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Reliance Q1 net profit jumps 46% on-yr to Rs 17995 crore, falls short of 100% growth estimate; revenue up 54%

Reliance Industries Q1FY2023 Results: 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.

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Ahead of Reliance Q1 results, Reliance Jio posted a net profit of Rs 4,335 crore for the quarter under review, up 23% 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. Ahead of RIL results, Reliance Jio posted a net profit of Rs 4,335 crore for the quarter under review, up 23% from a year ago. Reliance shares closed at Rs 2,502, up 0.62% on BSE.

Highest ever revenue for O2C biz, aided by a tight global energy market

RIL’s cash profit stood at Rs 31,916 crore, up 46.2% on-year, while the margin for Apr-Jun quarter came in at 17.3%.The strength in RIL’s June quarter performance came from the refining and petrochemical segment. The quarter saw the highest ever revenue for O2C business in a volatile environment, aided by a tight global energy market. The segment reported 56.7% on-year growth in revenues to Rs 1.6 lakh crore aided by strong gross refining margins in the international market. The operating performance was strong as operating profit jumped 62.6% on-year to Rs 19,888 crore. “The embargo by the European Union on Russian oil products, higher gas to oil switching, strong travel demand and lower product inventory levels resulted in tight fuel markets,” RIL said.

Retail revenue jumps 51% as footfalls in stores increase

The first COVID-19 restriction-free quarter helped RIL’s organised retail business to grow significantly as footfalls improved even though high inflation capped performance. It was the best quarter for Reliance Retail in terms of revenues, which stood at Rs 58,554 crore, up 51.9% on-year. “Consumer spending got a boost as families indulged in leisure activities, socializing, festivities and shopping as COVID situation improved though sentiments remained cautious due to inflationary concerns,” RIL said. Footfalls were recorded at 175 million for the June quarter, higher by 19% from pre-COVID levels as consumers returned to stores. Retail vertical’s operating profit jumped 180.4% on-year to Rs 3,897 crore, aided by a low base of the year-ago quarter, which was disrupted by second wave of the pandemic.

Jio operating profit rises 28.5% on healthy subscriber addition

Jio Platforms, which houses RIL’s telecom operations, reported a 23.8% on-year growth in revenue from operations to Rs 23,467 crore. Net subscriber addition rebounded to 9.7 million in the June quarter, driven by continued strength in gross additions at 35.2 million and reduced SIM consolidation impact, the company said. Average revenue per user (ARPU) saw 4.8% sequential rise as the company benefited from the tariff hikes undertaken last year. The segment’s operating profit jumped 28.5% on-year to Rs 11,424 crore on healthy subscriber addition and realisations.

Reliance Industries’ exports for the quarter stood at Rs 96,212 crore, up 71.3%, while capital expenditure (including exchange rate difference) for the quarter came in at Rs 31,434 crore. Meanwhile, revenues for oil & gas segment rose 183% on-year to Rs 3,625 crore. The segment’s Ebitda jumped to Rs 2,737 crore, led by improved gas price realisation in KG D6 and CBM, and higher production in KG D6.

Geopolitical conflict caused significant disruption, RIL committed to invest in India’s energy security: Ambani

Chairman and Managing Director Mukesh Ambani said, “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. 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.”

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