RIL Q4 Results Highlights: Mukesh Ambani’s Reliance Industries Ltd. (RIL) announced its quarterly results today where the revenue from operations of the company came in at Rs 2.11 lakh crore, up 36% from the year-ago period. Net profit of the company stood at Rs 16,203 crore, a jump of 22.4%. Oil to chemical business, the cash-cow of the RIL emipre shown brightly in the quarter with a revenue of Rs 1.45 lakh crore. Reliance Retail continued to grow with revenue coming in at Rs 58,019 crore. Jio has already reported revenue of Rs 20,901 crore, up 20.5% from the previous year. Reliance Industries reported a consolidated EBITDA of Rs 33,493 crore in the January-March quarter. In the financial year ending March 31, 2022, RIL revenue stood at Rs 7.92 lakh crore, crossing $100 billion.
Domestic oil demand for 4QFY22 increased by 3.1% on-year. This was led by Jet Fuel and gasoline. Demand for these products increased by 6.5% and 1.4% respectively. Demand for diesel remained flat on a Y-o-Y basis.
“Jio has conducted extensive 5G field trials across eight states testing comprehensive suite of products including M-MIMO, Macro, Outdoor & Indoor Small Cell. Peak user throughput achieved was over 1.5Gbps in these trials. Multi-vendor interoperability and interworking has also been verified,” RIL said.
“I am pleased to report that our Retail business has crossed the 15,000 store benchmark. JioFiber is now the largest broadband provider in India within two years of launch. Oil and Gas business is now contributing 20% of domestic gas production,” said Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries Limited.
RIL said that the annual revenue for the retail business reached nearly Rs 2 lakh crore in the financial year ending March 2022. JioMart has strengthened subscription model through the integration of Milkbasket with daily orders growing by 100% as compared to last year.
Jio's total data traffic was 24.6 billion GB during the quarter; 47.5% growth on-year. Total voice traffic was 1.2 trillion minutes during the quarter; 16.8% growth over the last year.
“I am particularly happy with the progress our Company is making in the New Energy and New Materials business. We are forging ahead with the development of our New Energy Giga Factories complex across 5,000 acres in Jamnagar. And with the strong global partnerships we have, I am confident that Reliance will create sustainable and affordable new energy solutions for India to help her meet growing energy needs, while ensuring that we achieve our ambitious target of Net Carbon Zero by 2035,” said Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries Limited.
“Domestic retail prices of petrol & diesel prices have not increased in line with rising international prices. This has led to under-recoveries since Feb 22 for the entire fuel retailing industry including our joint venture, Jio-bp. Under-recoveries adversely impacts both the existing operations and the appetite to invest in the sector.,” said RIL.
The oil to chemical business of Reliance Industries was back in action in the January-March quarter, reporting a revenue of Rs 1.45 lakh crore up 44.2% from the previous year. Segment EBITDA stood at Rs 14,241 crore with EBITDA margin at 9.8%.
Reliance Retail continued to bolster its store network. RIL said the retail unit opened 793 stores and added 3.1 million sq ft of warehousing and fulfillment space during the quarter. The business more than doubled its daily orders on year on year across all its digital commerce platforms on the back of stronger product portfolio and attractive offers.
Reliance Retail revenue for the quarter stood at Rs 58,017 crore, up 23.3% from the previous year. “Reliance Retail delivered its best-ever quarterly revenues even surpassing the festive quarter performance despite the challenges posed by the spread of Omicron wave and coming out from the festive quarter,” RIL said.
Jio's net profit for the quarter was Rs 4,313 crore, higher by 22.9% from the previous year.
Reliance Jio said that its total customer base as on 31st March 2022 stood at 410.2 million. ARPU during the quarter was Rs 167.6 per subscriber per month, which was up 21.3% on-year basis and 10.5% on-quarter.
Reliance Industries' Board of Directors has recommended a dividend of Rs 8 per fully paid up equity share of Rs 10 each for the financial year ended March 31, 2022. This payment of dividend is subject to approval of members of the Company at ensuing Annual General Meeting of the Company.
In the financial year ending March 31, 2022, RIL revenue stood at Rs 7.36 lakh crore.
RIL posted record consolidated PAT (after exceptional items) for the year at Rs 67,845 cr, up 26.2% on-year
Reliance Industries posted record consolidated EBITDA at Rs 125,687 crore ($16.6 billion), up 28.8% on-year.
Oil to chemical business revenue stood at Rs 1.45 lakh crore while retail revenue was at Rs 58,019 crore.
The revenue from operations of the company came in at Rs 2.11 lakh crore, up 36% from the year-ago period.
Reliance Industries Ltd has reported a 22.4 per cent on-year jump in net profit to Rs 16,203 crore in the January-March quarter of the financial year 2022.
Oil to chemical business revenue stood at Rs 1.45 lakh crore against Rs 1.01 lakh crore a year ago.
Oil to gas business came in at Rs 2,008 crore up from Rs 848 crore.
Retail revenue was at Rs 58,109 crore, up from Rs 47,085 crore.
Digital Services revenue was at Rs 27,196 crore, up from Rs 22,628 crore.
The continuance of corona virus (COVID-19) pandemic globally and in India is causing significant disturbance and slowdown of economic activity. The Group’s operations and revenue were impacted due to COVID-19. During the year ended March 31, 2022, there is no significant impact of COVID-19 on the operations of the Group.
Reliance Industries reported a net profit of Rs 16,203 crore in the January-March period, up 22.4% from the year-ago period.
ICICI Securities sees limited upside from CMP and reinitiate coverage on the stock with an ADD rating and a TP of Rs 2,960/sh.
Reliance Industries is likely to release earnings for Q4FY22 at 8PM
RIL has the potential to double consolidated EBITDA by FY24E vs FY19 levels and net earnings growing 2.3x over the same period. However, valuations have kept pace, with current PER and EV/EBITDA of 18x FY24E PER and 10.5x EV/EBITDA comfortably above 5-year averages. ICICI Securities
Reliance Retail now has around 40 million sqft area under it, which is ahead of peers and comparable to global giants. Further, the partnership with Facebook-WhatsApp is seen as another lever for growth. ICICI Securities
RIL’s current multiples of 18x FY24E PER/ 10.5x EV/EBITDA and 1.8x P/BV put it comfortably in the top tier of most global peers in the energy space, according to analysts at ICICI Securities. “While we are strongly optimistic about the prospects of the green energy business as well as the strong momentum being seen in the OTC segment over the next 12-18mths, we believe current multiples are at a “zero things can go wrong” scenario, one which we do not find tenable,” they added. With an ‘ADD’ rating, RIL has a target price of Rs 2,960 per share, implying a 13.75% upside from today’s lows.
Goldman Sachs estimates a 7% on-quarter growth in EBITDA for Reliance Industries. “This would be the seventh quarter of sequential improvement. In the current quarter refining and telecom would drive growth with some offsets from petchem. Telecom will see benefits from the tariff hike towards the end of last quarter while refining will see tailwinds from a significant improvement in March which would persist next quarter as well,” they said. The brokerage firm has a target price of Rs 3,200 per share on RIL.
~ Morgan Stanley
As on 31st March 2022, Reliance Jio has total outstanding Commercial Papers amounting to Rs 17,837 crore (net of discount).
In recent months, global energy sector has been volatile with a succession of events around the world rocking the stability of supply, demand fluctuations and pricing trends. ICICI Securities said that the recent trend in pricing could support a sharp boost to OTC earnings over FY23-24E. “Our estimates suggest that against GRMs for FY20 of US$8.9/bbl (last full reporting year when RIL disclosed GRMs), FY22/23/24E can see GRMs of US$7.9/11.9/12.0 per bbl, respectively, supporting earnings materially,” ICICI Securities said.
Morgan Stanley expects Reliance Industries to report a tepid quarter with 5% EBITDA and 4% earnings growth on-quarter. “Telecom could continue to see pressure from declining subscribers, though most of last year’s tariff hikes will filter into profits starting F4Q22. Consumer retail should see steady growth with rising store count despite some inflationary pressure,” analysts said.
Reliance Jio reported a revenue of Rs 76,977 crore in the 12-months that ended in March 2022. This was an improvement, when compared to Rs 69,888 crore Jio managed in the financial year 2021.
Reliance Jio posted 24% increase in standalone profit after tax to Rs 4,173 crore for the quarter ended March 2022. The company had registered a profit after tax (PAT) of Rs 3,360 crore in the same period a year ago, the company said in a filing.
Reliance Jio reported a 20.25% on-year growth in Januar-March quarter. Jio revenue came in at Rs 20,901 crore.
Mukesh Ambani’s Reliance Industries Ltd (RIL) may report sombre earnings for January-March quarter earnings due to a drag on its telecom business, shifting investor focus back on the energy vertical – the company’s traditional mainstay. The energy business could have come to the rescue for RIL in the fiscal fourth quarter, with refinery margins doubling on the back of tighter energy markets, said analysts at Morgan Stanley. The multi-year earnings upgrade cycle is still fully in play, according to analysts who have RIL stock as their top pick with a target price of Rs 2,926 per share, up 10.8% from Thursday’s closing price of Rs 2,640.75per share.