Mukesh Ambani’s RIL Q4 net profit doubles on-year to Rs 13,227 cr, misses estimate

Ahead of Q4 results announcement, RIL share price fell 1.42 per cent to end at Rs 1,994.45 apiece on BSE. Image: Reuters

Mukesh Ambani-led RIL’s fourth quarter (January-March) net profit rose 108.36 per cent on-year to Rs 13,277 crore, which is below estimates. Oil-to-telecom major had reported a consolidated net profit of Rs 6,348 crore in the year-ago quarter. Earlier in the previous quarter (October-December 2020), Reliance Industries Ltd had posted a net profit of Rs 13,101 crore. RIL’s consolidated revenue from operations came in at Rs 1.54 lakh crore in the fourth quarter, against Rs 1.39 lakh crore in the corresponding quarter last year and Rs 1.23 lakh crore in the October-December quarter.

RIL declared a dividend of Rs 7 per equity share of Rs 10 each for the financial year ended 31 March, 2021. Most brokerages such as Kotak Securities and JM Financial had estimated RIL to report a 100 per cent on-year rise in net profit on a low base. A CNBC TV18 poll of analysts had estimated RIL to post a net profit of Rs 14,800 crore on a revenue of Rs 1.45 lakh crore in the fourth quarter.

RIL Q4 results 2021 highlights

• According to the company, the profit of Rs 13,227 crore was attributable to owners of the company, while the total profit of Rs 14,995 crore in the fourth quarter rose 129.1 per cent on-year.
• RIL had a one-time gain of Rs 797 crore as against a one-time exceptional loss of Rs 4,267 crore in the fourth quarter of the previous year
• RIL’s revenue from operations jumped 11 per cent to Rs 1.54 lakh crore as compared to Rs 1.39 lakh crore in the year-ago period
• The outbreak of COVID-19 pandemic globally and in India is causing significant disturbance and slowdown of economic activity. The company informed that RIL’s operations and revenue during the period were impacted due to COVID-19.
• Segment-wise, the revenues in the dominant oil-to-chemicals (O2C) business rose 4.4 per cent to Rs 1.01 lakh crore in the January-March quarter of FY21 from Rs 96,732 crore in the same period last year.
• The revenues from the oil and gas segment came in at Rs 848 crore, as against Rs 625 crore in the corresponding quarter of the previous year.
• While the revenues from digital services stood at Rs 22,628 crore as compared to Rs 19,153 crore in the same quarter last year.
• The revenues from RIL’s retail business were at Rs 46,099 crore in the fourth quarter of FY21.

Mukesh Ambani, Chairman and Managing Director, Reliance Industries Limited said that Reliance Industries Ltd has registered robust recovery in O2C and retail segment, and resilient growth in Digital Services business. “Sustained high utilization rates across sites and improvement in downstream product deltas as well as transportation fuel margins aided O2C earnings growth. Our consumer businesses have proved to be a digital and physical lifeline for the nation in these challenging times,” RIL chief added.

RIL share price performance

Ahead of Q4 results announcement, RIL share price fell 1.42 per cent to end at Rs 1,994.45 apiece on BSE. So far in April 2021, RIL share price has lost 1.3 per cent. However, RIL stock is still trading below its 52-week-high of Rs 2,368 per share.