The largest company in India by market capitalization, Reliance Industries (RIL) on July 23 reported a June quarter profit at RS 13,806 Crore, up 66.7 percent year-on-year (yoy), with normalized tax conditions.
The income of oil-to-telecommunications conglomerate reaches Rs 1.44 lakh crore. However, numbers based on sequential impacts due to weakness in retail, said RIL.
Analyst polls carried out by CNBC-TV18 have expected profits at Rs 10,845 Crores and income at Rs 1.54 lakh Crore for Q1FY22.
The company posted a record of EBITDA consolidation for quarters reviewed at Rs 27,550 Crore, up 27.6 percent yoy and QoQ 3.6 percent on the performance of a powerful oil-to-chemical (O2C) digital service. The EBITDA consolidated margin grew 190 BPS QOQ to 17.3 percent.
EBITDA digital service stands at a record RS 9,268 Crore. Digital services saw a net addition of 14.3 million during the quarter, the company said
Cash profits before extraordinary goods for the quarter of Rs 21,828 Crore ($ 2.9 billion), up 56.7 percent.
EPS before the extraordinary item for the quarter of the Rs 19.0 per share, which increased by 46.7 percent.
“I am happy that our company has provided strong growth even though facing a very challenging operating environment caused by the second wave of covid pandemic. The results of the first quarter of TA22 clearly show the durability of a diverse business portfolio that serves a large part of the consumption basket,” said Mukesh Ambani, chairman and executive director, Reliance Industries.
The company added that the performance of oil-to-chemicals (O2C) and KG-D6 businesses increases offset retail weaknesses.
Oil-to-chemical (consolidation)
The Oil-to-Chemical (O2C) business was hit by lower domestic consumption reduced by exports in a higher margin, said RIL, added that restrictions related to Covid-19 and high crude oil prices could have an impact on demand and margins in the future.
The segment revenue for the quarter reached Rs 1,03,212 Crore, up 75.2 percent yoy, the statement noted.
EBITDA is Rs 12,231 Crore, up 49.8 percent YoY. It was a consecutive quarter of the growth of EBITDA sequentially. EBITDA Margin makes 60 BPS Qoq.
Jio platform (consolidation)
Revenue from operations for the quarter came at Rs 18,952 Crore, up 9.8 percent yoy.
Reliance Jio Q1 Results: Net Profit 39% YoY at Rs 3,501 Crore, EBITDA stands at RS 8,892 Crore
EBITDA increased by 21.3 percent YoY to Rs 8,892 Crore ($ 1.2 billion).
Net income for the segment reached Rs 3,651 Crore ($ 491 million), registering growth of 44.9 percent yoy.
The total customer base on June 30, 2021, stood at 44.06 crore, with a clean addition of 4.23 crore customers.
Arpu during the quarter stood at Rs 138.4 per customer per month while the total data traffic was 20.3 billion GB during the quarter, up 38.5 percent yoy.
Furthermore, traffic on the network of Jio across 20 exabytes and Jio Fiber now has more than 3 million houses connected, the company gets information.
The average house consumption of Jio fiber is almost 300 GB of data per month while the Top Box Top Jio Set (STB) has an average use of more than 5 hours a day, the company said.
Reliance Retail (Consolidation)
Revenue from operations reached Rs 33,566 Crore, up 19 percent YoY.
Net income jumped 123.2 percent yoy to Rs 962 Crore ($ 129 million). EBITDA for the quarter of the 1,941 crore rs ($ 261 million), higher by 79.9 percent.
A total of 12,803 physical stores operated during the quarter and 123 stores opened during the quarter.
The company further said retail footsteps were 46 percent of the pre-covid level during the quarter reviewed and consumer sentiment revived but they were still cautious.
Reliance Retail Q1 Results 2021 | Reliance Retail Reports Net Profit Rs 962 Crore For First Quarter
“Restrictions related to Covid on store operations during the quarter affect our retail business operations and profitability. This is a temporary phenomenon. We stay focused on ensuring equipment needs, Including food products, food ingredients, health & cleanliness through a combination of offline online channels, “said Mukesh Ambani, chairman of the company.
“We demand our efforts to create partnerships with small traders and digital involvement with consumers. This creates a newer and inclusive growth model. I am sure that retail business is ready to create exponential values and growth.”
In the 44th Annual General Meeting (GMS) on June 24 this year, Mukesh Ambani has made a number of announcements in the telecommunications, retail and O2C business segments.
