India's largest company by market capitalisation, Reliance Industries (RIL) on July 23 reported June quarter profit at Rs 13,806 crore, up 66.7 percent year-on-year (YoY), with normalised tax provision.
The revenue of the oil-to-telecom conglomerate stood at Rs 1.44 lakh crore. However, the numbers on sequential basis were impacted due to weakness in retail, RIL said.
An analysts' poll done by CNBC-TV18 had estimated profit at Rs 10,845 crore and revenue at Rs 1.54 lakh crore for Q1FY22.
The company posted record consolidated EBITDA for the quarter under review at Rs 27,550 crore, up 27.6 percent YoY and 3.6 percent QoQ on strong oil-to-chemical (O2C) and digital services performance. Consolidated EBITDA margin grew 190 bps QoQ to 17.3 percent.
The EBITDA of digital services stood at a record Rs 9,268 crore. Digital services saw net additions of 14.3 million during the quarter, the company said.
Cash profit before exceptional item for the quarter was Rs 21,828 crore ($ 2.9 billion), up by 56.7 percent.
EPS before exceptional item for the quarter was Rs 19.0 per share, which increased by 46.7 percent.
"I am happy that our company has delivered robust growth despite facing a highly challenging operating environment caused by the second wave of the COVID pandemic. The results of the first quarter of FY22 clearly demonstrate the resilience of Reliance’s diversified portfolio of businesses that cater to large parts of the consumption basket," said Mukesh Ambani, Chairman and Managing Director, Reliance Industries.
The company added that its Oil-to-chemicals (O2C) business performance and KG-D6 ramp up offset retail weakness.
Oil-to-chemicals (consolidated)
The oil-to-chemical (O2C) business was hit by lower domestic consumption mitigated by exports at higher margins, RIL said, adding that COVID-19-related restrictions and high crude prices may impact demand and margins going forward.
The segment revenue for the quarter stood at Rs 1,03,212 crore, up 75.2 percent YoY, the statement noted.
EBITDA was Rs 12,231 crore, up 49.8 percent YoY. It was the fourth consecutive quarter of sequential EBITDA growth. EBITDA margins grew 60 bps QoQ.
Jio Platforms (consolidated)
Revenue from operations for the quarter came in at Rs 18,952 crore, up by 9.8 percent YoY.
Reliance Jio Q1 results: Net profit up 39% YoY at Rs 3,501 crore, EBITDA stands at Rs 8,892 crore
EBITDA increased 21.3 percent YoY to Rs 8,892 crore ($ 1.2 billion).
Net profit for the segment stood at Rs 3,651 crore ($ 491 million), registering a growth of 44.9 percent YoY.
The total customer base as on June 30, 2021, stood at 44.06 crore, with a net addition of 4.23 crore customers.
ARPU during the quarter stood at Rs 138.4 per subscriber per month while total data traffic was 20.3 billion GB during the quarter, up 38.5 percent YoY.
Further, Traffic on Jio's network crossed 20 Exabytes and Jio Fibre has now over 3 million connected homes, the company informed.
Jio Fibre average home consumption is almost 300 GB of data per month while Jio set top box (STB) has average usage of over 5 hours a day, the firm said.
Reliance Retail (consolidated)
Revenue from operations stood at Rs 33,566 crore, up 19 percent YoY.
Net Profit jumped 123.2 percent YoY to Rs 962 crore ($129 million). EBITDA for the quarter was Rs 1,941 crore ($ 261 million), higher by 79.9 percent.
Total 12,803 physical stores were operational during the quarter and 123 stores were opened during the quarter.
The company further said retail footfall was 46 percent of pre-COVID levels during the quarter under review and consumer sentiment is reviving but they are still cautious.
"COVID-related restrictions on store operations during the quarter impacted our retail business operations and profitability. This is a temporary phenomenon. We remained focused on ensuring supplies of necessities, including food, grocery, health & hygiene products through a combination of online-offline channels," said Mukesh Ambani, Chairman of the company.
"We stepped up our efforts in creating partnerships with small merchants and digital engagement with consumers. This is creating a newer and inclusive model of growth. I am confident that the retail business is poised to create exponential value and growth."
In its 44th annual general meeting (AGM) on June 24 this year, Mukesh Ambani had made a number of announcements across its telecom, retail and O2C business segments.
He had announced the launch of a new energy business in 2021 with the aim of bridging the green energy divide in India and the rest of the world.
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