RIL Q2 results: Mukesh Ambani-led Reliance Industries' Q2 profit grows 43% at Rs 13,680 cr

Mukesh Ambani-led Reliance Industries Ltd (RIL), India's largest company by market valuation, has posted a solid second-quarter performance at Rs 13,680 crore net profit (attributable to owners of the company). This is 43 per cent more on a year-on-year basis than the profit worth Rs 9,567-crore reported during Q2 FY21.

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.

The oil-to-telecom major's revenue from operations grew 49 per cent to Rs 1.74 lakh crore during Q2 FY22, compared to Rs 1.16 lakh crore in Q2 FY21. The earnings before interest, tax, depreciation and amortisation (EBITDA) rose to Rs 26,020 crore, while the margin rose 15.5 per cent.

RIL Chairman Mukesh Ambani said Reliance has posted a strong performance in Q2 FY22. "This demonstrates the inherent strengths of our businesses and the robust recovery of the Indian and global economies," he said.

Ambani said all the RIL's businesses reflect growth over pre-COVID levels. "The operational and financial performance reflects a sharp recovery in the retail segment and sustained growth in Oil-to-Chemicals (O2C) and Digital Services business," he said.

Segment-wise, Reliance Retail clocked in revenue above pre-COVID levels at Rs 45,426 crore ($6.1 billion), which is higher by 10.5 per cent. The retail EBITDA for the said quarter was Rs 2,913 crore, which is higher by 45.2 per cent YoY, while the profit grew 74.2 per cent YoY to Rs 1,695 crore. Reliance Retail opened 813 new stores during the quarter, taking the total count to 13,635, the company noted in a regulatory filing.

Jio Platforms' consolidated net profit in Q2 FY22 rose 23.5 per cent YoY to Rs 3,728 crore. The company said Jio's customer base as of 30th September 2021 stood at 42.9 crore with a net addition of 2.3 crore during the quarter. Jio's ARPU (average revenue per user) during the quarter stood at Rs 143.6 per subscriber per month, up from Rs 138.4 during the previous quarter, with improving subscriber mix, better seasonality and FTTH momentum.

Also read: Reliance Jio Q2 results: Profit jumps 23.5% to Rs 3,728 cr; revenue up 7% to Rs 19,777 cr

The company has said both Reliance Jio and tech giant Google are working together to make JioPhone Next available more widely in time for the Diwali festive season.

As of September 30, JioFiber had over 4 million connected premises with continued improvement in customer connects every month, the company said.

Reliance's O2C business posted a record 58.1 per cent growth in revenue on a YoY basis at Rs 1,20,475 crore, primarily due to the higher volumes and improved realisation due to rising oil prices. Mukesh Ambani said RIL's O2C business benefited from "sharp recovery in demand across products and higher transportation fuel margins". The refinery throughput for Q2 FY22 stood at 17.1 MMT, up 11.8 per cent over Q2 FY21.

The company said its oil and gas segment posted a major 363 per cent YoY spurt in revenue to Rs 1,644 crore, with segment EBITDA of Rs 1,071 crore.

Reliance's capital expenditure (including exchange rate difference) for the said quarter was Rs 39,350 crore. Its cash and cash equivalents as of Q2 FY22 stood at Rs 2,59,476 crore, which are higher than the outstanding debt of Rs 2,55,891 crore.

Ahead of the July-September financial result today, the shares of RIL gained over 1 per cent. The large-cap stock rose 1.5 per cent to Rs 2,664 against the previous close of Rs 2,623 on the BSE. The RIL stock gained after 2 days of consecutive fall.

RIL's net profit for Q1 FY22 had grown 31 per cent on a consolidated basis to Rs 13,233 crore vs Rs 10,104 crore during the same quarter last year. The company had seen a 44 per cent decline in net revenue to Rs 91,238 crore vs Rs 1,62,353 crore during the same quarter last year.

Also read: Reliance Industries stock rises ahead of Q2 earnings, here's what to expect

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