Billionaire Mukesh Ambani’s Reliance Industries Ltd reported on Friday that net profit rose in the quarter ended March on the back of lucrative refining profits, solid growth in telecom and digital services and strength in retail. up 22.5%.
The oil to retail to telecom conglomerate’s consolidated net profit rose to Rs 16,203 crore from Rs 13,227 crore in the quarter ended March 31, 2022, the company said in a statement.
However, net profit fell 12.6% quarter-on-quarter, breaking six consecutive quarters of quarter-on-quarter improvement.
Reliance’s earnings also rose on rising broadband subscriptions, online retail gaining traction and new energy investments taking root.
Consolidated revenue of the nation’s largest company by market capitalization rose 35% yoy to Rs 232 crore in 4QFY22.
For the full 2021-22 fiscal year (April 2021-March 2022), Reliance reported a net profit of Rs 60,705 crore on revenue of Rs 792 crore ($102 billion).
It is the first Indian company to surpass $100 billion in revenue in a year.
The company reported its highest ever quarterly EBITDA (earnings before interest, tax, depreciation and amortization) at Rs 33,968 crore, up 28% year-on-year.
O2C (Petrochemicals) business EBITDA rose 25% to Rs 14,241 crore, while digital services EBIT of Rs 11,209 crore was up 25% from last year.
The consumer business now accounts for nearly 45% of segment EBITDA.
Russia’s conflict with Ukraine has accelerated an already tight supply and demand situation for crude and oil products, leading to cracks or higher margins in gasoline and diesel.
Better revenue per user (ARPU) and debt refinancing boosted telecom and digital unit Jio’s net profit by about January to March, despite a lower subscriber base due to phasing out inactive subscribers/SIM consolidation over the past two quarters, Up 24% to Rs 4,173 crore.
Reliance Jio’s consolidated net profit rose about 23% to Rs 14,854 crore in the financial year ended March 31, 2022.
The retail sector has grown from strength to strength, supported by multiple additional acquisitions, continued investment in building complementary offline-to-online infrastructure, and post-pandemic momentum recovery.
The company has invested more than $1 billion to acquire Reliance Retail’s assets and building capabilities, and has opened more stores in second- and third-tier cities.
After a tepid 4-5 years, progress at the green energy-related Giga plant and reinvigorating the upstream sector provides a recipe for strong growth over the next 24-36 months.
The petrochemicals segment’s performance was tempered by weaker margins in the petrochemicals segment due to higher crude oil prices and lower international margins on key products.
But the company, which announced it had no net debt during the pandemic, borrowed more than cash in the fourth quarter of the fiscal year. Refinancing liabilities on telecom spectrum brought its total debt to Rs 266,305 crore, exceeding the cash balance of Rs 231,490 crore.
Reliance operates in four business verticals – the O2C business including its oil refineries, petrochemical plants and fuel retail businesses; retail businesses with brick-and-mortar stores and e-commerce; digital services covering telecommunications sector Jio; and new energy businesses.
Reliance Retail Ventures Ltd’s EBITDA rose 2.4% to Rs 3,705 crore on improved demand across categories. Net profit for the retail business fell 4.8% to Rs 2,139 crore in the quarter.
It opened 793 new stores during the quarter, bringing its total to 15,196.
Operating profit in the O2C segment increased sequentially for the seventh consecutive quarter, supported by improved refining margins and prices.
Digital division Jio Platforms reported a 23% rise in net profit to Rs 4,313 crore as average revenue per user (ARPU) in the telecom unit rose to Rs 167.6 crore per month, up 21.3%.
Its customer base was 410 million, down from 421 million in the previous quarter, mainly driven by SIM consolidation.
Commenting on the results, Mukesh D Ambani, chairman and managing director of Reliance Industries Limited, said: “Despite the ongoing challenges of the pandemic and heightened geopolitical uncertainty, Reliance delivered a strong performance in the 2021-22 financial year.” Although digital services and retail The sector has shown strong growth, but despite the volatility in the energy market, the O2C business has proven its resilience and demonstrated a strong recovery.
“Our relentless focus on customer satisfaction and service has boosted engagement and foot traffic, driving strong revenue and earnings figures in our consumer business.
“The gradual reopening of the economy, coupled with continued high utilisation across sites and improvements in transport fuel margins and volumes, have enhanced our O2C earnings,” Mr Ambani said.
During the year, Reliance created a large number of jobs and added more than 210,000 new employees across businesses.
“Our retail business has surpassed the benchmark of 15,000 stores,” he said. “JioFiber is now India’s largest broadband provider within two years of its launch. Oil and gas business now contributes 20% of domestic gas production.” On the new energy side, he said the company is moving forward with the development of the 5,000-acre Giga in Jamnagar factory complex and is on track to achieve net carbon zero by 2035.
For the full financial year, the total consumer business revenue was close to Rs 300 crore, while the consumer business EBITDA was over Rs 50,000 crore. Retail EBITA was over Rs 12,000 crore and revenue was close to Rs 200 crore. Digital Services EBITDA was Rs 40,000 crore on revenue of Rs 100 crore.
The O2C business contributed 52% of the incremental EBITDA in FY22. O2C EBITDA was Rs 52,722 crore, up 38% YoY and close to pre-COVID levels.
(Apart from the title, this story was unedited by NDTV staff and was posted from a syndicated feed.)