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Reliance Industries Q1 Results Fy22-2023

23 July 2022

The largest publicly traded company in terms of market capitalisation in India, Reliance Industries, announced its quarterly results for the first quarter of FY23 after market close on 22nd July 2022. Displaying robust operational and financial performance in the quarter, the company reported an impressive 46.3% YoY (year on year) increase in its profit after tax (PAT) to Rs. 17,955 crore in Q1 FY23 against Rs. 12,273 crore reported in Q1 FY22. 

The revenue from operations increased 54.54% YoY to Rs. 2.23 lakh crore in this quarter as against Rs. 1,44,372 crore in the same quarter of the previous year. 

EBITDA stood at Rs. 40,179 crore, showing growth of 45.8% YoY in Q1 FY23. The cash profit in the quarter is reported at Rs. 31,916 crore, an increase of 46.2% YoY.

The operating margin of RIL stood at 11.9% in this quarter, an increase from 10.4% in Q1 FY22. However, the net profit margin showed a marginal decline, falling to 8% in Q1 FY23 from 8.7% in Q1 FY22. 

Segment-Wise Performance of Reliance Industries in Q1 Result

Oil to chemicals

The performance can be broken down to excellent segment wise performance. The company declared this quarter to have the highest-ever quarterly revenue for the O2C business in a volatile environment, with its revenue up 56.68% YoY to Rs. 161,715 crore in Q1 FY23.

This was primarily on account of higher crude oil and product prices. Moreover, increased global oil demand due to strong demand recovery in Asia, improved air travel demand in Europe and US, alongside seasonal demand tail-ended the exceptional performance of this segment. 

Reliance Retail

RIL also reportedly showed the best-ever quarterly revenue for Reliance Retail (up by 51.88% YoY) as well as for Jio Platforms (up by 23.6% YoY). The retail segment’s performance was enhanced due to increased consumer spending as the Covid-19 situation abated, though sentiments remained cautious due to inflationary concerns. Additionally, the business expanded its presence across geographies by adding 792 more stores in the country and increasing its digital presence.

Jio Platforms

As for Jio Platforms, the net subscriber addition witnessed a strong rebound to 9.7 million. The total data traffic increased 27.2% YoY and the total voice traffic increased 17.2% YoY.

The basic earnings per share (EPS) in the quarter was Rs. 26.54, a 39.98% increase from Q1 FY22. The RIL share closed in the green at Rs. 2,502.95 ahead of the results, up 0.67% from the previous day closing at the end of the trading session.

Segment-wise revenue

  • Oil to Chemical (O2C) Business: Revenue up 56.68% YoY to Rs. 161,715 crore in Q1 FY23 from Rs. 103,212 crore in Q1 FY22.
  • Oil & Gas: Revenue up 182.98% YoY to Rs. 3,625 crore in Q1 FY23 from Rs. 1,281 crore in Q1 FY22.
  • Retail: Revenue up 51.88% YoY to Rs. 58,569 crore in Q1 FY23 from Rs. 38,563 crore in Q1 FY22.
  • Digital Services: Revenue up 21.83% YoY to Rs. 28,511 crore in Q1 FY23 from Rs. 23,403 crore in Q1 FY22.
  • Financial Services: Revenue down 44.35% YoY to Rs. 271 crore in Q1 FY23 from Rs. 487 crore in Q1 FY22.
  • Others: Revenue up 28.37% YoY to Rs. 15,522 crore in Q1 FY23 from Rs. 12,092 crore in Q1 FY22.

Hits of Reliance Industries Q1 Results 2023

  • Revenue from operations increased 54.54% YoY to Rs. 2,23,113 crore.
  • Profit after tax (PAT) increased 46.3% YoY to Rs. 17,955 crore.
  • EBITDA of the company stood at Rs. 40,179 crore, jumping by 45.8% YoY. 
  • Cash profit stood at Rs. 31,916 crore, growing by 46.2%.
  • Highest ever quarterly revenue (up 56.68% YoY) for the O2C business in a volatile environment.
  • EPS was Rs. 26.54, a 39.98% increase from Q1 FY22.

Misses of Reliance Industries Results

  • Net profit margin fell marginally to 8% in Q1 FY23 from 8.7% in Q1 FY22.

What does the management say about Q1 Result of Reliance Industries

Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries Limited said, “Geopolitical conflict has caused significant dislocation in energy markets and disrupted traditional trade flows. This along with resurgent demand has resulted in tighter fuel markets and improved product margins. Despite significant challenges posed by the tight crude markets and higher energy and freight costs, O2C business has delivered its best performance ever. 

I am also happy with the progress of our Consumer platforms. In Retail business, we continue to focus on enhancing our consumer touch-points and building a stronger value proposition for our customers. Our strong supply chain infrastructure and sourcing efficiency is helping us maintain competitive pricing for daily essentials, thereby insulating consumers from inflationary pressures. 

Customer engagement on our Digital Services platform remains high. Jio is working towards expanding data availability for all Indians and I am pleased to see the positive trends in mobility and FTTH subscriber additions. 

Reliance is committed to invest in India’s energy security. Our New Energy business is forging partnerships with technology leaders in solar, energy storage solutions and the hydrogen eco-system. These partnerships will help us realize the vision of clean, green and affordable energy solutions for all Indians.”

Other things to know about Reliance Industries Q1 Results

  • During the quarter ended June 30, 2022, the company reported that there was no significant impact of COVID-19 on the company’s operations.

To read the RA disclaimer, please click here
Research Analyst: Bavadharini KS

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