Energy-to-telecom behemoth Reliance Industries (RIL) on Friday reported better-than-expected financial results for the quarter ended September 30. A sharp recovery in the retail segment, coupled with sustained growth in the oil-to-chemicals (O2C) and digital services business, aided the financials.
Earlier during the day, shares of the company closed 0.15 per cent higher at Rs 2,627.05 on the BSE. On the other hand, the benchmark BSE Sensex settled 101 points, or 0.17 per cent, lower at 60,821. Here are the key takeaways from the company's quarterly results.
Bottomline: Consolidated net profit of the company jumped 46 per cent year-on-year to Rs 15,479 crore in Q2FY22 against Rs 10,602 for the corresponding quarter last year. Earlier, brokerage such as YES Securities and Centrum Broking projected 36.50 per cent and 38 per cent YoY rise in net profit for RIL. Net profit (attributable to owners of the company) grew around 43 per cent YoY to Rs 13,680 crore.
Topline: Revenue increased by 49.19 per cent YoY to Rs 1,91,532 crore. Commenting on the Q2 results, Mukesh Ambani, Chairman and Managing Director, Reliance Industries said, "Our O2C business benefited from a sharp recovery in demand across products and higher transportation fuel margins. Reliance Retail continues to grow on the back of rapid expansion of both physical stores and digital offerings resulting in healthy growth in revenues and margin expansion. Jio, Our digital services business continues to transform the broadband market in India and set new benchmarks for the industry."
Operating profit: EBITA of the company jumped 30 per cent YoY to Rs 30,283 crore. "With reopening and revival in economic activity, all businesses contributed positively to EBITDA growth," RIL said.
Jio Platforms: Net profit of Jio Platforms increased by 23.48 per cent YoY to Rs 3,728 crore. On the other hand, EBITDA jumped by 16.60 per cent YoY to Rs 9,294 crore. EBITDA margin stood at 47 per cent in Q2FY22 over 43.10 per cent in Q2FY21. The average revenue per user (ARPU) came at Rs 143.6 per subscriber per month which is 3.7 per cent up over the preceding quarter. Gross revenue for the quarter stood at Rs 23,222 crore in Q2FY22, up 15.2 per cent YoY.
Reliance Retail: The segment delivered a strong performance as the consolidated gross revenue stood at Rs 45,426 crore for Q2FY22, up 10.5 per cent YoY and higher than the pre-Covid period. "The quarter saw robust growth across all consumption baskets led by strong revival in consumer sentiments amid festivities, relaxations in Covid related curbs and vaccinations. The business re-established growth momentum in Fashion & Lifestyle with sales closing above pre-Covid levels. Consumer electronics and grocery maintained strong growth momentum," RIL said, adding the net profit of Reliance Retail jumped 74.20 per cent YoY to Rs 1695 crore.
Oil2Chemicals: Segment revenue for Q2FY22 increased by 58.1 per cent YoY to Rs 120,475 crore, primarily due to improved realisation on the back of the increase in oil prices and higher volumes. Segment EBITDA also improved by 43.9 per cent YoY to Rs 12,720 crore in Q2 primarily on account of better transportation fuel cracks, higher intermediates product deltas, efficient product placement and yield management.
Oil and Gas: Revenue from oil and gas segment increased by 363 per cent YoY to Rs 1,644 crore in Q2FY22. Segment EBITDA also jumped by 34 per cent QoQ to Rs 1,071 crore due to an increase in the production from KG-D6 block and US Shale and an increase in price realisation.
Outstanding debt and cash: The company's cash and cash equivalents stood higher than the outstanding debt as of September 30, 2021. Outstanding debt and cash and cash equivalent came at Rs 255,891 crore and Rs 259,476 crore, respectively, in Q2FY22.
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