Reliance Industries Limited (RIL) declared its results on Friday. RIL reported a 12.5 per cent growth in consolidated net profit. The net profit is Rs 13,101 crore for the third quarter ended December 31, 2020. The company had posted a net profit of Rs 11,640 crore in the corresponding period of last year.
Mukesh Ambani-led RIL recorded a sharp fall in revenue at its dominant oil-to-chemicals business. Consolidated revenue from operations declined 22% to ₹1.23 lakh crore as against ₹1.57 lakh crore in year-ago period.
From the Chairman
“At a time when the Indian economy is poised for a confident recovery, we at Reliance are humbled that we have been able to contribute to it with our Company’s impressive performance in the third quarter of FY21,” said Mukesh Ambani, Chairman and Managing Director, RIL, adding, “We have delivered strong operational results during the quarter with a robust revival in O2C and Retail segments, and a steady growth in our Digital Services business.”
“Our Oil-to-Chemicals (O2C) business has formally re-organized its reporting segments to reflect our new strategy and management matrix for this enterprise. The re-organized structure will facilitate holistic and agile decision making and enable us to pursue attractive new opportunities for growth, with strategic partnerships with the best and the biggest in this business globally. The O2C platform will increasingly move further downstream and become closer to customers. It will create planet friendly and affordable energy and materials solutions to meet the growing needs of every sector of the Indian economy,” said Ambani.
Future prospects of Reliance
Despite a drop in revenue, Reliance has managed to increase its net profit. This shows that it has managed to improve its operational efficiency. The share traded lower on Friday by 2.45%. Earlier in the year Mukesh Ambani was dethroned as Asia’s richest man by Zhong Shanshan. The company has returned more than 130% returns since its March lows. The company has bright prospects and will continue to lead the bourses to fresh highs.