Reliance Q1 Results | Consolidated Profit Jumps 46% YoY To Rs 17,955 Cr Driven By Refining Margin

Mukesh Ambani-led Reliance Industries Ltd (RIL) on Friday logged a 46.3 per cent year-on-year (YoY) rise in consolidated net profit of Rs 17,955 crore for the quarter ended June (Q1), which was, however, below Street expectations of 25,238.8 crore. According to analysts, cheaper Russian crude and strong demand for fuel boosted RIL’s refining margin at its dominant oil-to-chemical business.

RIL posted a 54.5 per cent YoY growth in consolidated revenue from operations to Rs 2.23 lakh crore, which was also below Street’s estimate of Rs 2.4 lakh crore.

RIL Chairman and Managing Director Mukesh Ambani in a press statement said, “Geo-political conflict has caused significant dislocation in energy markets and disrupted traditional trade flows. This along with resurgent demand has resulted in tighter fuel markets and improved product margins. Despite significant challenges posed by the tight crude markets and higher energy and freight costs, O2C business has delivered its best performance ever. I am also happy with the progress of our consumer platforms. In retail business, we continue to focus on enhancing our consumer touch-points and building a stronger value proposition for our customers. Our strong supply chain infrastructure and sourcing efficiency is helping us maintain competitive pricing for daily essentials, thereby insulating consumers from inflationary pressures.”

On the other hand, net profit of Reliance Jio, the telecom arm of RIL, increased 24 per cent to Rs 4,335 crore in the said quarter.

Ambani added, “Customer engagement on our Digital Services platform remains high. Jio is working towards expanding data availability for all Indians and I am pleased to see the positive trends in mobility and FTTH subscriber additions. Reliance is committed to invest in India’s energy security. Our New Energy business is forging partnerships with technology leaders in solar, energy storage solutions and the hydrogen eco-system. These partnerships will help us realise the vision of clean, green and affordable energy solutions for all Indians.”

RIL posted an operating Ebitda of Rs 3,897 crore ($493 million), up 180.4 per cent YoY with a 350-bps improvement in margin at 7.6 per cent compared to 4.1 per cent in the corresponding quarter of the previous year. This was led by higher contribution from fashion and lifestyle and consumer electronics and growing operating leverage with strong LFL growth over last year across consumption baskets.

In FY22, the company reported a 47 per cent growth YoY in the gross revenue. It was $104.6 billion or Rs 7.92 lakh crore. For Q4FY22, the consolidated gross revenue for the company stood at Rs 2.32 lakh crore, 35.1 per cent higher than the same quarter in the previous year.

The consolidated revenue of the firm constantly surged in FY22. In Q1FY22, the company recorded Rs 1.58 lakh crore revenue, 57.4 per cent higher than Q1FY21. In the next quarter, Q2FY22, the revenue surged to Rs 1.91 lakh crore. In Q3FY22, the consolidated revenue was recorded at Rs 2.09 lakh crore, 52.2 per cent higher than Q3FY21. In Q4FY22, RIL also announced a dividend of Rs 8 per equity share.

On Friday, RIL shares ended at Rs 2,502.90 apiece, up 0.62 per cent on the BSE.

Results Consolidated Numbers:

• Reliance posts record consolidated revenues at ₹242,982 crore ($30.8 billion), up 53% YoY
• Reliance posts record quarterly consolidated EBITDA at ₹40,179 crore ($5.1 billion), up 45.8% YoY
• Highest ever quarterly consolidated Profit Before Tax (PBT) at ₹27,236 crore ($3.4 billion), up 57.7% YoY
• Consolidated Net Profit for the quarter was ₹19,443 crore ($2.5 billion), higher by 40.8%
• EPS for the quarter was ₹ 26.6 per share, increased by 42.7%
• Reliance’s Exports for the quarter was ₹96,212 crore ($12.2 billion), higher by 71.3%
• RIL’s capital expenditure (including exchange rate difference) for the quarter ended 30th June, 2022 was ₹31,434 crore ($4.0 billion)

Jio Platforms

• Jio Platforms’ EBITDA for the quarter was ₹11,424 crore ($1.4 billion), increase of 28.5%
• Jio Platforms’ Net Profit for the quarter was ₹4,530 crore ($574 million), growth of 24.1%
• Reliance Jio ARPU during the quarter of ₹175.7 per month saw a healthy 26.9% growth on YoY basis and 4.8% growth on QoQ basis driven by residual impact of tariff hike and contribution from FTTH
• Reliance Jio Net subscriber addition witnessed a strong rebound to 9.7 million driven by continued strength in gross adds at 35.2 million; Total customer base as on 30th June 2022 of 419.9 million
• Reliance Jio average data and voice consumption per user per month increased to 20.8 GB and 1,001 minutes, respectively. Total data traffic at 25.9 bn GB was 27.2% up; Total voice traffic at 1.25 trillion mins was 17.2% up
• Jio continued to extend its leadership position in FTTH services with further acceleration in homes connected. Jio now has 7.0 million connected premises.

Reliance Retail

• Reliance Retail Gross Revenue for the quarter was ₹58,554 crore ($7.4 billion), higher by 51.9%
• Reliance Retail EBITDA for the quarter was ₹3,837 crore ($486 million), higher by 97.7%
• Reliance Retail Net Profit for the quarter was ₹2,061 crore ($261 million), higher by 114.2%
• Reliance Retail witnessed its first quarter without any operating disruptions since the onset of covid; Footfalls surpassed pre-COVID levels as consumers returned to stores
• Reliance Retail crossed a milestone of 200 million registered customers. The registered customer base stood at 208 million at the end of the quarter, up 29% YoY
• Reliance Retail opened 720 stores in the quarter, taking the total count to 15,916 stores with an area of 43.2 million sq ft covering all corners of the country
• Reliance Retail bolstered its supply chain capabilities with addition of 79 warehousing and fulfillment locations measuring 3.3 million sq ft of space during the quarter
• Reliance Retail Digital Commerce daily orders stood 66% up YoY; New Commerce merchant base stood 3x over last year
• Reliance Retail added over 17,000 jobs during the quarter; The total employee count stands at ~3,79,000.

Reliance O2C and Oil & Gas

• Reliance O2C had its best-ever quarterly performance with all-time-high revenue and EBITDA. Segment Revenues increased by 56.7% Y-o-Y to ₹161,715 crore primarily on account of higher crude oil and product prices.
• Reliance O2C EBITDA improved by 62.6% Y-o-Y to ₹19,888 crore on account of sharp rise in transportation fuel cracks and better volumes.
• Reliance Oil & Gas segment revenues increased by 183.0% Y-o-Y to ₹3,625 crore; Segment EBITDA jumped to ₹2,737 crore, due to improved realizations, and higher volumes.