Mukesh Ambani’s RIL Q4: Net Profit Rises To Rs 13,227 Crores, With A Dividend Of Rs 7 Per Share

By Angel Broking | Published on 3rd May 2021 | 119

Mukesh Ambani's RIL Q4: Net Profit Rises To Rs 13,227 Crores, With A Dividend Of Rs 7 Per Share

Overview

RIL’s fourth-quarter net profit rose 108.36% year-on-year to Rs 13,277 crores. In the previous quarter, the oil-to-telecom conglomerate posted a consolidated net profit of Rs 6,348 crores. Reliance Industries Ltd had a net profit of Rs 13,101 crores in the previous quarter (October-December 2020). RIL’s income generated from operations in the fourth quarter was Rs 1.54 lakhs crores, up from Rs 1.39 lakhs crores in the previous quarter and Rs 1.23 lakhs crores in the October-December quarter.

For the fiscal year ending March 31, 2021, RIL announced a dividend of Rs 7 per equity share of Rs 10 each. On a low base, most brokerages expected RIL to record a 100% year-on-year increase in net profit.

Highlights From RIL’s Fourth Quarter Performance In 2021

  • The profit of Rs 13,227 crores was attributable to the company’s shareholders, while the gross profit of Rs 14,995 crores in the fourth quarter increased by 129.1% year on year. In the fourth quarter of the previous year, RIL had a gain of Rs 797 crores, compared to a loss of Rs 4,267 crores in the fourth quarter of the previous year.
  • RIL’s revenue from operations increased by 11% to Rs 1.54 lakhs crores from Rs 1.39 lakhs crores the previous year. The global pandemic, as well as the pandemic in India, is causing substantial disruption and slowing of economic development. The company stated that the pandemic had an effect on RIL’s operations and revenue during the time.
  • In the January-March quarter of FY21, profit O2C market increased by 4.4 percent to Rs 1.01 lakhs crores, up from Rs 96,732 crores the previous year. The oil and gas segment produced Rs 848 crores in revenue, compared to Rs 625 crores in the same quarter the previous year. Though revenue from digital services increased to Rs 22,628 crores from Rs 19,153 crores in the previous quarter. In the fourth quarter of FY21, RIL’s retail business generated Rs 46,099 crores in revenue.
  • Reliance Industries Ltd has seen a strong recovery in its O2C and retail segments, as well as steady growth in its digital services division. High utilisation rates across sites, as well as improvements in downstream product deltas and transportation fuel margins, boosted O2C earnings. In these trying times, consumer companies have proven to be a digital and physical lifeline for the nation.
  • Millions of Indians were able to operate, study, and even access healthcare from the comfort of their own homes thanks to Jio’s high-speed connectivity. Reliance Retail ensured that critical goods and services were delivered to consumers’ homes in a safe and timely manner. Despite the fact that the pandemic has altered people’s lives, the organisation has generated nearly 75,000 jobs while ensuring the health and safety of our employees and their families.

Consolidated Revenue For Jio Platforms Has Been Decreased

Jio Platforms, RIL’s telecom and digital providers arm, recorded a 0.5 percent increase in consolidated web revenue to Rs 3,508 crores, which was higher than expectations. The arm’s operating income fell 6.1% sequentially to Rs 18,278 crores, reflecting the negative impact of the farmers’ protests in North India during the quarter. The arm’s average monthly revenue per user fell significantly from the previous quarter to Rs 138.2 per subscriber, falling short of expectations.

Reliance Retail’s Revenue Has Increased By 20%

Thanks to the easing of pandemic restrictions, more stores were able to reopen during the quarter, resulting in a 20% increase in revenue from operations to an all-time high of Rs 41,296 crores. Grocery and fashion saw all-time high revenues, while strong growth in consumer electronics was aided by higher Jio unit sales. Reliance Retail’s operating efficiency was also strong in the quarter, with working revenue rising 41% year over year to Rs 3,617 crores. The arm’s working margin has increased to 8.8% from 7.4% a year ago.

Performance Of RIL’s Stock

RIL’s share price dropped 1.42 percent to Rs 1,994.45 per share on the BSE ahead of the Q4 results announcement. RIL’s stock price has dropped 1.3 percent so far in April 2021. It, however, remains below its 52-week high of Rs 2,368 per share.