RIL Q1 results: Consolidated net profit rises 67% to Rs 13,806 cr
Mumbai: Reliance Industries Ltd reported a consolidated net profit of ?13,806 crore for the first quarter, up 66.7% from ?8,282 crore a year ago. The increase amounts to 4.2% after including exceptional items that took the bottom line for the first quarter last year to ?13,248 crore.
Total consolidated revenue amounted to ?1.59 lakh crore in the June quarter, up 57.4% from the same period a year ago, when the top line had taken a hit due to the nationwide lockdown. A Bloomberg poll had pegged consolidated net profit at ?13,200 crore on revenue of ?1.46 lakh crore.
“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,” said chairman and MD Mukesh Ambani.
O2C Offsets Retail Impact
Adjusted for ownership in subsidiaries, net profit for the quarter attributable to the shareholders declined 7.3% to ?12,273 crore from ?13,233 crore.
Sequentially, RIL reported close to an 8% decline in both revenue and profit due to disruptions caused by the second wave of the Covid-19 pandemic, particularly in the retail business.
Ahead of the results, the company’s share closed 0.74% down on the BSE at ?2,105.20.
Higher realisations in the oil-to-chemicals (O2C) business and the KG-D6 ramp-up helped offset the impact of the retail business on overall performance.
“In our O2C business, we generated strong earnings through our integrated portfolio and superior product placement capabilities,” Ambani said. “Covid-related restrictions on store operations during the quarter impacted our retail business operations and profitability.”
RIL said gross debt was ?2.54 lakh crore at the end of June against ?2.52 lakh crore in March. Cash and cash equivalents stood at ?2.58 lakh crore on June 30, against ?2.54 lakh crore in the preceding quarter.
“We have a very strong balance sheet and have strong cash-flow generating businesses, which will help us in our growth initiatives and to drive long-term value,” joint chief financial officer V Srikanth said in a virtual press briefing.
The company’s biggest and core business, O2C, reported revenue of Rs 1.03 lakh crore in the June quarter, up 75.2% on year, boosted by a sharp increase in product prices on the back of costlier crude.
Operating profit in the business rose 49.8% to ?12,231 crore.
“In the O2C business, we see a very strong growth in demand and we are seeing that reflected in transportation margins, which are four to six-quarter high,” Srikanth said. “We are also seeing strength in downstream chemicals.”
Jio Platforms Ltd’s net profit rose 44.9% from a year ago, driven by strong mobile phone subscriber additions and higher data consumption.
JPL’s net profit rose to ?3,651 crore from ?2,519 crore a year ago. Quarterly revenue rose to ?18,952 crore from ?18,278 crore in the March quarter and ?17,254 crore a year ago.
“ARPU (average revenue per user) for 1QFY22 was ? 138.4, with improved subscriber mix and better seasonality being offset by Covid impact,” the company said. “During 1QFY22, average data consumption per user per month increased to 15.6 GB, while average voice consumption was at 818 minutes per user per month.”
Reliance Retail reported a consolidated net profit of ?962 crore for the first quarter, 123.2% up from a year ago. Revenue rose to ?38,563 crore from ?31, 633 crore on the back of strong growth in apparel and footwear.
The management said that store operations were disrupted through the quarter due to Covid-19 restrictions. They operated for 70%, 25% and 38% of normal working hours during April, May and June, respectively.
Store expansion was constrained during the quarter, with 123 stores being opened, taking the total count to 12,803.
“Another 700+ stores in the pipeline will be commissioned as curbs are lifted,” the company said.
The Economic Times 26-07-2021