Markets will remain closed on 21^st April, 2021 on account of Ram Navami.

RELIANCE IND. Announces Quarterly Results (2QFY21); Net Profit Down 7.1%

Wed, 4 Nov

RELIANCE IND. has announced its results for the quarter ended September 2020. Here is a detailed performance review of the same:

RELIANCE IND. Quarterly Financials

No. of Mths Qtr. Ending		3 Sep-19*	3 Jun-20*	3 Sep-20*	QoQ Change	YoY Change
Net Sales	Rs m	1,521,490	912,380	1,161,950	27.4%	-23.6%
Other income	Rs m	36,140	43,880	42,490	-3.2%	17.6%
Turnover	Rs m	1,557,630	956,260	1,204,440	26.0%	-22.7%
Expenses	Rs m	1,299,970	743,630	972,500	30.8%	-25.2%
Gross profit	Rs m	221,520	218,410	189,450	-13.3%	-14.5%
Depreciation	Rs m	53,150	63,080	66,260	5.0%	24.7%
Interest	Rs m	54,500	67,350	60,840	-9.7%	11.6%
Profit before tax	Rs m	150,010	131,860	104,840	-20.5%	-30.1%
Tax	Rs m	37,030	2,600	-130	-105.0%	-100.4%
Profit after tax	Rs m	112,980	129,260	104,970	-18.8%	-7.1%
Gross profit margin	%	14.6	23.9	16.3
Effective tax rate	%	24.7	2.0	-0.1
Net profit margin	%	7.3	13.5	8.7

Year-on-Year Performance:

• The company's operating income during the quarter fell 23.6% on a year-on-year (YoY) basis. The expenses were down by 25.2% YoY during the same period.
• The company's operating profit declined by 14.5% YoY during the quarter. Consequently, operating profit margins witnessed a growth and stood at 16.3% in 2QFY21 as against 14.6% in 2QFY20.
• Depreciation charges increased by 24.7% and finance costs increased by 11.6% YoY, respectively.
• Other income increased by 17.6% YoY during the quarter.
• Net profit for the quarter declined by 7.1% YoY. Net profit margins during the quarter increased from 7.3% in 2QFY20 to 8.7% in 2QFY21.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter grew 27.4% on a quarter-on-quarter (QoQ) basis. The expenses were up by 30.8% QoQ during the same period.
• The company's operating profit declined by 13.3% QoQ during the quarter. Consequently, operating profit margins witnessed a decline and stood at 16.3% in 2QFY21 as against 23.9% in 1QFY20.
• Net profit for the quarter declined by 18.8% QoQ, while net profit margins declined from 13.5% in 1QFY20 to 8.7% in 2QFY21.

To see how RELIANCE IND. has performed over the last eight quarters,please visit here.

LIVE on April 23rd: Has Covid impacted India's long-term growth potential?

RELIANCE IND. Share Price Performance

Over the last one year, RELIANCE IND. share price has moved up from Rs 1,457.3 to Rs 1,863.6, registering a Gain of Rs 406.4 or around 27.9%.

Meanwhile, the S&P BSE OIL & GAS Index is trading at Rs 11,795.4 (down 0.1%). Over the last one year it has moved down from 15,668.7 to 11,795.4, a gain of 3,873 points (down 24.7%).

Overall, the S&P BSE SENSEX is up 0.4% over the year.

Current Valuations

At the current price of Rs 1,863.6, the price to earnings (P/E) ratio of RELIANCE IND. stands at 29.0 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 2.7 times.