RIL Q2 results: What Mukesh Ambani says on O2C, new energy biz

Mukesh Ambani, Chairman and Managing Director at Reliance Industries Ltd (RIL) on Monday cited strong growth at Digital Services and Upstream businesses, which helped his company partially offset weak contribution from O2C (oil to chemicals) business that was impacted by unfavorable global demand-supply dynamics. In a press release, Ambani talked about strengthening of retail operations, likely kick start of production of solar PV modules by the end of this year, and increased average revenue per user (ARPU) and improving customer engagement metrics at RIL's Digital Services segment.

RIL reported a 4.78 per cent year-on-year (YoY) fall in consolidated net profit at Rs 16,563 crore for the September quarter compared with Rs 17,394 crore in the same quarter last year. Street was expecting profit to fall 11-13 per cent drop in profit.

Total income sales for the quarter rose 0.8 per cent YoY to Rs 2,40,357 crore from Rs 2,38,797 crore in the corresponding quarter last year. This was in line with the Street expectations. Reliance said Jio Platforms reported a record profit for the September quarter at Rs 6,536 crore. Reliance Retail's PAT came in at Rs 2,935 crore.

Ambani said the quarter gone by reflected a robust growth in Digital Services and Upstream business. This helped partially offset weak contribution from O2C business that was impacted by unfavorable global demand-supply dynamics.

Growth in Digital Services was led by increased average revenue per user (ARPU) and improving customer engagement metrics, reflecting the strong value proposition of our services.

"The home broadband segment is witnessing accelerated momentum on the back of our unique industry-leading JioAirFiber offering. Jio’s broad spectrum of offerings enables it to digitally empower every village, town and city in India as well as the country’s small and medium scale enterprises, Ambani said.

Ambani said the digital services business continues to focus on -tech solutions on a national scale and is on track to deliver the benefits of artificial intelligence to all Indians.

"The retail segment continues to increase its consumer touchpoints and product offerings across physical and digital channels. The unique omni-channel retail model enables the business to service a wide range of requirements of a vast, heterogenous customer base," Ambani said.

The retail business continues to partner with renowned domestic as well as global players, expanding its basket of quality product offerings.

Ambani said his strengthening retail operations will help his company rapidly scale-up this business in the coming quarters and sustain its industry-leading growth momentum.

"The first of our New Energy Giga-factories is on-track to commence production of solar PV modules by the end of this year. With a comprehensive range of renewable solutions including solar, energy storage systems, green hydrogen, bio-energy and wind, the New Energy business is poised to become a significant contributor to global clean energy transition," he said.