RIL Q1 results: Net profit falls 7.25% YoY to Rs 12,273 crore

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Energy-to-telecom behemoth Reliance Industries (RIL) on Friday reported a 7.25% year-on-year fall in consolidated net profit at Rs 12,273 crore for the quarter ended June 30. It had reported a profit of Rs 13,233 crore in the same period last year. Consolidated total income increased by 57% YoY to Rs 1,48,591 crore.

The fall in net profit is attributable to a rise in total expenses which came at Rs 1,31,284 crore in Q1FY21 over Rs 87,406 crore in the same period last year.

Commenting on the results, Mukesh Ambani, chairman and managing director, Reliance Industries said, “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 FY2022 clearly demonstrate the resilience of Reliance’s diversified portfolio of businesses that cater to large parts of the consumption basket.”

“In our O2C business, we generated strong earnings through our integrated portfolio and superior product placement capabilities. Along with our partner bp, we commissioned the satellite cluster in KG D6 and continued to ramp up production, contributing to 20% of gas production in India. This will be a major contribution to our country’s energy security,” he added.

The company announced its results post-market hours. Earlier during the day, shares of the company settled 0.74% down at Rs 2105.20.

Jio Platforms

Consolidated net profit of Jio Platforms increased by 44.90% YoY to Rs 3651 crore. Revenue and EBITDA also grew by 9.8% YoY and 21.30% YoY to Rs 18952 crore and Rs 8892 crore, respectively.

“Jio has posted yet another record quarterly performance with the industry-leading operating metrics,” said Ambani. The average revenue per user (Arpu) came at Rs 138.4 per subscriber per month during the quarter. The customer base increased by 42.30 million YoY to 440.6 million as of June 30.

Reliance Retail

Reliance Retail delivered gross revenue of Rs 38,547 crores, up 21.9% YoY. On the other hand, EBITDA increased by 79.90% YoY to Rs 1,941. However, the figure declined by 46% on a quarter-on-quarter basis.

“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 and hygiene products through a combination of online-offline channels. 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,” said Ambani.

Oil to chemicals

Segment revenue for Q1FY22 increased by 75.2% YoY to Rs 1,03,212 crore primarily on account of the sharp increase in product prices on the back of higher crude prices. RIL further highlighted that O2C EBITDA for the June quarter improved by 49.8% YoY to Rs 12,231 crore on account of a rebound in transportation fuel cracks to 4-6 quarter highs.

Oil and Gas

Revenue from the oil and gas segment increased by 153.20% YoY to Rs 1,281 crore. EBITDA for the quarter grew sharply to Rs 797 crore. “This was primarily due to smooth ramp up of gas production from R-Cluster and commencement of production from SatCluster field in KG D6 block,” RIL said.