Reliance Industries Profit Declines 15% To Rs 15,792 Crore In December Quarter On Government's Special Excise Duty

Mukesh Ambani-backed Reliance Industries net profit declined in December quarter as government's imposition of Special Additional Excise Duty (SAED) on export of transportation fuels adversely impacted the oil-to-telecom conglomerate.

Reliance Industries' net profit in October-December period declined nearly 15 per cent annually to Rs 15,792 crore compared with Rs 18,549 crore during the same period last financial year.

Imposition of additional excise duty on export of transportation fuels resulted in adverse impact of Rs 1,898 crore on profit, the country's most valuable company said.

However, its revenue from operations rose 15 per cent to Rs 220,592 crore as against Rs 191,271 crore in the year ago period.

“Our teams across businesses have done an excellent job in delivering strong operating performance through a challenging environment. All segments contributed to the robust growth in consolidated EBITDA on Y-o-Y basis," said Mukesh Ambani, Chairman and Managing Director.

Reliance Jio

Reliance Industries' telecom arm Reliance Jio Infocomm's net profit rose 29 per cent to Rs 4,881 crore compared with Rs 3,795 crore in the third quarter of last financial year. Its revenue rose 21 per cent to Rs 29,195 crore.

Jio's subscriber base rose nearly 3 per cent annually to 432.9 million and its average revenue per user (ARPU), a key metric of telecom company's profitability, improved to Rs 178.2 per subscriber per month compared with Rs 177.2 in the previous quarter and Rs 151.6 in the same period last year, Jio said in a press release.

Sustained subscriber additions and higher ARPU drive revenue and EBITDA growth for the connectivity business. In addition, higher realisations from digital services drives JPL consolidated revenue growth, Jio said.

During the quarter Jio rolled out 5G services in 134 cities across 22 states and Union Terrritories, the company added.

“Jio is undertaking the most ambitious and fastest ever 5G rollout plan for any country of our size. Within three months of launch, Jio True5G is now available across 134 cities and would be available across India by December 2023. In addition, Jio will connect over 100 million premises with JioFiber and JioAirFiber offering unparalleled digital experiences," said Akash M Ambani, Chairman, Reliance Jio Infocomm.

He added, "We will also empower small merchants and businesses with cutting-edge, plug-and-play solutions delivered from the cloud.”

Reliance Retail

Reliance Retail Venture's showed solid performance during the third quarter as it posted highest quarterly revenue of Rs 67,623 crore, up 17 per cent annually. Its profit came in at Rs 2,400 crore, up 6 per cent versus Rs 2,259 crore in the year ago period.

Reliance Retail's number of stores rose nearly 20 per cent annually with 17,225 stores at the end of the third quarter and store foot falls improved by 26 per cent to 201 million, the company said.

“Our performance during the quarter demonstrates the underlying strengths and efficiencies of our business model that enable us to serve our customers with excellence at all times. We remain steadfast in offering the best shopping experience across all our stores and digital platforms to deepen our bond with our customers and vendor partners,” said Isha Ambani, Executive Director at Reliance Retail Ventures.

Reliance Industries shares ended 1.15 per cent lower at Rs 2,442.70 ahead of its earnings announcement.