Comments
Reliance Industries (RIL) posted 41 per cent growth in consolidated net profit at ₹19,443 for the quarter ended June 30, compared to ₹13,806 crore posted in the corresponding quarter last year
The growth was led by higher margins driven by the oil to chemicals (O2C), oil and gas, retail and digital services business. The oil-to-telecom conglomerate’s revenue from operations rose 55 per cent to ₹2.23 lakh crore during the reporting quarter as compared to ₹1.44 lakh crore posted in the same quarter last year.
Revenue of O2C, which delivered the best-ever quarterly performance, was driven by higher price realisations with increased volumes of transportation fuels in an environment of higher crude prices, energy costs and product prices. Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries 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.”
Net profit of the retail business during the quarter was ₹ 2,061 crore, higher by 114.2 per cent year-on-year. Retail segment revenues increased on account of favourable revenue mix, new store additions, normalised operations of stores and sustained growth in digital and new commerce businesses.
“In the retail business, we continue to focus on enhancing our consumer touch-points and building a stronger value proposition for our customers. Our strong supply chain infrastructure and sourcing efficiency is helping us maintain competitive pricing for daily essentials, thereby insulating consumers from inflationary pressures,” Ambani said.
Net profit for the digital business under Jio was ₹ 4,530 crore, higher by 24.1 per cent year -on-year. Digital services revenues were primarily driven by the residual impact of tariff hikes and acceleration in Fibre to the Home segment. The average revenue per user during the quarter of ₹ 175.7 per subscriber per month saw a healthy 27 per cent growth on Y-o-Y. and 4.8 per cent growth, compared to the previous quarter sequentially. “Customer engagement on our Digital Services platform remains high. Jio is working towards expanding data availability for all Indians and I am pleased to see the positive trends in mobility and FTTH subscriber additions,” Ambani added.
Revenue of the Oil and Gas segment increased primarily due to improved gas price realisation in KG D6 and CBM and higher production in KG D6.
Exports (including deemed exports) from RIL’s India operations increased by 71.3 per cent to ₹96,212 crore as against ₹56,156 crore in the corresponding quarter of the previous year mainly due to higher price realisations and higher volumes of transportation fuels.
Capital expenditure (including exchange rate difference) for the quarter was ₹31,442 crore. The company’s finance cost increased by 17.7 per cent to ₹3,997 crore as against ₹3,397 crore in the corresponding quarter of the previous year. Higher finance costs are mainly due to an increase in interest rates and currency depreciation, it clarified.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.