RIL Q1 net profit up 46% at Rs17,955 cr; revenue jumps 57% to Rs2,43,999 cr
25 July 2022
Reliance Industries (RIL) on Friday reported a consolidated net profit of Rs17,955 crore for fiscal first quarter ended 30 June 2022 (Q1), up 46.3 per cent over the year-ago period.
The oil-to-telecom and retail group’s gross sales for the quarter stood at Rs2,43,999 crore, up 53 per cent over the year-ago period. Excluding goods and services tax and excise duty, net sales surged 56.7 per cent year-on-year (YoY) to Rs2,19,000 crore for the quarter.
RIL’s consolidated revenues and earnings before interest, tax, depreciation and amortisation (Ebitda) were the highest ever on a quarterly basis.
Consolidated profit before interest, depreciation and tax (Pbidt) for Q1 2022-23 jumped 45.9 per cent YoY to Rs40,244 crore.
“Geopolitical 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 (oil to chemicals) business has delivered its best performance ever. I am also happy with the progress of our consumer platforms (retail and digital),” Mukesh Ambani, chairman and managing director, RIL, stated in a release,
RIL’s other income, however, fell sharply by 46.7 per cent to Rs2,247 crore from Rs4,219 crore a year ago. Tax for the quarter increased by 125 per cent to Rs7,793 crore from Rs3,464 crore a year ago.
Reliance’s O2C business had its best-ever quarterly performance with an all-time high revenue and earnings before interest, tax, depreciation and amortisation. O2C revenue increased by 56.7 per cent YoY to Rs1,61,000 crore, primarily on account of higher crude oil and product prices.
The O2C Ebitda improved by 62.6 per cent YoY to Rs19,888 crore on account of a sharp rise in transportation fuel cracks and better volumes, the company said in an earnings call.
Jio Platforms’ Ebitda for the quarter stood at Rs11,424 crore, showing an increase of 28.5 per cent over the corresponding period of the previous fiscal, while net profit grew 24.1 per cent to Rs4,530 crore.
Jio’s net subscriber addition witnessed a strong rebound to 9.7 million. Its customer base as on 30 June stood at 419.9 million.
Reliance Retail’s net profit for Q1 rose 114.2 per cent YoY to Rs2,061 crore, while its Ebitda increased 97.7 per cent to Rs3,837 crore in the same period. The country’s largest retailer’s cash profit for the quarter rose 105.2 per cent to Rs2,873 crore.
Reliance Retail said it delivered its best-ever quarterly gross revenue at Rs58,554 crore, up 51.9 per cent YoY as the pandemic-led demand surge continued unabated.
Also, according to the company, “Consumer spending got a boost as families indulged in leisure activities, socialising, festivities and shopping as Covid situation improved though sentiments remained cautious due to inflationary concerns.”
Footfalls at the stores also rose 19 per cent above pr-pandemic levels to 175 million for the quarter, as consumers returned to stores, it added.
Total transactions, including digital, increased to 220 million in the quarter, showing a growth of more than 60 per cent over pre-Covid levels.
RIL’s consolidated gross debt stood at Rs2,63,000 crore at the end of Q1, and the company spent Rs31,442 crore as capital expenditure during the quarter. Net debt increased to Rs57,655 crore at the end of June 2022 from around Rs30,000 crore at the end of March 2022.
On the new energy businesses, Ambani said: “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 realize the vision of clean, green and affordable energy solutions for all Indians.”