Reliance Industries Q4 FY22 Results
Reliance Industries posted its Q4 FY22 results on May 6, 2022. On a year on year (YoY) basis, the profit after tax (PAT) was up 24.5% to Rs 16,203 crore from Rs 13,227 crore in the year-ago period. The company reported a 13% quarter on quarter (QoQ) dip in its consolidated profit after tax. The dip in the company’s QoQ net profit was attributed to a dip in the company’s other income and increasing expenses.
Its market capitalisation on the stock exchanges recently crossed the Rs 17 lakh crore benchmark.
The company’s cost of materials consumed in the quarter under review was up 23.6% QoQ, 68.7% YoY to Rs 1.12 lakh crore. There was a significant jump in RIL’s depreciation and amortization expenses as well.
Reliance Industries‘ revenue from operations was up 10% QoQ to Rs 2.11 lakh crore in the quarter under review from Rs 1.91 lakh crore in the previous quarter. The revenue from operations was up 36.7% YoY to Rs 2.11 lakh crore from Rs 1.54 lakh crore in the corresponding quarter in the previous financial year.
In Q4 FY22, RIL’s operating margin was down to 10.1% from 10.6% in the previous quarter, but up from 9.5% in the year-ago period. The company’s net profit margin was clocked in at 7.7% against 9.8% in Q3 FY22 and 8.7% in Q4 FY21.
The company’s board of directors recommended a dividend of Rs 8 per equity share. RIL’s scrip closed in the red at Rs 2,620.65 after a dip of 0.77% at the end of the intraday trading session on May 6, 2022, ahead of the company’s fourth-quarter results.
Highlights
- PAT up 20% YoY to Rs 18,021 crore from Rs 14,995 crore in the year-ago period
- Revenue from operations up 10% QoQ, 36.7% YoY to Rs 2.11 lakh crore in the quarter under review
- Total income up 9.7% QoQ, 35% YoY to Rs 2.14 lakh crore in Q4 FY22
- EBITDA for FY22 came in at Rs 1.25 lakh crore, up by 28.8%
Misses
- PAT down 12.2% QoQ which came in at Rs 18,021 crore against Rs 20,539 crore in the previous quarter
- Operating margin down to 10.1% from 10.6% in the previous quarter
- Net profit margin down to 7.7% against 9.8% in Q3 FY22 and 8.7% in Q4 FY21
- Cost of materials up 23.6% QoQ, 68.7% YoY to Rs 1.12 lakh crore in the quarter under review
- Other income down by 39% QoQ, 24% YoY to Rs 2,457 crore in the quarter under review
Segment-wise revenue
- Oil to Chemical (O2C) Business: Revenue up 44.2% YoY to Rs 1.45 lakh crore from Rs 1.01 lakh crore in the year-ago period
- Oil & Gas: Revenue up 136.7% YoY to Rs 2,008 crore from Rs 848 crore in the year-ago period
- Retail: Revenue up 23.2% YoY to Rs 58,019 crore from Rs 47,085 crore in the year-ago period
- Digital Services: Revenue up 20% YoY to Rs 27,196 crore from Rs 22,628 crore in the year-ago period
- Financial Services: Revenue up 10.7% YoY to Rs 525 crore from Rs 474 crore in the year-ago period
- Others: Revenue up 16.7% YoY to Rs 23,774 lakh crore from Rs 20,364 crore in the year-ago period
What the Management says
Commenting on the results, Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries Limited said: “Despite the ongoing challenges of the pandemic and heightened geopolitical uncertainties, Reliance has delivered a robust performance in FY 2021-22. I am pleased to report strong growth in our Digital Services and Retail segments. Our O2C business has proven its resilience and has demonstrated strong recovery despite volatility in the energy markets. Over the past year, we added over 2.1 lakh, new employees, across our businesses with our consumer and technology business creating a large part of these new jobs.”
Reliance Jio Results
A subsidiary of Reliance Industries and telecom giant, Reliance Jio reported a 24.2% YoY jump in its standalone PAT which came in at Rs 4,173 crore from Rs 3,360 crore in the year-ago period. The revenue is up 20% YoY to Rs 17,358 crore while the EBITDA margin was at 50.3%. The company’s operating margin was up 27.5% from 25.7% in the year-ago period. Reliance Jio’s ARPU (Average Revenue Per Unit) came in at Rs 167.6 per month.
Other things to know about RIL
- JioFiber is now the largest broadband provider in India within two years of its launch
- Reliance is developing a New Energy Giga Factories complex across 5,000 acres in Jamnagar
- The deal between Reliance Industries and Future Retail fell through late last month
- RIL’s P/E ratio is at 36.39 against the industry average of 18.97.
- The company’s P/B ratio is at 2.24 against the industry average of 1.79.
- Reliance Industries’ dividend yield is at 0.26% against the industry average of 1.84%
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Research Analyst: Bavadharini KS