Reliance Q1 FY23 Results: Posts record quarterly operating profits

Reliance Q1 Earnings: Net Profit jumped 46%, Revenue rose 55%
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Reliance Industries Q1 Results Highlights

Reliance Industries (RELIANCE) Q1  Revenue below estimates: Consolidated revenue from operations for the quarter increased 54.5% on-year to Rs 2.23 lakh crore from Rs 1.44 lakh crore, missing analyst estimates of about Rs 2.40 lakh crore. The revenue growth was aided by a robust increase in the top line of the company’s O2C business. The company saw the highest ever revenue for O2C business in a volatile environment.

Reliance Industries Q1 Profit misses estimates: Reliance Industries has reported a 46.29% on-year rise in net profit to Rs 17,955 crore, missing street estimates of Rs 24,311 crore. In the year-ago period, the net profit for the June quarter was Rs 12,273 crore.

Reliance Q1 Earnings Operating performance: Reliance reported record quarterly consolidated earnings before interest, tax, depreciation, and amortization (EBITDA) or operating profit at Rs 40,179 crore, up 45.80% year-on-year. EBITDA rose on the back of strong performance in the company’s consumer businesses (Retail and Jio). The margin for the quarter came in at 17.3%. This is against the analysts' projection of 17%.

RIL Q1 FY23 Debt & Cash: On a consolidated basis, the outstanding debt as of June 30, 2022, was Rs 2.63 lakh crore. Cash and cash equivalents stood at Rs 2.05 lakh crore. The company said its capital expenditure (including exchange rate difference) for the quarter was Rs 31,442 crore.

Reliance Q1 2022 Exports and Finance: Exports (including deemed exports) from RIL’s India operations increased by 71.3 % to Rs 96,212 crore as against Rs 56,156 crore in the corresponding quarter of the previous year mainly due to higher price realizations and higher volumes of transportation fuels. 

Finance costs increased by 17.7 % to Rs 3,997 crore as against Rs 3,397 crore in the corresponding quarter of the previous year. Higher finance costs are mainly due to an increase in interest rates and currency depreciation.

Segment Wise Performance

We have written a detailed blog on the various segments of Reliance Industries and their contribution to the overall revenues. Click here to know all about it.

Reliance Q1 2022 O2C performance: The O2C business of Reliance Industries posted its best-ever quarterly performance with all-time high revenue and EBITDA. For Q1FY23, the O2C segment reported revenue of Rs 1,62 lakh crore, a jump of 56.7% year on year. Even the segment EBITDA was up significantly to 62.6% YoY to Rs 19,888 crore on account of a sharp rise in transportation fuel cracks and better volumes. Total throughput (including refinery) was 19.7 million metric tonnes (MMT), marginally higher than 1Q FY22.

RIL Quarterly Earnings Oil & Gas performance: The revenue for this segment saw a massive growth of 183% year on year to Rs 3,625 crore. The EBITDA for the Oil and Gas segment also increased sharply to Rs 2,737 crore. It was due to improved gas price realization in KG D6 and CBM, and higher production in KG D6.

Reliance Q1 FY23 Retail: Q1FY23 was the first quarter where the retail business was not disrupted by Covid-19, the footfalls in its stores increased by 19% and were above pre-Covid levels as consumers returned to stores. The segment reported a 53.7% on-year rise in revenue from operations to Rs 51,582 crore in the June quarter.

The company reported that the total footfall in its stores was 17.5 crore for this quarter. In Q1FY23, due to increased footfalls and digital visits, the number of the transaction was 220 million, a growth of more than 60% over pre-Covid levels. The customer base stood at 208 million at the end of the quarter, up 29 percent YoY.

The retail arm continued to open new stores at a rapid pace. It opened 792 stores in the first quarter of the current financial year taking the total count to 15,866 stores and an area of 45.5 million sq ft. The company also continued to bolster its supply chain capabilities with the addition of 79 warehousing and fulfillment locations measuring 3.3 million sq ft of space added during the quarter.

Reliance Retail said its digital and new commerce grew more than twice over last year and contributed about 19% of gross revenue. The digital commerce platforms continue to grow from strength to strength with daily orders up 64% YoY.

Reliance Jio Q1 Earnings: Reliance Jio posted a 23.6% increase in revenues to Rs 27,527 crore. The net profit for the quarter was Rs 4,530 crore, up 24.1% on-year. EBITDA margin for the segment came in at 48.7%, up 176 bps YoY, led by an increase in ARPU. The average revenue per user (ARPU) for the quarter stood at Rs 175.70 against Rs 167.60 in the previous quarter. Year on year, the ARPU was up by 27%. 

The total data traffic for Jio was 25.9 billion GB during the quarter, rising 27.2% YoY. Total voice traffic was 1.25 trillion minutes during the quarter, a rise of 17.2% YoY. For the June quarter, the total customer base was Rs 41.99 crore.

Reliance Media business: The media business saw a decline in some numbers. Consolidated revenue rose 10.4% YoY to Rs 1,340 crore but high inflation created a challenging environment for advertising revenue. The company said operating costs jumped 26% led by increased investments in entertainment content and marketing. Consolidated EBITDA was Rs 46 crore, down 75.5% on a year-on-year basis. The operating margin was at 3.4%, down from 15.5% YoY.

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