The Reliance Industries Limited announced positive Q3 2019 results beating the street estimates. The business conglomerate reported a net profit of Rs 11,460 crore, up by 13.5% owing to phenomenal growth in retail and telecom vertical.
The quarterly EBITDA of digital services stood at Rs 5833 crores, up by 43.5%, the company's quarterly EBITDA of Retail business touched Rs 2,727 crore, up by 62.3%.
Reliance Industries reported strong operating performance across its consumer businesses.
The company's revenue declined by 1.4% to touch Rs 168,858 crores, PBDIT improved by 9.6% and settled at Rs 26,088 crore. The Profit Before Tax (PBT) increased by 3.6% to Rs 14,962 crores, Cash Profit increased by 10.7% to Rs 18,511 crore and Net Profit increased by 13.5% to touch Rs 11,640 crore.
For the Q3 2019, which ended on December 31, 2019, RIL achieved revenue of Rs 168,858 crore ($ 23.7 billion), a decrease of 1.4% as compared to Rs 171,300 crore in the corresponding period of the previous year. The dip in revenue is primarily due to a 10.6% decline in O2C business revenues, with lower product price realization and 6.6% fall in Brent crude price. This was partially offset by continuing growth momentum in consumer businesses.
The company's Digital Services and Retail business recorded an increase of 36.2% and 27.4% respectively, in revenue during the quarter compared to the corresponding quarter of Q3 2018.
Reliance Jio, the telecom arm of the company posted 62.45% yearly rise in profit at Rs 1,350 crore on an average revenue per user (Arpu) of Rs 128.40.
Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries Limited 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."
He further added "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 a most affordable price and accordingly expanding network capacity and coverage to keep pace with demand.
We are making good progress on the value unlocking initiatives announced earlier while building on sustainable growth platforms for our shareholders."