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Reliance Industries Analysis: Q3FY20 Result | Investyadnya Stock Article

Reliance Industries Q3 2020 Result Analysis

Published on 30 January 2020 Views 38 Comments 0

Reliance Industries Q3 2020 Result Analysis

Reliance Industries Ltd – Quarterly Results Update

About Reliance Industries

Reliance Industries Limited (RIL) is an Indian multinational conglomerate company and owns businesses across India engaged in energy, petrochemicals, textiles, natural resources, retail, telecommunications, digital services & financial services.

 

In this article, we are going to discuss Reliance Industries Ltd (RIL) quarterly results update. RIL reported a net profit of Rs.11,640 Cr for Q3 FY 2019-20. Reliance Jio and Reliance Retail are the key growth drivers of Reliance Industries consolidated revenue and EBITDA. With Reliance Industries financials, get a thorough analysis of Reliance Industries results.



Reliance Industries Ltd (RIL) – Q3 FY20 Results Update


Business Verticals of Reliance Industries Ltd

Reliance Industries Ltd – Q3 FY2019-20 Results Analysis

Let’s analyse the consolidated Q3 FY 2019-20 results of the company. With these figures of reliance industries annual report, the video provides an in-depth Reliance Industries fundamental analysis.


Reliance Industries Ltd – Consolidated Q3 FY2019-20 Results
Revenue
  • The consolidated revenue of RIL is Rs.1,68,858 Cr. It is decreased by 1.4% YoY but increased on QoQ basis by 2.5%
  • Key Drivers of Revenue :
    • Robust revenue growth in consumer business- Jio (28.2%) & Retail (27.4%) amidst economic slowdown
    • Decrease in Refining Revenue (-7.2%) and Petrochemicals segment revenue (-19%) with volatile in crude oil prices amidst geopolitical tensions
EBITDA
  • The consolidated EBITDA for Q3 FY20 is almost Rs.23,500 Cr, increased by 4.7% YoY and 1.4% on QoQ basis.
  • Key Drivers of EBITDA :
    • Strong growth in consumer EBITDA (49% YoY)
      1. Jio EBITDA – 38% YoY
      2. Retail EBITDA – 62% YoY
    • By continuous capture of growth opportunities in consumer businesses
      1. Retail added 456 stores in Q3
      2. Jio added 1.48 Crore subscribers in Q3 (9 Crore subscribers in last 12 months)
    • Significant decline in EBITDA of Petrochemical business YoY due to
      1. Crude volatility : US-China Trade tensions, Weak global trade
      2. Lower volumes and weak margins
Net Profit

      For Q3 FY 2019-20, net profit, i.e. profit after tax (PAT) is Rs.11,640 Cr, increased by 13.5% YoY and 3.4% QoQ.

      The corporate tax rate cut by the government helped the company to pay the taxes at a reduced rate of 21% in Q3 FY20 from earlier rate of around 25-28% in previous quarters.

      The net effect was the rise in the effective net profit of the company in Q3 FY20.

You can check out the financial statements & quarterly results of the company, along with Reliance Industries share price, on the stock-o-meter feature of our website.

Get to know about the financial standing of Reliance Industries Limited with the revenue, EBITDA & other figures, as projected in Reliance Industries Financial statements & Reliance Industries balance sheet.


Reliance Jio Q3 FY20 Results: Reliance Industries Subsidiaries



Quarterly Financial Highlights of Reliance Jio – Q3 FY2019-20

       Financial Highlights :

       For Q3 FY20, healthy growth of around 28% is seen both in Gross Revenue and Operating Revenue of Reliance Jio as compared with the same quarter last year. Sequential QoQ growth is also very encouraging.

       EBITDA grew almost 38% YoY and 8.4% QoQ on account of strong volume growth.

       Despite the 31% rise in Profit Before Tax (PBT), Net Profit of the company almost doubled, increased by 63% YoY on account of corporate tax rate cut benefits. The tax rate has come down to 19% in the Dec-19 quarter from 35% both in Dec-18 and Sept-19 quarters.

       Key Operating Metrics :

       As on 31st December 2019, Subscriber base was 37 Crore (32% YoY growth), the net addition of 1.48 Cr in Q3 FY20 and  9 Crore during the last 12 months.

       Average Revenue Per User (ARPU) during Q3 FY20 = Rs.128.4 per subscriber per month

       Strong customer engagement and volume growth :

       Total wireless data traffic during the quarter of 1,208 crore GB (40% YoY growth)

       Healthy Per Capita usage at 11.1 GB & 760 minutes per user per month

       Most extensive distribution and sales channel Pan-India and Efficient Service Network


Reliance Retail Q3 FY20 Results


Quarterly Financial Highlights of Reliance Retail – Q3 FY2019-20

      EBITDA margins improved to 6.3% in Q3 FY20 led by :

      Strong LFL (Like-for-Like) sales by increasing sales productivity

      The benefit of scale and operational efficiencies in sourcing and logistics

      Rapid expansion and deepening roots in Tier 3 and Tier 4 markets

      During Q3 FY20, Reliance Retail added 456 stores taking the total store count to 11,316 stores, with the area under operations of 26 Mn.sq.ft

      Key Driving Heads in Retail Business (with 60% Revenue Contribution)

      Consumer Electronics

      Grocery

      Fashion & Lifestyle

      Impactful Consumer Offers resulted in strong sales due to value is driven diverse portfolio during the festive period (Oct-Dec)

Make An Informed Investment Decision With Reliance Industries Stock Analysis

      As far as consolidated EBITDA mix is concerned, high growth potential businesses of Reliance Industries – Reliance Jio and Reliance Retail have contributed to 37% in Q3 FY20 from earlier 26% share in Q3 FY19.

      Both the business verticals have great earnings potential being in a consumer business segment.

      Despite the adverse effects of economic slowdown on the overall corporate earnings from the previous 2-3 quarters, EBIT margins (%) and Net profit of both Reliance Retail and Reliance Jio are growing at an exceptional rate.

      This shows how significant is the role of Reliance Jio and Reliance Retail in the future earnings growth of the Reliance Industries Ltd.

All in all, through this video of Reliance Industries Analysis, the investors will be able to make a viable investment decision.

Invest Yadnya’s Other Resources For Detailed Stock Analysis

Our website offers multiple resources on Reliance Industries Limited. You can check out our stock articles on Reliance Retail Company Analysis, Reliance Jio Stock Analysis, Reliance Industries Ltd Q2FY21 Analysis & many more. These articles will offer a detailed review of Reliance Industries stock.

Make all your investment decisions with us, as we offer quality financial advice. For more of such quality content, check out Invest Yadnya.


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REPORTS


      For Q3 FY 2019-20, net profit, i.e. profit after tax (PAT) is Rs.11,640 Cr, increased by 13.5% YoY and 3.4% QoQ.

      The corporate tax rate cut by the government helped the company to pay the taxes at a reduced rate of 21% in Q3 FY20 from earlier rate of around 25-28% in previous quarters.

      The net effect was the rise in the effective net profit of the company in Q3 FY20.

You can check out the financial statements & quarterly results of the company, along with Reliance Industries share price, on the stock-o-meter feature of our website.

Get to know about the financial standing of Reliance Industries Limited with the revenue, EBITDA & other figures, as projected in Reliance Industries Financial statements & Reliance Industries balance sheet.


Reliance Jio Q3 FY20 Results: Reliance Industries Subsidiaries



Quarterly Financial Highlights of Reliance Jio – Q3 FY2019-20

       Financial Highlights :

       For Q3 FY20, healthy growth of around 28% is seen both in Gross Revenue and Operating Revenue of Reliance Jio as compared with the same quarter last year. Sequential QoQ growth is also very encouraging.

       EBITDA grew almost 38% YoY and 8.4% QoQ on account of strong volume growth.

       Despite the 31% rise in Profit Before Tax (PBT), Net Profit of the company almost doubled, increased by 63% YoY on account of corporate tax rate cut benefits. The tax rate has come down to 19% in the Dec-19 quarter from 35% both in Dec-18 and Sept-19 quarters.

       Key Operating Metrics :

       As on 31st December 2019, Subscriber base was 37 Crore (32% YoY growth), the net addition of 1.48 Cr in Q3 FY20 and  9 Crore during the last 12 months.

       Average Revenue Per User (ARPU) during Q3 FY20 = Rs.128.4 per subscriber per month

       Strong customer engagement and volume growth :

       Total wireless data traffic during the quarter of 1,208 crore GB (40% YoY growth)

       Healthy Per Capita usage at 11.1 GB & 760 minutes per user per month

       Most extensive distribution and sales channel Pan-India and Efficient Service Network


Reliance Retail Q3 FY20 Results


Quarterly Financial Highlights of Reliance Retail – Q3 FY2019-20

      EBITDA margins improved to 6.3% in Q3 FY20 led by :

      Strong LFL (Like-for-Like) sales by increasing sales productivity

      The benefit of scale and operational efficiencies in sourcing and logistics

      Rapid expansion and deepening roots in Tier 3 and Tier 4 markets

      During Q3 FY20, Reliance Retail added 456 stores taking the total store count to 11,316 stores, with the area under operations of 26 Mn.sq.ft

      Key Driving Heads in Retail Business (with 60% Revenue Contribution)

      Consumer Electronics

      Grocery

      Fashion & Lifestyle

      Impactful Consumer Offers resulted in strong sales due to value is driven diverse portfolio during the festive period (Oct-Dec)

Make An Informed Investment Decision With Reliance Industries Stock Analysis

      As far as consolidated EBITDA mix is concerned, high growth potential businesses of Reliance Industries – Reliance Jio and Reliance Retail have contributed to 37% in Q3 FY20 from earlier 26% share in Q3 FY19.

      Both the business verticals have great earnings potential being in a consumer business segment.

      Despite the adverse effects of economic slowdown on the overall corporate earnings from the previous 2-3 quarters, EBIT margins (%) and Net profit of both Reliance Retail and Reliance Jio are growing at an exceptional rate.

      This shows how significant is the role of Reliance Jio and Reliance Retail in the future earnings growth of the Reliance Industries Ltd.

All in all, through this video of Reliance Industries Analysis, the investors will be able to make a viable investment decision.

Invest Yadnya’s Other Resources For Detailed Stock Analysis

Our website offers multiple resources on Reliance Industries Limited. You can check out our stock articles on Reliance Retail Company Analysis, Reliance Jio Stock Analysis, Reliance Industries Ltd Q2FY21 Analysis & many more. These articles will offer a detailed review of Reliance Industries stock.

Make all your investment decisions with us, as we offer quality financial advice. For more of such quality content, check out Invest Yadnya.


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