Reasons why Reliance Industry's profit increased by 35% in 2021

Reliance Industries which is led by Mukesh Ambani has recorded a rise in its profit of up to 35%. Reliance is one of the leading companies in the oil and telecom sector in the country. The telecom sector has been growing under the brand name Jio and had created a disruption in the market at the time of its launch. Let’s look at the financial results of Reliance Industries for the end of the financial year 31 March 2021 and the reason for the rise in profits.

About Reliance Industries
Results of Q3 2021
Reason for the Profit
FAQ

About Reliance Industries

Reliance Industries is an Indian based multinational conglomerate. The company was founded in the year 1973 and has its headquarters located in Mumbai, India. The company provides services across the globe and is the largest publicly traded company in India.

Some of the products and services of Reliance Industries include Petroleum, Natural Gas, Textiles, Petrochemicals, Telecommunications, Retail, Television, Media, Entertainment, Financial services, Music and Software.

Reliance Industries owns a lot of subsidiaries which include Jio Platforms, Reliance Retail, Jio Payments Bank, Reliance Petroleum, Alok Group, Network18 Group, Reliance Foundation and the IPL team Mumbai Indians.

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Results of Q3 2021

Reliance Industries which is an oil to telecom conglomerate reported a rise in its profit for the end of the year which ended on 31 March 2021 of about 34.7 % increase at INR 53, 739 crores. The company led by Mukesh Ambani had seen a net profit of around INR 39, 880 crores at the end of the previous financial year 2020.

The revenue generated by the company for the FY21 is around INR 5.39 lakh crore which is around 18.3 % lower than INR 6.60 lakh crore. Total income of the company reviewed under the fiscal fell around 20% from INR 6.26 lakh crore to INR 5.03 lakh crore which was recorded at the fiscal which ended on 31 March 2020.

This was conveyed by Reliance Industries on 30 April 2021 during a Regulatory filing. There was also a decline of around 4.6 % in the FY 21 in the Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) of the company which stood at INR 97, 580 crores.

The cash profit for the fiscal under review has seen an increase of around 18.8 % which stood at 79, 828 crores.

The net profit of the company for the March quarter of FY 21 had seen an increase of around 129 % year on year from INR 6, 546 crores to INR 14, 995 crores. The revenue for the quarter had also seen an increase of around 13. 62 % compared to the previous year from 1.52 lakh crore to 1.72 lakh crore for the current year.

The EBITDA of the company during the March quarter of FY21 saw an increase of 1.9 % month on month which was around 26, 602 crores. The cash profit of the company had seen a rise of around 6.5 % for the quarter ended on 31 March 2021 which is INR 22, 746 crores.

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Reason for the Profit

Reliance Industries had said that its non-convertible debentures (NCDs) outstanding as of 31 March 2021 were around INR 66,665 crore in which INR 13,351 crores are secured non-convertible debentures.

Reliance further added that the secured non-convertible debentures of the company which is recorded at INR 13,351 crores for the year ended 31 March 2021 are secured through movable properties by the way of its first charge.

Mukesh Ambani who is the chairman of Reliance Industries conveyed that they have seen a vigorous growth in the O2C and retail segment of the business and a strong growth in the Digital Services in their business.

The growth of O2C earnings was supported through the sustained high utilization rates across sites, transportation fuel margins as well as improvement in downstream products deltas. He added that during these challenging times the consumer business of Reliance Industries has proved to be a physical and digital lifeline for the nation.

FAQ

What is the annual profit of Reliance Industries?

The annual profit of Reliance Industries is 1,15,461 CRORE.

How many companies Mukesh Ambani have?

Mukesh Ambani have 7 companies under him.

Is Jio under Reliance Industries?

Yes, Reliance Industries wholly owns subsidiary of Reliance Jio Infocomm.

Conclusion

Mukesh Ambani-led Reliance Industries has added around 75,000 jobs during the Covid pandemic while ensuring the health and safety of the employees. Reliance Industries also announced a dividend of INR 7 per share.