RIL Q2 Net Profit Up 46% To Rs 15,479 Cr; Revenues Up 49% As Demand Resumes To Pre-COVID Levels

Jio Platforms contributed Rs 3728 crore to the net profit, while Reliance Retail contributed 1675 crore to the net profits, accounting for over a third of the overall profits.

Mumbai: Mukesh Ambani-led Reliance Industries (RIL) reported a 46% jump in its second-quarter net profits to Rs 15,479 crore, led by oil and chemicals (O2C) business as demand resumed pre-COVID levels. The rise in profits was reported on a 49% jump in revenues to Rs 1,91,532 crore.

The O2C business contributed 58% growth in revenues to Rs 12,0475 crore, accounting for 62% of the total revenues and EBITDA of Rs 12,720 crore.

Revenue of O2C was driven by higher price realizations across product categories, underpinned by a 71% Y-o-Y increase in Brent Oil price.

Consumer-facing businesses Jio Platforms contributed Rs 3728 crore to the net profit, while Reliance Retail contributed 1675 crore to the net profits, accounting for over a third of the overall profits.

Commenting on the results, RIL chairman Mukesh Ambani said, "As the pandemic retreats, I am pleased that Reliance has posted a strong performance in 2Q FY22. This demonstrates the inherent strengths of our businesses and the robust recovery of the Indian and global economies. 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."

Jio Platform's gross revenue stood at  Rs 23,222 crore ($ 3.1 billion), higher by 15.2%. Reliance Jio's ARPU during the quarter of Rs 143.6 per subscriber per month, healthy 3.7% growth over the previous quarter.  

Reliance Jio's customer base as of September 30, 2021, stood at 429.5 million, a net addition of 23.8 million customers Yo-Y. Jio and Google are working together to make JioPhone Next available more widely in time for the Diwali festive season, said a company statement.

Reliance Retail recorded gross revenue of Rs 45,426 crore for 2Q FY22, a growth of 10.5% Y-o-Y and higher than the 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 by easing lockdowns and ramp-up of omni-channel offerings.

"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," Mr. Ambani added.
Exports from RIL's India operations increased by 59.0% to Rs  54,844 crore ($ 7.4 billion) as against Rs 34,501 crore in the corresponding quarter of the previous year, mainly due to higher price realizations despite lower volumes of downstream products.

As of September 30, 2021, RIL's outstanding debt stood at Rs 255,891 crore ($ 34.5 billion) against cash and cash equivalents of Rs  259,476 crore ($ 35.0 billion), making Reliance effectively a net-zero debt company.

Ahead of the results, RIL shares on BSE closed up marginally at Rs 2627.05 in a weak Mumbai market on Friday, valuing the company at Rs 16,66,428 crore, India's most valued.