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