Reliance Industries Limited on July 22 reported a 46.3 percent year-on-year rise in consolidated net profit of Rs 17,955 crore for the quarter ended June, which was below analysts’ expectations of 25,238.8 crore.
The oil-to-telecom giant reported a 54.5 percent on-year 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.
“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,” said Chairman and Managing Director Mukesh Ambani in a press statement.
RIL reported a 45.8 percent year-on-year rise in consolidated operating profit to a record high of Rs 40,179 crore for the quarter ended June.
Refining and Petrochemical
The strength in the company’s June quarter performance came from the refining and petrochemical division which posted its highest ever quarterly revenue aided by a tight global energy market.
The segment reported 56.7 percent on-year growth in revenues to Rs 1.6 lakh crore aided by strong gross refining margins in the international market.
“Despite significant challenges posed by the tight crude markets and higher energy and freight costs, O2C business has delivered its best performance eve,” Ambani said.
The operating performance of the segment was strong as operating profit jumped 62.6 percent on-year to Rs 19,888 crore.
The embargo by the European Union on Russian oil products, higher gas to oil switching, strong travel demand and lower product inventory levels resulted in tight fuel markets, RIL said.
Oil & Gas
The vertical performed strongly in the June quarter with revenues rising 183 percent on-year to Rs 3,625 crore aided by higher administered gas prices for the domestic market.
The company said that KGD6 gas production during the June quarter was at 40.6 billion cubic feet as against 33.1 billion cubic feet in the year-ago quarter. Average gas price realized by RIL for KGD6 gas was at $ 9.72 per mmBtu as against $3.62 per mmBtu in the year-ago quarter.
The segment’s operating profit soared 243.4 percent on-year to Rs 2,737 crore largely because of higher volumes and realisations in the quarter.
Jio Platforms
The consumer technology business, which houses the telecom operations, reported a 23.8 percent on-year growth in revenue from operations to Rs 23,467 crore.
Net subscriber addition witnessed a strong rebound to 9.7 million in the June quarter driven by continued strength in gross additions at 35.2 million and reduced SIM consolidation impact, the company said.
Average revenue per user saw 4.8 percent sequential rise to Rs 175.7 as the company benefited from the tariff hikes undertaken last year.
The segment’s operating profit jumped 28.5 percent on-year to Rs 11,424 crore on healthy subscriber addition and realisations.
Reliance Retail
The first COVID-19 restriction free quarter helped RIL’s organised retail business to thrive as footfalls improved even though ongoing inflationary environment capped performance.
The segment reported a 53.7 percent on-year rise in revenue from operations to Rs 51,582 crore in the reported quarter. “Consumer spending got a boost as families indulged in leisure activities, socializing, festivities and shopping as COVID situation improved though sentiments remained cautious due to inflationary concerns,” RIL said.
RIL said that footfalls were recorded at 175 million for the June quarter, which was 19 percent above pre-COVID levels as consumers returned to stores.
The segment’s operating profit jumped 180.4 percent on a year-on-year basis to Rs 3,897 crore aided by a low base of the year-ago quarter, which was disrupted by second wave of the COVID-19 pandemic.
Reliance Retail’s operating margisn improved sharply to 7.6 percent in the reported quarter from 4.1 percent in the year ago quarter and 7.1 percent in the previous quarter.
The strong demand environment and expansion of store saw net profit of the retail segment rise 114.2 percent on a year-on-year basis to Rs 2,061 crore in the reported quarter.
Earlier today, shares of RIL ended 0.7 percent higher at Rs 2,502.95 on the National Stock Exchange.
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