RIL Q3FY21 reports 27.78% YoY jump in profit to Rs 14,894 crore

Reliance Industries Limited today announced the quarterly results and reported a 27.78 per cent year-on-year (YoY) rise in consolidated profit at Rs 14,894 crore for the quarter ended December 31, 2020 (Q3FY21). The company has posted a net profit of Rs 11,841 crore in the corresponding quarter of the last financial year (Q3FY20). Sequentially, the oil-to-telecom conglomerate's net profit in the previous quarter stood at Rs 10,589 crore.

The company's revenue from operations for Q3FY21 declined by 21.10 per cent to Rs 1,23,997 crore against Rs 1,57,165 crore reported last year. Its revenue in the September quarter stood at Rs 1,16,195 crore.

Reliance Industries Limited (RIL) and BP have started production from the R Cluster, an ultra-deep-water gas field in block KG D6 off the east coast of India. RIL and BP are developing three deepwater gas projects in block KG D6 – R Cluster, Satellites Cluster and MJ – which together are expected to meet 15 per cent of India's gas demand by 2023. These projects will utilize the existing hub infrastructure in KG D6 block. RIL is the operator of KG D6 with 66.67 per cent participating interest and BP holds 33.33 per cent participating interest.

The company said, Reliance Retail Ventures Limited (RRVL), a subsidiary of Reliance Industries Limited (RIL) completed the capital raise of Rs 47,265 crore for 10.09 per cent equity stake. This is the largest fundraising in the sector

It further added, the company has acquired the shares of IMG Reliance Limited (IMG-R) held by IMG Singapore Pte. Ltd for a cash consideration of Rs 52 Crore. Post completion of the acquisition, IMG-R has become a wholly-owned subsidiary of the Company and will be rebranded by the Company.

During the quarter, Jio Platforms Limited (JPL), a subsidiary of the Company has raised funds to the extent of Rs 33,737 crore by issuing equity shares to Google International LLC.

During the quarter, JPL, redeemed Rs 33,737 crore, 0.01 per cent Non-Cumulative Optionally Convertible Preference Shares (OCPS) and converted Rs 48,241 crore of OCPS into equity shares. The total amount of investments of the Company in equity shares of JPL is Rs 53,191 crore.

Reliance Industries in a statement said, "The outbreak of coronavirus (COVID-19) pandemic globally and in India is causing significant disturbance and slowdown of economic activity. The Group's operations and revenue during the period were impacted due to COVID-19. The Group has taken into account the possible impact of COVID-19 in preparation of the unaudited consolidated financial results, including its assessment of the recoverable value of its assets based on internal and external information up to the date of approval of these unaudited consolidated financial results and current indicators of future economic conditions."

It added, the Group has recognised Deferred Tax Assets of Rs 15,570 crore in respect of the difference between the book base and tax base of the Shale Gas Operations, in accordance with Ind AS 12 – Income Tax. The net impact of Rs 121 crore has been disclosed as an 'Exceptional Item' in the Consolidated Financial results.

Shares of Reliance Industries Limited closed 48.20 points or 2.30% down at 2049.65 apiece on the BSE on Friday.