while gasoline and diesel demand crossed it.

Shale Gas impairment:

The company recognised the wreckage of Rs 15,691 crore on its shale gas investments due to the market environment, reduction in activity by operator and recent operational performance. It also further recognised the deferred tax assets worth Rs 15,570 crore because of the difference between the book value and tax base of the shale gas operations. The net impact of this is recognised as an extraordinary item of Rs 121 crore.

Also Read: RRB NTPC Exam 2021, expected cutoffs and exam difficulty level

Jio

Jio Platforms Reliance discontinued providing results for Reliance Jio Infocomm Ltd. Instead, it started disclosing earnings of Jio. This business saw profit rise 15.5 per cent, helped by Jio’s stable market share and 4.1 per cent increase in average revenue per user.

Reliance Retail Earnings before interest and taxes of Reliance Retail Ltd. rose 8.9 per cent year-on-year and also increased constantly. This growth helped by higher sales across categories. It added more stores and as people continue to order groceries from its online platform, JioMart. The topline was lower as the petroleum retail business turned into the joint venture with BP Plc.

Dinesh Thapar, chief financial officer of the unit, said: “Reliance Retail saw 96% (52% fully operational) of its stores operational compared to 85% (43% fully operational) in second quarter in the post-earnings call.” Footfalls overall were at 75% of pre-COVID level. Reliance Retail Ebitda (earnings before interest taxes, depreciation and amortization) stood at Rs 3,087 crore at the end of third quarter. The operating income was driven by lifestyle and apparel businesses, which doubled over the second quarter. Reliance Industries shares closed 2.45 per cent lower before the results were announced compared with a 1.5 per cent decline in the benchmark Nifty 50.

Pallavi Mishra
I am Pallavi Mishra. I’m an economics student who’s a poet by heart. A poet who has adequate analytical skills. I am aspiring to work with grooved and prestigious platforms which will polish my skills. I would be glad if my orator skills will help any organization.

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