On a consolidated basis, Reliance Industries (RIL) reported 43% increase in net profit to Rs 13,680 crore on 49.84% rise in net sales to Rs 174,104 crore in Q2 September 2021 over Q2 September 2020.
Profit before tax (PBT) rose 18.64% to Rs 19,234 crore in Q2 September 2021 over Q2 September 2020. EBITDA rose 30% year-on-year to Rs 30,283 crore in Q2 September 2021. With reopening and revival in economic activity, all businesses contributed positively to EBITDA growth, RIL said in a statement.
Finance cost decreased by 37.2% to Rs 3,819 crore as against Rs 6,084 crore in the corresponding quarter of the previous year. Lower finance costs reflect large paydown of debt and other liabilities.
Outstanding debt as on 30 September 2021 was Rs 255,891 crore. Cash and cash equivalents as on 30 September 2021 were at Rs 259,476 crore.
Commenting on the results, Mukesh D. Ambani, chairman and managing director, RIL said: Reliance has posted a strong performance in 2Q FY22. All our businesses reflect growth over pre-COVID levels. Our operational and financial performance reflects sharp recovery in the retail segment and sustained growth in Oil-to-Chemicals (O2C) and Digital Services business. Our O2C business benefited from sharp recovery in demand across products and higher transportation fuel margins. Reliance Retail continues to grow on the back of rapid expansion of both physical stores and digital offerings resulting in healthy growth in revenues and margin expansion. Jio, Our digital services business continues to transform the broadband market in India and set new benchmarks for the industry.
"We continue to make steady progress in accelerating our foray into New Energy and New Materials business. I am now even more confident of achieving our ambitious target of Net Carbon Zero by 2035."
CONSOLIDATED JIO PLATFORMS
Net profit for the quarter grew 23.5% to Rs 3,728 crore. Gross revenue for the quarter was Rs 23,222 crore, higher by 15.2% (adjusted for IUC). EBITDA stood at Rs 9,294 crore, increase of 16.6%. EBITDA margin stood at 47%, increased 390 bps Y-o-Y led by IUC related adjustment and underlying operating leverage in connectivity business.
Total customer base as on 30 September 2021 of 429.5 million, net addition of 23.8 million customers. ARPU during the quarter of Rs 143.6 per subscriber per month. Total data traffic was 23 billion GB during the quarter, a 50.9% growth.
CONSOLIDATED RELIANCE RETAIL
Reliance Retail delivered a strong performance with consolidated gross revenue recorded at Rs 45,426 crore for 2Q FY22, a growth of 10.5% Y-o-Y and higher than Pre-COVID period. Revenue excluding petro retail business grew at 16% Y-o-Y.
Retail segment revenues were boosted by improved operating hours and footfalls with easing of lockdowns and ramp-up of omni-channel offerings.
Net profit for the quarter was Rs 1,695 crore, higher by 74.2%. The business posted an EBIDTA of Rs 2,913 crore, rising 45.2% Y-o-Y driven by favorable revenue mix, continued focus on cost management and investment income. EBITDA margin expanded by 180 bps Y-o-Y driven by strong operating leverage.
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 reach of JioMart was extended to 249 cities with the launch of new stores and fulfilment centers. The platform sustained its performance across leading operating parameters led by compelling value proposition, wider reach and intuitive customer experience.
Kirana business recorded robust growth in revenue supported by increase in assortment andscale up in service capabilities. Kirana partnerships rose to 20x over last year.
Pharma business continues to grow strength to strength and commissioned 423 new stores during the quarter.
CONSOLIDATED OIL TO CHEMICALS (O2C)
Segment revenue for 2Q FY22 increased by 58.1% Y-o-Y to Rs 120,475 crore primarily due to improved realization on the back of increase in oil prices and higher volumes.
Segment EBITDA for 2Q FY22 improved by 43.9% Y-o-Y to Rs 12,720 crore primarily on account of better transportation fuel cracks, higher intermediates product deltas, efficient product placement and yield management.
EBITDA margin for the quarter declined by 100bps Y-o-Y to 10.6%. This was primarily due to base effect driven by higher feedstock and product prices.
Refinery throughput for 2Q FY22 was at 17.1 MMT, an increase of 11.8% over 2Q FY21.
CONSOLIDATED OIL AND GAS (EXPLORATION & PRODUCTION)
Segment revenues for 2Q FY22 increased by 363% Y-o-Y to Rs 1,644 crore. Segment EBITDA increased by 34% Q-o-Q to Rs 1,071 crore. This was primarily due to increase in the production from KG D6 block & US Shale and increase in price realization.
The combined average production from KGD6 Block was over 18 MMSCMD during the quarter.
MEDIA BUSINESS
Revenue from operations rose 30.7% Y-o-Y to Rs 1,387 crore during 2Q FY22. EBITDA for the quarter jumped up 52.4% Y-o-Y to Rs 253 crore. Both news and entertainment businesses further improved their profitability with operating margin at 18.2%.
RIL's activities span hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, retail and digital services.
Shares of RIL rose 0.15% to Rs 2627.05 on Friday (22 October 2021).
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