RIL Q1 results: Profit drops 6% to Rs 18,258 cr; Rs 9 per share dividend announced

Oil-to-telecom major Reliance Industries Ltd (RIL) on Friday said its consolidated net profit for the June quarter fell 6.09 per cent year-on-year (YoY) to Rs 18,258 crore compared with Rs 19,443 crore in the corresponding quarter last year. Profit (attributable to the owners) came in at Rs 16,011 crore against Rs 17,955 crore, down 10.82 per cent YoY.  Analysts were largely expecting profit to fall anywhere between 8 per cent and 17 per cent.

Mukesh Ambani-led company said its consolidated revenue from operations declined 5.31  per cent YoY to Rs 2,10,831 crore from Rs 2,22,664 crore in the same quarter last year. Analysts were expecting a 2-8 per cent YoY drop in sales for the Mumbai-headquartered company.

RIL dividend at Rs 9 per share 

The company board declared a dividend of Rs 9 per share for FY23. This is against a dividend of Rs 8 per share (dividend yield 0.30 per cent) in FY22 and Rs 7 per share (dividend yield 0.35 per cent) in FY21.

"We shall inform you in due course the date on which the company will hold its Annual General Meeting for the year ended March 31, 2023 and the date from which dividend, if approved by the shareholders, will be paid or warrants thereof dispatched to the shareholders," RIL said.

Ebitda for the quarter rose 5.1 per cent YoY  to Rs 41,982 crore ($ 5.1 billion). Ebitda growth, RIL said, was led by consumer and upstream businesses, which offset decline in O2C earnings. O2C earnings were lower due to a sharp fall in fuel cracks from exceptionally high levels in Q1FY23.

"Higher subscriber base and customer engagement led revenue and profitability growth for Digital Services. Retail earnings reflect expanded footprint and improved profitability with operating leverage. Higher production and realisations contributed to growth in Oil & Gas Ebitda," RIL said.

What Mukesh Ambani says

Chairman and Managing Director, Mukesh Ambani said: “Reliance’s strong operating and financial performance this quarter demonstrates the resilience of our diversified portfolio of businesses that cater to demand across industrial and consumer segments. Jio’s wide range of quality offerings at affordable price points has enabled strong growth in subscriber base, which reflects in the financial performance of the digital services business. Accelerated roll-out of Jio’s True 5G services is propelling the nation’s digital transformation at an unprecedented pace."

Ambani said the retail business delivered robust growth, with fast-paced store additions and steady growth in footfalls. The contribution of Digital and New Commerce initiatives is scaling up, delivering value to consumers and providing synergistic benefits to merchant partners.

O2C business delivered a resilient performance despite continuing global macro headwinds. "Commencement of MJ field operations during the quarter will enhance India’s energy security, with total production from KGD6 block rising to ~30 MMSCMD in the coming months. The process of demerger of the financial services business – Jio Financial Services Limited – is on track with key approvals in place. I firmly believe that Jio Financial Services is uniquely positioned to
foster financial inclusion in India," Ambani said.

RIL Q1 results highlights 

RIL said its depreciation for the quarter jumped 31.7 per cent YoY to Rs 11,775 crore ($ 1.4 billion) due to expanded asset
base across all the businesses and higher network utilization in Digital Services business.

Finance costs was up 46 per cent YoY at Rs 5,837 crore ($ 711 million), primarily due to higher interest rates and loan balances.
Tax expenses stood at 6,112 crore ($ 745 million) in the June quarter and were lower YoY on account of lower deferred tax.

Reliance, Jio, Reliance Retail, O2C performance    

Earlier, in a separate release, RIL's telecom arm Reliance Jio Infocomm said its profit grew 12.2 per cent to Rs 4,863 crore in the June quarter from Rs 4,335 crore a year ago, led by subscriber additions. India's biggest telecom carrier by subscribers said revenue from operations rose 9.9 per cent to Rs 24,042 crore. The total income of Reliance Jio during the reported quarter rose to Rs 24,127 crore from Rs 21,995 crore a year ago.

 

Akash M Ambani, Chairman, Reliance Jio Infocomm Limited, said, “Jio continues to make rapid progress in rolling out its True5G network. Jio is on track to complete pan India 5G rollout before December 2023. The new JioBharat phone is another innovation by Jio combining network and device capabilities to help accelerate ‘2G-MUKT BHARAT’ vision and democratize internet. With these investments, Jio is embarking on a journey to accelerate growth momentum across connectivity and digital platforms over the coming years.

 

On Reliance Retail, Isha M Ambani, Executive Director at Reliance Retail Ventures Limited, said “I am delighted to share that our financial performance in the quarter has been resilient and aligned with our business goals. The sustained growth across consumption baskets has further consolidated our position as a market leader. We continue to innovate and invest in our stores and digital platforms to make shopping more engaging for our customers.

 

Ahead of its earnings, shares of Reliance Industries settle the day at Rs 2,536.20, down 3.19 per cent.