Reliance Industries Reports Rs 13,233 Crore Net Profit For Q1, Jio Profit Spikes 183%

On Thursday, Reliance Industries Limited (RIL) reported a 30.97 percent year-on-year increase in net profit at Rs 13,233 crore largely on account of a significant increase of 54 percent growth in other income at Rs 4,388 crore.

The conglomerate made a one-time gain of Rs 4,966 crore on investment by British oil major BP in its fuel marketing business, that is, Reliance BP Mobility Services.

"The severe demand destruction due to global lockdowns impacted our hydrocarbons business but the flexibility in our operations enabled us to operate at near normal levels and deliver industry leading results," said Mukesh Ambani, Chairman and Managing Director.

"Our consumer facing businesses became the life-line for individuals and businesses with our Retail and Jio teams working hard to ensure millions got essential goods and services through the lockdown," he added.

Excluding the exceptional one time gain, RIL's consolidated profit for the June ended quarter rose 102.4 percent from the previous quarter and 30.6 percent from a year ago.RIL closed 0.61 percent higher at Rs 2,139 per share on BSE ahead of the results.

Reliance Jio

Reliance Jio Infocomm's net profit in the first quarter of the financial year 2020-21 rose by a massive 182.82 percent to Rs 2,520 crore from Rs 891 crore in the same period a year ago. Its revenue from operations was up 33.7 percent to Rs 16,557 crore while EBITDA (earnings before interest, taxes, depreciation, and amortization) grew 55.40 percent to Rs 7,281 crore.

Jio's ARPU (average revenue per user), a primary measure for revenue for a telecom business, was Rs 140.30 for the June ended quarter when compared to Rs 130.6 in the March quarter. In comparison, Bharti Airtel had reported an ARPU of Rs 157 in the same quarter.

Reliance Retail

RIL's retail arm that is known for brands like Reliance Fresh, Ajio, Reliance Trends, Reliance Footprint, JioMart and more, reported a 17.20 percent fall in revenue at Rs 31,633 crore and EBITDA declined 47.40 percent from the previous year to Rs 1,083 crore.

The company said that it is positive and resilient despite the limitations of the quarter, and cost management initiatives led to savings on fixed costs, which in turn helped cushion the impact of lower profits from lower sales.