Reliance Industries (RIL), on Friday, missed estimates by reporting a consolidated net profit of Rs 12,273 crore for April-June quarter, down 7.3% on a year-on-year basis. The company’s consolidated revenues during the period at Rs 1.4 lakh crore, was up 58.2% y-o-y, slightly behind Bloomberg consensus estimates.
Earnings before interest, taxes, depreciation and amortisation (Ebitda) for the quarter was Rs 23,368 crore, up by 38.5% annually as Ebitda for Jio Platforms increased 21.3% to Rs 8,892 crore and retail Ebitda rose 79.9% to Rs 1,941 crore. Ebitda for RIL’s oil to chemical business improved by 49.8% annually to Rs 12,231 crore while its gas production business unit reported an Ebitda of Rs 797 crore against a negative Ebitda of Rs 32 crore in Q1FY21.
The company’s expenses increased 50.2% annually to Rs 1.3 lakh crore. The expenses would have been higher, further dragging down profits, if RIL’s finance cost had not dropped 49.6% y-o-y to Rs 3,397 crore in Q1FY22, after the company achieved a net debt free balance sheet in FY21. RIL’s profit in Q1FY21 included an exceptional gain of Rs 4,966 crore.
“Covid-related restrictions on store operations during the quarter impacted our retail business operations and profitability,” Mukesh Ambani, chairman and managing director of RIL said. RIL’s retail store expansion was constrained during the quarter, and it could open 123 new stores taking the total count to 12,803. More than 700 stores are in the pipeline, and will be commissioned as curbs are lifted, the company said. “The results of the first quarter of FY2022 clearly demonstrate the resilience of Reliance’s diversified portfolio of businesses that cater to large parts of the consumption basket,” Ambani added.
The revenue from the oil and gas business surged 153.2% y-o-y to Rs 1,281 crore, mainly due to ramp up of gas production from R-Cluster and commencement of production from SatCluster field in KG D6 block. The combined production from these two fields is now more than 18 million standard cubic metre per day, contributing to 20% of gas production in India.