RIL Q1FY23 results HIGHLIGHTS: Mukesh Ambani’s Reliance Industries reported 46 per cent on-year jump in net profit to Rs 17955 crore, missing estimates. Most analysts expected Reliance Industries to double its net profit. Last year in the April-June quarter, RIL had reported a net profit of 12,272 crore. RIL’s April-June revenue came in at Rs 2,23,113 crore, up 54.5% from a year ago. The company’s consolidated EBITDA came in at Rs 40,179 crore, up 45.8% on-year. The company posted highest ever quarterly revenue for O2C business in a volatile environment at Rs 1.61 lakh crore. RIL’s Mukesh Ambani said that despite significant challenges posed by the tight crude markets and higher energy and freight costs, O2C business has delivered its best performance ever. The business delivered its best-ever quarterly performance with all-time-high revenue and EBITDA. Ahead of RIL results, Reliance Jio posted a net profit of Rs 4,335 crore for the April-June quarter of the current financial year, rising 23 per cent from a year ago.
Mukesh Ambani’s Reliance Industries on Friday reported its fiscal first quarter consolidated net profit jumped 46% on-year to Rs 17,955 crore, falling way short of street estimates. RIL’s April-June revenue was at Rs 2,23,113 crore, up 54.5% from a year ago. Analysts had expected RIL to at least double its net profit from the year-ago period to about Rs 24,000 crore. Last year in the corresponding quarter, RIL had reported a net profit of about 12,300 crore. Company’s consolidated EBITDA came in at Rs 40,179 crore, up 45.8% on-year. Read full story
RIL retained its domestic credit ratings of “CRISIL AAA/Stable” from CRISIL and “IND AAA/Stable” from India Ratings and an investment grade rating for its international debt from Moody’s as “Baa2” and “BBB+” from S&P.
KGD6 Gas production during 1Q FY23 was at 40.6 BCF (RIL’s share) vis-à-vis 33.1 BCF (RIL’s Share) in 1Q FY22. Average gas price realized for KGD6 was at $9.72/MMBTU in 1Q FY23 vs $ 3.62/MMBTU in 1Q FY22
Segment Revenues for 1Q FY23 increased by 183.0% Y-o-Y to ₹ 3,625 crore. Segment EBITDA sharply increased to ₹ 2,737 crore. This was primarily due to improved gas price realization in KG D6 and CBM, and higher production in KG D6.
RIL Cracker operating rate was at 87% for 1Q FY23 on account of planned shutdown at Hazira (4Q FY22 – 99% and 1Q FY22 – 95%), which resulted in lower polymer production for the quarter.
RIL maintained high utilization levels across sites and units. Total throughput (including refinery) was 19.7 MMT, marginally higher than 1Q FY22
The business delivered its best-ever quarterly performance with all-time-high Revenue and EBITDA. Segment Revenues for 1Q FY23 increased by 56.7% Y-o-Y to ₹ 161,715 crore primarily on account of higher crude oil and product prices. Benchmark Brent crude average price was up 65% Y-o-Y to $ 113.9/bbl
Pharma business nearly doubled over last year on the back of stronger store performance as well as digital commerce platform.
The growth in JioMart Kirana orders is driven by increased merchant penetration and addition of region-specific assortment in commodities. Merchant base up 4x over last year as the business focused on onboarding HoReCa and institutions in addition to Kirana merchants
Urban Ladder has more than doubled its revenue over last year. The business strengthened its own brand portfolio with multiple new brand launches in customizable sofas ‘Create’ and recliners ‘LazeON’ and launched 2 home brands with each focusing on traditional ‘aara craft’ and contemporary designs ‘Gypsy Trunk’.
Reliance Jewels delivered a strong quarter with revenues up nearly 3x over last year driven by strong festive sales, wedding season and network expansion. Leveraging its design capabilities that it has built over time, the business launched 5 new collections during the quarter.
Reliance Retail consolidated its leadership position in Fashion & Lifestyle as it delivered a strong revenue growth of 3x over last year driven by regional festivities & promotions resulting in all time high average bill values and healthy conversions
Reliance Retail continues to strengthen its capabilities across businesses through acquisitions and partnerships. It has signed a master franchise agreement with GAP Inc., a leading American Fashion brand, Tod’s, an Italian luxury lifestyle brand and Pret A Manger, a fresh food & organic coffee chain.
The business posted an Operating EBITDA of Rs 3,897 crore ($ 493 million), up 180.4% on-yr with a 350-bps improvement in margin at 7.6% compared to 4.1% in the corresponding quarter of the previous year. This was led by higher contribution from Fashion & Lifestyle and Consumer Electronics and growing operating leverage with strong LFL growth over last year across consumption baskets.
Reliance Retail delivered a strong performance with its best-ever quarterly revenues in a macro environment that remained challenging. Gross Revenue was at ₹ 58,554 crore ($ 7.4 billion) for 1Q FY23, registering a growth of 51.9% Y-o-Y.
Reliance Retail business witnessed its first quarter without any operating disruptions since the onset of COVID.
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, says Mukesh Ambani
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, Mukesh Ambani said
Total 15,866 physical stores of Reliance Retail are operational; 792 stores opened during the April-June quarter of this fiscal
Reliance Retail's EBITDA for the quarter was at Rs 3,837 crore ($ 487 million), higher by 97.8%
Reliance Retail's gross revenue for the quarter was Rs 58,554 crore ($ 7.4 billion), higher by 51.9%.
RIL's EPS for the quarter was Rs 26.5 per share, increased by 40%
Reliance Industries' posted highest ever quarterly revenue for O2C business in a volatile environment at Rs 1.61 lakh crore
Mukesh Ambani's RIL consolidated EBITDA came in at Rs 40,179 crore, up 45.8% on-year.
RIL's April-June revenue was at Rs 223,113 crore, up 54.5% from a year ago.
Mukesh Ambani’s Reliance Industries reported 46 per cent on-year jump in net profit to Rs 17955 crore
We expect a consolidated EBITDA of INR424b (+81% YoY/+35% QoQ), fueled by growth in O2C, Jio and Retail segments. We project an EBITDA of INR255b (+123% YoY/+75% QoQ) for the O2C segment, and INR41b (+112% YoY/+11% QoQ) for the Retail segment.
Steady cash flow in O2C segment is expected to continue amid favourable global scenario and will enable RIL to invest in new energy verticals. ICICI Direct
On a year to date basis, RIL stock price has gained 4.12 per cent, and 19 per cent in the last one year.
In the upcoming quarterly results, the domestic brokerage firm expects Reliance Industries to report EBITDA of Rs 40,100 crore (+71% YoY; +28% QoQ), driven by all-time high refining margins, higher oil and gas price realisations, and continued growth in the retail business. “Consolidated PAT is estimated at INR 22,900 crore (+87% YoY, +41% QoQ). Petchem segment is likely to remain a drag,” HDFC Securities added.
Jio’s revenue from operations was at Rs 21,873 crore, coupled with other income of Rs 82 crore the firm reported a revenue of Rs 21,955 crore. This was up 21.9% from the year-ago period when the company reported a total income of Rs 18,008 crore.
Analysts at ICICI Direct Research said that the long term prospects and dominant standing of RIL in each of its product, and service portfolio, provide comfort for long term value creation. RIL’s consumer business will be the growth driver, going ahead. The company has a strong balance sheet while its traditional business will continue to generate steady cash flows amid a favourable global scenario. “We maintain our BUY rating on the stock,” it added.
ICICI Direct– EBITDA: Rs 47,108 crore; Net profit: Rs 27,909 crore
Emkay Global– EBITDA: Rs 42,166 crore; Net profit: Rs 25,504 crore
Yes Securities– EBITDA: Rs 44,318 crore; Net profit: Rs 28,891 crore
Motilal Oswal– EBITDA: Rs 42,400 crore; Net profit: Rs 24,400 crore
JM Financial– EBITDA: Rs 41,796 crore; Net profit: Rs 22,494 crore
Reliance Industries (RIL) share price ended 0.6% up at Rs 2,502.90 apiece on BSE ahead of its fiscal first-quarter results.
Mukesh Ambani’s Reliance Industries ltd (RIL) is expected to have continued its robust growth in the April-June quarter, this time helped by stronger refining profitability, better telecom ARPU, and growth in the retail segment. Domestic brokerage firms across Dalal Street have pinned net profit targets for the conglomerate in the range of Rs 23000-27909 crore, which would see RIL at least double its profits from the year-ago period. Reliance Industries will announce its fiscal first-quarter results on Friday, July 22. Read full story
Reliance Jio today reported a net profit of Rs 4,335 crore for the April-June quarter of the current financial year, rising 23% from a year ago, but missing street estimates. The telecom and operator’s standalone revenue for the quarter under review stood at Rs 21,955 crore. Analysts had expected the telco to post a net profit of around Rs 4,500 crore, aided by strong subscriber addition and growth in Average Revenue Per User (APRU). Read full story