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Reliance Industries, one of the largest Indian conglomerates, reported its second quarterly results on 22nd October 2021. The much-awaited results once again beat all industry estimates as the company recorded impressive growth and profitability. 

The consolidated net profit reportedly jumped 43% YoY from Rs.9567 crores reported last year for the September quarter to Rs.13,680 crores this year. 

The consolidated revenue from operations increased 48% YoY from Rs.1.16 lakh crores to Rs.1.74 lakh crores. The growth in the revenue was attributed to a low base and the recovery of RIL’s refining and retail business which were hampered by the pandemic’s effects last year. In the Oil-to-Chemicals segment, the revenue increased 58% YoY on the back of a recovery in the demand of products and a higher transportation fuel margin.

The consolidated operating profit jumped 30% YoY and stood at Rs.30,283 crores.

Reliance Jio Infocomm, the flagship telecommunications unit of RIL reported a 23.5% YoY increase in net profits which rose from Rs.3019 crores to Rs.3728 crores. The ARPU (Average Revenue Per User) during the July-September 2021 quarter was reported at Rs.143.60. 

The company’s consolidated EBITDA stood at Rs.26,020 crores this quarter compared to Rs.23,368 crores last quarter.

Hits 

  • 43% YoY growth in net consolidated profit YoY and an 11.4% jump sequentially
  • 48% YoY jump in the consolidated revenue from operations 
  • The growth in the different verticals of the company were recorded as below –
  • 58% YoY growth in the revenue from O2C segment, which grew from Rs.76,184 crore to Rs.1.2 lakh crores.
  • 12% YoY increase in the refinery output which was reported at 17.1 MMT
  • 23% YoY increase in the net profit of Reliance Jio, from Rs.3019 crores to Rs.3728 crores. The ARPU of Jio also increased 3.7% sequentially to stand at Rs.143.6/subscriber/month
  • Jio added a total of 35.6 million subscribers over the July-September 2021 quarter which was the highest in the last seven quarters
  • 9% YoY increase in Reliance Retail’s revenue, from Rs.36,566 crores to Rs.39,926 crores.
  • In the media business, sales increased by 31% YoY to amount to Rs.1387 crores and the operating profit increased 52% YoY
  • Increase in the consolidated operating profit by 30% YoY. The profit amounted to Rs.30,283 crores.

Management comments 

Mukesh Ambani, the Chairman of RIL, said the results show the growth of the business above the pre-COVID levels. Moreover, the company’s operational and financial performance shows a sharp recovery in the retail sector and sustained growth in the Oil –to – Chemicals (O2C) and digital services business.

He also said that the company aims to make steady progress in accelerating its foray into the New Energy and New Materials Business. The company’s partnership approach and the desire to bring the country to the forefront of the global transition to the clean and green transition is underscored by its partnerships with some of the best companies. He believes that the company is well-poised to achieve its ambitious target of Net Carbon Zero by the year 2035. 

RIL in the news

Besides the industry expectations about RIL’s quarterly results, Reliance also made news as it entered into partnerships with leading companies internationally. Reliance acquired stakes in the following companies in the international markets –

  • REC Solar
  • Ambri
  • NexWafe
  • S & W Solar

Reliance’s retail arm, Reliance Retail entered into a master agreement with 7-Eleven Inc. for launching 7-Eleven convenience stores in India.

The company also achieved the market capitalisation of Rs.18 lakh crores recently becoming the first company on the stock exchange to do so. 

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