Reliance net profit decreased, but revenue increased by 15%
Reliance's net profit decreased, but revenue increased: profit decreased by 13.5% to 17,806 crores in the third quarter, and revenue increased by 15%
Reliance Industries Limited (RIL) declared the results for the third quarter that ended December 2022 (Q3FY23). The company's consolidated net profit year-on-year (YoY) declined by 13.30% to Rs 17,806 crore. The company registered a net profit of Rs 20,539 crore in the same quarter last year. Its revenue from operations increased to Rs 220,592 crore, which is 15.32% higher than Rs 191,271 crore a year ago.
Company's Chairman and Managing Director Mukesh Ambani said – All segments have contributed to the strong growth on a year-on-year basis. Our teams across all businesses have done an outstanding job. The company said its EBITDA grew 13.5% year-on-year to Rs 38,460 crore ($4.6 billion). Growth in the subscriber base in digital business, growth in the consumption basket and good performance of other businesses contributed to the EBITDA growth.
Reliance's telecom arm Jio has recorded a 28.3% increase in profit. The company's net profit increased to Rs 4,638 crore from Rs 3,615 crore a year ago. Jio's net profit has increased by 2.65% in Q3FY23 as compared to the second quarter ending September 2022. The company's net profit in the second quarter was Rs 4,518 crore. Jio is India's largest telecom carrier by subscribers.
Its revenue from operations grew by nearly 19% to Rs 22,998 crore in Q3FY23 as compared to Rs 19,502 crore in the same quarter last year. The company's operating profit margin expanded to 26.6% for the December quarter, compared to 26.3% in September and 26.1% in the year-ago quarter. Net profit margin came in at 17.1% in September as against 26.1% in the same quarter last year.
Reliance Jio's subscriber base increased to 43.29 crores in the third quarter. In the previous quarter i.e. (Q2FY23) these were 42.76 crores. It was 42.10 crores in the same quarter a year ago (Q3FY22). And the ARPU increased from Rs 177.2 to Rs 178.2 in the quarter as compared to the previous quarter. The ARPU was Rs 151.6 a year ago.
Reliance Industries said its board has approved fundraising of Rs 20,000 crore through non-convertible debentures (NCDs) on a private placement basis.
