PBT (profit before tax) rose 3.58% year-on-year (YoY) to Rs 14,962 crore in Q3 December 2019, RIL said in a statement after market hours on Friday, 17 January 2020. Ahead of results, shares of RIL rose 2.79% to Rs 1580.65 on Friday.

RIL incurred one-time expense of Rs 177 crore during the quarter. In view of Supreme Court judgment on adjusted gross revenue (AGR), the company recognised estimated liability for the period 2010-11 to 2018-19 towards license fees or spectrum usage charges at Rs 177 crore.

The revenue decreased Q3 December 2019 primarily on account of 10.6% decline in order-to-cash (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. 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 the previous year.

Revenue from the refining & marketing segment declined by 7.2% YoY to Rs 103,718 crore while segment EBIT increased 11.9% YoY to Rs 5,657 crore with higher throughput and better gross refining margins (GRMs). RIL delivered robust performance in a volatile crude pricing environment with geopolitical tensions impacting freight markets and heavy crude sourcing.

RIL's GRM, or what it makes from turning every barrel of crude to fuel, came in at $9.2 per barrel from $8.8 per barrel. Benchmark Singapore refining margins turned negative in December 2019, averaging $1.6/bbl during the quarter, compared with $6.55 in the previous quarter and $4.3 in Q3 December 2018.

Revenue for the oil & gas segment decreased by 26.1% YoY to Rs 873 crore. The segment performance continued to be impacted by declining volume and prices.

Revenue from the petrochemicals segment fell 19.1% to Rs 36,909 crore in Q3 December 2019, from Rs 45,619 crore in the same quarter last year.

Commenting on the results, Mukesh D. Ambani, chairman and managing director, RIL 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. 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 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.

RIL's outstanding debt as on 31 December 2019 was Rs 306,851 crore compared to Rs 287,505 crore as on 31 March 2019. Cash and cash equivalents as on 31 December 2019 were at Rs 153,719 crore compared to Rs 133,027 crore as on 31 March 2019.

Reliance Jio

The telecom arm's standalone revenue from operations, including access revenues, stood at Rs 13,968 crore in December quarter. It posted a 62.5% jump in its standalone net profit at Rs 1,350 crore for the quarter, compared with net profit of Rs 831 crore in the corresponding quarter a year ago. Reliance Jio's EBITDA (earnings before interest, taxes, depreciation, and amortisation) grew 38% YoY to Rs 5,601 crore. EBITDA margin was 40.1%.

The December quarter saw Reliance Jio subscriber base reaching 37 crore, up 32.1% year-on-year, with net addition of 1.48 crore during Q3 December 2019. The company's ARPU (average revenue per user) during the quarter stood at Rs 128.4 per subscriber per month. Total wireless data traffic during the quarter was recorded at 1,208 crore GB, which is up 39.9% YoY. The company said the total voice traffic during the quarter stood at 82,640 crore minutes, growing at 30.3% YoY.

During the quarter, Jio introduced IUC (interconnect usage charges) tariffs for recovery of termination charges owing to regulatory uncertainties. For recharges done by Jio customers effective 10 October, calls made to other mobile operators are charged at the prevailing IUC rate (6 paise per minute) through top-up vouchers.

Reliance Retail

Reliance Retail, as India's largest retail company by turnover, profits and store network, sustained its resilient performance and delivered another quarter of robust revenue growth and profit improvement. It had over 176 million customers walk into its stores during the quarter with registered customers at 117 million, growing 42.6% over the same period last year.

The retail business continues to maintain its strong track record of profit growth, reflective of a business model that is working and delivering results. EBITDA for the quarter was at Rs 2,727 crore, growing 62.3% year-on-year with margin on net revenue expanding by 140 bps, from 5.3% to 6.7%. Overall, segment gross sales stood at Rs 45,327 crore for the quarter, rising 27.4% over the corresponding period of the previous year, within which the consumer electronics, fashion & lifestyle and grocery segments combined delivered accelerated growth of 35.7%.

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