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RIL Results: Reliance Industries Quarterly Results Q2 (2021-22), News & Earnings

RIL Results: Reliance Industries Quarterly Results Q2 (2021-22), News & Earnings

Last updated: 23 Oct, 2021 | 01:42 pm

RIL Results: Reliance Industries Quarterly Results Q2 (2021-22), News & Earnings

Revenue beats estimates: Consolidated revenue from operations for the quarter increased 48% on-year to Rs 1.74 lakh crore, beating analyst estimates of about Rs 1.60 lakh crore. The growth in revenue was aided by a low base and a recovery in the company’s refining and retail business. In the dominant Oil-to-Chemicals (O2C), revenues rose sharply by 58% YoY to Rs 1.20 lakh crore from Rs 76,184 crore in the last year period, mainly on account of sharp increase in product prices on the back of higher crude prices in the Jul-Sep 21 period. The table below shows segment-wise gross revenues for Reliance Industries. 

Profit beats estimates: Reliance Industries has reported a 43% on-year rise in net profit to Rs 13,680 crore, beating street estimates.  The beat in bottomline was aided by strong topline growth across businesses. Notably, all the major segments have now posted growth over pre-Covid levels. Reliance Industries saw a sharp recovery in the retail segment and sustained growth in Oil-to-Chemicals (O2C) and its digital services business.

Resilient operating performance: Reliance reported record quarterly consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) or operating profit at Rs 30,283 crore, up 30% year-on-year. EBITDA rose on the back of strong performance in oil-to-chemical (O2C) and digital services performance. The EBITDA margin contracted marginally to 19.4% from 19.9% in the previous quarter.. 

Reliance Q2 results highlights:

Reliance O2C performance: The O2C business of Reliance Industries posted a strong show for the quarter as revenues jumped 58% YoY to Rs 1.20 lakh crore. The segment’s operating profit soared 44% year-on-year to Rs 12,720 crore aided by strong show from the petrochemical business. O2C business benefited from favorable margins, feedstock and energy cost optimisations during the quarter. Further, stronger global demand was another important tailwind. This segment contributed about 40% to the company’s overall EBITDA. 

Reliance Jio posts resilient performance: Reliance Jio’s net profit missed estimates, as it posted a tepid 2.1% YoY growth in net profit to Rs 3,524 crore. Analysts had earlier estimated net profit of about Rs 3,700 crore. Reliance Jio’s  telecom business reported quarterly operating revenue at Rs 18,735 crore, a growth of 4.1% QoQ (adjusted for interconnection usage charge or IUC), driven by continued subscriber traction in the connectivity business. Reliance jio’s average revenue per user (ARPU) rose to Rs 143.6 per subscriber, up 4% from the previous quarter. Customer base as on 30th Sep 2021 increased to 429.50 million (42.95 crore), net addition of 23.8 million (2.38 crore) customers from last year. Total data traffic was 23.0 billion GB during the quarter; up 51% Y-o-Y.

Reliance Retail: Reliance Retail's revenue rose 19% YoY above 40 thousand crore during the quarter. The segment’s operating profit soared 45.2% YoY to Rs 2,913 crore with margins improving 180 basis points on-year to 7.3%. Net profit of the retail arm of Reliance Industries Ltd. increased 76% sequentially to Rs 1,695 crore in the quarter ended September. Digital and new commerce made up 20% of total sales. Reliance Retail, which operates retail formats across consumer electronics, fashion and lifestyle, grocery and pharma, added 813 stores in Jul-Sep 21 quarter taking total store counts to 13,635

The quarter saw robust growth across all consumption baskets led by strong revival in consumer sentiments amid festivities, relaxations in COVID related curbs and vaccinations.  The business re-established growth momentum in Fashion & Lifestyle with sales closing above pre-COVID levels. Consumer Electronics and Grocery have also maintained strong growth momentum.

Reliance Industries quarterly results review

Reliance Industries has posted a healthy set of numbers for the Jul-Sep 21 period. The company’s O2C as well as Retail business delivered a strong operating performance, offsetting the miss on Reliance Jio’s numbers. The quarter was significant, as businesses surpassed their pre-Covid levels aided by revival in consumption ahead of the festive season as fell as further reopening of the economy. Notably, footfalls in retail have recovered to 78% of pre-pandemic levels compared to 46% in Q1. 

As it stands today, the future growth and the roadmap of the company is oriented towards its consumer businesses (Reliance Retail, Jio and Jio Platforms). As the economy improves further, Reliance Industries would continue to see improvement in its business in the upcoming quarters.