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Reliance Industries Limited Posts a 42% Rise in Profits for Q3 FY22

24 May 2022

Reliance Industries Ltd. posted a 42% rise in net profit to Rs 18,549 crores from Rs 13,101 crores reported in the same quarter in the previous financial year. Consolidated revenues were reported at Rs 1.95 lakh crore, up ~52% year-on-year (YoY). The company’s EBITDA was recorded at Rs 28,700 crore in Q3 FY22, with EBITDA margin reported at a comfortable 14.8%.

Vertical segments posted very strong numbers with the oil-to-chemicals business reporting revenue of Rs 1.31 lakh crore vs. Rs 83,838 YoY. Retail segment delivered an impressive net profit of Rs 2,259 crores. Jio Platform, the telecom business of the giant, reported a revenue of Rs 24,176 crores, with net profits from the same coming at Rs 3,795 crores. Also, the ARPU improved to Rs 151.6 from ~ Rs.138, YoY.

Highlights

  • The oil to retail giant posted a 42% increase in PAT, at Rs. 18,549 crores. 
  • EBITDA was recorded at Rs. 28,700 crores
  • Exports rose 105.3% to Rs. 64,781 crores
  • Added over 80,000 people to the workforce in the last 9 months  
  • Finance costs decreased by 11.9%
  • Reliance Retail delivered a land quarter with the highest ever EBITDA and revenue figures. 

Segment-wise highlights 

Jio Platforms Limited (JPL) 

  • The gross revenue for the quarter of this vertical for the quarter was Rs 24,176 crores,  higher by 13.8% YoY
  • EBITDA for the quarter increased by 18% YoY coming in at Rs 10,008 crores  
  • Net Profit for the quarter stood at Rs.3,795 crores growing  8.9% YoY
  • The total customer base for the quarter ended December came at 421.0 million, a net addition of 10.2 million customers
  • ARPU for the quarter was recorded at  ₹151.6 per subscriber per month 

Reliance Retail 

  • The gross revenue for the quarter was Rs. 57,714 crores, up 52.5% 
  • EBITDA for the quarter stood at Rs. 3,822 crores, an increase of 23.8% 
  • Net Profit for the quarter was recorded at  Rs. 2,259 crores, up 23.4% 
  • A total of 14,412 physical stores were operational; 837 stores opened right during the quarter 
  • Area of operation increased to 40.0 million sq. feet vs. 31.2 million sq. feet in the corresponding quarter of the previous year

Oil to chemicals (OTC)

  • Revenue increased by 56.8% Y-o-Y to  Rs. 131,427 crores on account of an increase in crude oil prices and higher volumes
  • EBITDA was reported at Rs. 13,530 crores, up 38.7% YoY because of better transportation fuel cracks and higher polyester chain delta

Oil and gas (Exploration and production)

  • Revenues increased a whopping 494% YoY to Rs. 2,559 crores
  • EBITDA showed a sharp increase to Rs. 2,033 crores, with an EBITDA margin of 79.4%. due to the ramp-up in gas production from KG D6 and improved price realization

Media business 

  • Revenue from operations increased 16.5% YoY to Rs. 1,657 crores, strongly driven by growth in ad revenues 
  • EBITDA rose  15.1% YoY to Rs. 373 crores, EBITDA margins increased 22.5% as the profitability of the news business saw a sharp improvement while the entertainment business delivered strong margins despite the increase in original content and high production value impact properties

From the Chairman 

Mukesh D. Ambani, Chairman, and Managing Director, Reliance Industries Limited, stated that he was happy to announce that Reliance has posted its best-ever quarterly performance in 3Q FY22 with a strong contribution from all businesses. Both consumer businesses, Retail and Digital services, have recorded the highest ever revenues and EBITDA. 

He further added that during this quarter, RIL continued to focus on strategic investments and partnerships across our businesses to drive future growth. Retail business activity has normalized with strong growth in key consumption baskets on the back of the festive season and as lockdowns eased across the country. Digital services business has delivered broad-based, sustainable, and profitable growth through improved customer engagement and subscriber mix. 

The recovery in global oil and energy markets supported strong fuel margins and helped the O2C business deliver robust earnings. RIL is making steady progress towards achieving its vision of Net Carbon Zero by 2035. The recent partnerships and investments in technology leaders in the solar and green energy space are illustrative of the company’s commitment to partner India and the World in the transition to clean and green energy. Lastly, the company will continue to pursue growth initiatives and collaborate with global leaders who share their vision of a sustainable future for the planet.”

Other things to know about Reliance Industries

  • Reliance Jio has prepaid Rs. 30,791 crores, clearing all deferred spectrum liabilities acquired in an auction prior to March 2021.
  • Reliance Industries signed an MoU for an investment of Rs. 5.95 lakh crores in green energy and other projects in Gujarat.
  • Dunzo raised $240 million in a round led by Reliance Retail.
  • Jio-bp and Mahindra Group signed an MoU for EV and carbon solutions.
  • TA’ZIZ and Reliance launched a strategic joint venture for a $2 billion chemical project in Ruwais.
  • Iconix – Reliance JV in India acquired Lee Cooper IP rights
  • RNESL and Denmark’s Stiesdal A/S signed a corporate agreement to collaborate on technology development and manufacturing of HydroGen Electrolyzers in India. 
  • Reliance Industries is a Fortune 500 company and the largest private-sector corporation in India with verticals across energy, refining, retail, entertainment, etc. RIL’s current market capitalization stands at Rs.16,76,292 crores, trading at a P/E of 32.4. The company has significantly reduced debt and delivered ROCE and ROE at 8.19% and 7.8%, respectively. Stock price CAGR for one year stands at 18%.

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