Reliance Q2FY22 results: RIL net profit jumps 11% to Rs 13,680 cr, beats street estimate

Reliance Retail completed the acquisition of Milkbasket, a subscription-based grocery delivery platform, Portico, India’s leading home styling solutions brand and JustDial, a leading local search engine platform, bolstering its offering to the customers and adding value to merchant partners.

The business re-established growth momentum in Fashion & Lifestyle with sales closing above preCOVID levels. Consumer Electronics and Grocery maintained strong growth momentum.

Reliance Retail delivered a strong performance with consolidated Gross Revenue recorded at Rs 45,426 crore for 2Q FY22, a growth of 10.5% YoY and higher than Pre-COVID period. Revenue excluding Petro retail business grew at 16% YoY

Quarterly operating revenue (net of GST) was Rs19,777 crore ($ 2.7 billion), growth of 15.1% adjusted for IUC, driven by continued subscriber traction in connectivity business. 

We continue to make steady progress in accelerating our foray into New Energy and New Materials business. Our partnership approach and the desire to bring India to the forefront of global transition to clean and green transition is underscored by our recent investments in some of the best companies in the world in the solar and green energy space. Mukesh Ambani

Our O2C business benefited from sharp recovery in demand across products and higher transportation fuel margins. Reliance Retail continues to grow on the back of rapid expansion of both physical stores and digital offerings resulting in healthy growth in revenues and margin expansion. Jio, Our digital services business continues to transform the broadband market in India and set new benchmarks for the industry. Mukesh Ambani

As the pandemic retreats, I am pleased that Reliance has posted a strong performance in 2Q FY22. This demonstrates the inherent strengths of our businesses and the robust recovery of the Indian and global economies. All our businesses reflect growth over pre-COVID levels. Our operational and financial performance reflects sharp recovery in the retail segment and sustained growth in Oil-to-Chemicals (O2C) and Digital Services business, Mukesh Ambani said.

Reliance Retail net profit for the quarter stood at 1,695 crore, higher by 74.2%

Reliance Retail gross revenue for the quarter was Rs 45,426 crore, higher by 10.5%

Reliance Jio's total customer base as on 30th September 2021 stood at 42.95 crore, net addition of 2.4 crore customers. ARPU during the quarter of Rs 143.6 per subscriber per month

Reliance Jio net profit for the quarter came in at Rs 3,728 crore, growth of 23.5%

Reliance Jio's Gross Revenue for the quarter was Rs 23,222 crore, higher by 15.2% (adjusted for IUC)

Gross Revenue for the quarter was Rs 191,532 crore, higher by 49.2%
EBITDA for the quarter was Rs 30,283 crore, higher by 30%
Net Profit for the quarter was Rs 15,479 crore, higher by 46%
Cash Profit for the quarter was Rs 23,932 crore, higher by 42.1%
EPS for the quarter was Rs 20.9 per share, increased by 40.7%

I am pleased that Reliance has posted a strong performance in 2QFY22. This demonstrates the inherent strengths of our businesses and the robust recovery of the Indian and global economies, said Mukesh Ambani

Reliance Industries reported a 43 per cent year-on-year rise in consolidated net profit to Rs 13,680 crore for the quarter ended September,

RIL's Reliance Jio posted a net profit of Rs 3,528 crore in July-September quarter

RIL EBITDA stood at Rs 26,020 crore, as comapred to Rs 23,368 crore in first quarter of the current fiscal

RIL revenue came in at Rs 1.58 lakh crore, against the Rs 1.4 lakh crore in the last quarter of the FY22

Reliance net profit surges 11.5 per cent to Rs 13,680 crore versus 12,273 cr in the previous quarter

RIL share price gained 0.15 per cent to settle at Rs 2,627.05 apiece on BSE on Friday, ahead of Q2 results

Mukesh Ambani’s Reliance Industries Ltd (RIL) is likely to post strong growth in net profit led by a rise in EBITDA in the July-September quarter of FY22. Analysts expect that Reliance will continue the momentum from the previous quarter into the second quarter of the current fiscal. The oil-to-telecom conglomerate has recently announced several acquisitions through subsidiaries, such as a 100% stake in Norway-based solar cell; panel and polysilicon maker REC Solar Holdings for $771 mn; and 25 million euros (USD29 million) stake in Germany’s NexWafe GmbH. On the stock performance front, RIL share price has soared nearly 10 per cent in the last month, 38 per cent in six months, and over 32 per cent in the year so far.

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RIL has announced a spate of acquisitions/joint development arrangements in the past two months, highlighting increased momentum towards the ambitious four “Giga factory” plan in the renewable energy space. The transactions are aimed at both (i) acquiring relevant technology to roll out manufacturing plans faster, and (ii) to develop a multi-country, multi-application presence in the strategic areas of better storage solutions, hydrogen electrolyzer tech, and solar module manufacturing. Centrum Broking

Reliance Industries Ltd to post July-September quarter results shortly

Shareholders of Reliance Industries have approved the appointment of Saudi Aramco Chairman Yasir Al-Rumayyan on the company board, with less than 2 per cent of votes cast against the proposal. Disclosing the results of shareholder votes on the appointment, Reliance in a regulatory filing said 98.03 per cent of votes were cast in favour of the resolution to appoint Al-Rumayyan for three years.

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The average revenue per user (ARPU) for the previous quarter was at Rs 138.4, with improved subscriber mix  and better seasonality being offset by COVID impact.

During the previous quarter, total data traffic was 20.3 billion GB. At the same time, Jio witnessed voice traffic at 1.06 trillion minutes, a 19.5% on-year. According to the company, churn had reduced further during the quarter to 0.95% “on the back of customer-focused initiatives to minimize COVID led disruption. 

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.

At current average of USD250mn/GW, this initial investment will be USD2.5-3bn for RIL and we assume that the company will be looking to generate EBITDA of at least Rs40bn by FY24E. With an investment of USD10bn in four Giga factories (i) integrated solar module, (ii) advanced energy storage solutions, (iii) hydrogen electrolyzer factory, and (iv) fuel cells, RIL would be looking at a material contribution to earnings from the ~USD10bn intended to be invested in the green energy segment over the next 3-4 years. Even assuming a nominal pre-tax RoCE target of 14-15%, the USD10bn should generate Rs180bn or so of EBITDA (12-13% of FY23E consolidated EBITDA) for RIL. Centrum Broking

Reliance Retail's emphasis on digital commerce helped reliance digital in the previous quarter to clock best-ever quarter with record sales and uptick across consumer metrics.

O2C segment revenues for the first quarter had increased by 75.2% on-year to Rs 1.03 lakh crore primarily on account of sharp increase in product prices on the back of higher crude prices. 

Long term prospects and dominant standing of RIL in each of its product & 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 post fund raising while its traditional business will continue to generate steady cash flows. ICICI Direct

Reliance Industries reported a net profit of Rs 962 crore during the previous quarter. 

Jio platforms reported a Net Profit of Rs 3,651 crore during the previous quarter. The total customer base as on 30th June 2021 was 440.6 million with net addition of 42.3 million customers.

Following the order by the Singapore arbitration tribunal, which largely goes in its favour, Amazon.com has filed a fresh plea in the Supreme Court against the National Company Law Tribunal’s order which allowed Future Retail (FRL) to convene meetings of its shareholders and creditors for seeking approval to sell its retail assets to Reliance Retail.

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Reliance Industries reported an operating profit of Rs 1.44 lakh crore during the April-June quarter, up from Rs 91,238 crore from the previous year.

Reliance Industries had reported a net profit of Rs 12,273 crore in the April-June quarter, down from Rs 13,233 crore in the same period last year.

RIL plans to transform its energy business with an over-arching strategy to offer decarbonisation solutions globally at a competitive price (similar to its existing energy portfolio) in a market potentially worth US$5 trillion by 2030. The strategy is to provide supporting infrastructure in areas of hydrogen, integrated solar PV and grid batteries – all areas with high entry barriers, technological advances and good returns. It plans to create four giga-factories (~US$12bn investment, we estimate) offering the entire spectrum of renewable/distributed energy solutions, as it capitalises on India's quartz and silicon resources. The focus on the hydrogen value chain offers significant opportunities to decarbonise energy operations, compliment energy storage with batteries and potentially export green ammonia. Morgan Stanley

Reliance Retail Ventures Ltd (RRVL) has acquired a 52 per cent stake in veteran couturier Ritu Kumar’s firm Ritika Pvt Ltd for an undisclosed amount. “RRVL’s majority equity acquisition in Ritika Pvt Ltd included completely acquiring Everstone’s 35 per cent stake in the company,” a joint statement said.

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India’s largest telecom operator Reliance Jio gained 6.49 lakh mobile users in August leading the subscriber addition tally. Jio continued to outpace rivals in subscriber gains, adding 6.49 lakh wireless users in August, as its mobile base swelled to 44.38 crore.

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