Reliance Industries Ltd on Friday reported its highest-ever quarterly consolidated net profit of Rs 11,640 crore or $1.6 billion for the quarter ended December 31, 2019, rising by 13.5% on a year-on-year basis.
A strong performance across refining, Jio and retail pushed higher the consolidated net profit on a year-on-year basis.
The company had reported a consolidated net profit of Rs 10,251 crore during the corresponding period of financial year 2018-19.
According to the company, the net profit which represents the owner's share includes an exceptional item - an expense of Rs 177 crore on account of liability towards license fees.
The company's net profit for the quarter, excluding the impact of the exceptional item, would have been Rs 11,817 crore.
Commenting on the results, Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries Ltd said: "The third quarter results for our energy business reflects the weak global economic environment and volatility in energy markets."
"Within our O2C chain, downstream petrochemicals profitability was impacted by weak margins across products with subdued demand in well-supplied markets. Refining segment performance improved in a difficult operating environment given our continuous focus on cost positions, high operating rates and product placement."
Ambani also said: "I am pleased with the progress of our consumer businesses which continue to establish new milestones every quarter. We saw consistent same store sales growth and record footfall across our stores driven by our compelling proposition of great shopping experience and superior value."
"Jio is focused on giving unmatched digital experience to consumers on a nationwide basis at most affordable price, and accordingly expanding network capacity and coverage to keep pace with demand."
However, RIL's consolidated revenue during the quarter under review decreased by 1.4 per cent to Rs 168,858 crore or $ 23.7 billion from Rs 171,300 crore reported for the quarter ended December 31, 2018.
"Decrease in revenue is primarily on account of 10.6 per cent decline in O2C business revenues, with lower product price realisation and 6.6 per cent fall in Brent crude price. This was partially offset by continuing growth momentum in consumer businesses," RIL said in the results' statement.
"Digital services and retail business recorded an increase of 36.2 per cent and 27.4 per cent respectively, in revenue during the quarter compared to the corresponding quarter of the previous year."
Besides, the company reported that its exports, including deemed exports, from RIL's India operations were lower by 13.7 per cent at Rs 53,804 crore or $7.5 billion as against Rs 62,378 crore in the corresponding period of the previous year due to lower price realisation from petrochemical and refining business.
"Higher sales volume of petrochemicals business products in the domestic market also contributed towards reduction in exports," the statement said.
"Other expenditure increased by 1.2 per cent to Rs 21,202 crore ($3 billion) as against Rs 20,957 crore in the corresponding period of the previous year primarily due to higher network operating and regulatory and access charges."
The revenue from company's organised retail business in 3Q FY20 grew by 27.4 per cent YoY to Rs 45,327 crore from Rs 35,577 crore with accelerated store roll-out and strong LFL sales.
In addition, Reliance Jio posted a 62.5 per cent growth in its net profit for the quarter under review ending December at Rs 1,350 crore backed by strong voice and data traffic.
"Jio has continued on its unprecedented growth journey receiving overwhelming customer response for best in class mobile connectivity services. We are delivering on our promise to be the driver of digital revolution in the country. Jio is also determined to redefine the wireline infrastructure, home entertainment and enterprise market in India with its FTTx services which bundle best-in-class connectivity with bouquet of digital content and services," Ambani was quoted as saying in a separate statement.
"To drive the next leg of growth, a truly transformational and disruptive digital services company has been set-up which will bring together India's No.1 connectivity platform, leading digital app ecosystem and world's best tech capabilities, for creating a truly digital society for each Indian," he added.
Jio's subscriber base as on December 31, 2019, was at 370 million with a net addition of 14.8 million during the quarter in consideration.