Reliance Industries Limited (RIL) on Thursday reported a consolidated profit of Rs 13,248 crore for the first quarter of the ongoing financial year with Jio's average revenue per user (ARPU) growth of 7.4% quarter on quarter at Rs 140.3 per subscriber per month.
"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 Chairman and Managing Director Mukesh Ambani.
"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.
The consolidated profit during June quarter 2020 increased 102.4% sequentially and the year-on-year increase was 30.6%.
The consolidated profit in March quarter 2020 stood at Rs 6,348 crore and Rs 10,141 crore in the corresponding period of last year.
In the March quarter, the company had reported an exceptional loss of Rs 4,267 crore due to a fall in oil prices. The profit before the exceptional item was at Rs 10,813 crore.
Reliance's consolidated revenue for the quarter stood at Rs 1,00,929 crore compared to Rs 1,51,461 crore QoQ and Rs 1,74,087 crore year-on-year. Its earnings before interest, tax, depreciation and amortisation (EBITDA) came in at Rs 16,875 crore in June quarter against Rs 21,782 crore in previous quarter while margin at 19.1% in June quarter expanded sharply from 16% in March quarter, beating Street expectations.
Ambani said Reliance Industries completed the largest fund raise in Indian Corporate history in this quarter. "I thank the millions of individual investors who supported our Rights Issue and welcome all our new partners to an exciting new phase of growth at Reliance,” he said.
RIL's digital unit Jio Platforms, which raised Rs 1,52,056 crore during the quarter under review from some of the world’s top tech investors led by Facebook, was one of the few companies to have grown during the coronavirus lockdown.
With the fund raising from stake sale in Jio Platforms, Rights issue of Rs 53,124 crore and stake sale to BP in petro-retail joint venture, Reliance achieved its net debt free target in June 2020, which is well ahead of its timeline March 31, 2021.
Reliance Industries said that post completion of these investments, it would hold 66.48% equity stake in Jio Platform on a fully diluted basis.
"Of the total investment, Jio Platform Limited has already received Rs 1,15,694 crore as subscription amount from ten investors. Rs 22,981 crore will be retained at Jio Platform to drive future growth," it added.
Reliance Jio, the wholly owned subsidiary of billionaire Mukesh Ambani-owned Reliance Industries, has reported a profit at Rs 2,520 crore for the June quarter 2020, rising 8.1% over Rs 2,331 crore in March quarter.
Average revenue per user (ARPU) for the June quarter at Rs 140.3 per subscriber per month grew by 7.4% compared to Rs 130.6 in previous quarter. It was much higher than street expectations.
Jio's revenue in June quarter increased 11.6% sequentially to Rs 16,557 crore, and EBITDA surged 17.4% quarter-on-quarter to Rs 7,281 crore and margin jumped 220 bps QoQ to 44 percent during the quarter, which all came in above analysts expectations.
RIL is now one of the 50 most valued companies globally with a market capitalisation of Rs 13.92 lakh crore at its record high price.
Promoters' shareholding stood at 50.37% in the June quarter up from 50.07% in the March quarter, while foreign portfolio investors (FPIs) raised their stake to 24.72% from 24.05% in the same period.
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