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Improved realisation on the back of an increase in oil prices, higher demand for oil products and growth in data consumption have pushed Reliance Industries’s consolidated profit up by 43 per cent for the second quarter ended September 30. The company posted a net profit of ₹13,680 crore in Q2 against ₹9,567 crore clocked in the same period last year.
It reported a 50 per cent increase in revenue from operations at ₹1.74 lakh crore (₹1.16 lakh crore). Mukesh Ambani, Chairman and Managing Director, Reliance Industries, said: “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.”
Oil-to-chemical segment revenue increased 58.1 per cent Y-o-Y to ₹120,475 crore primarily due to improved realisation on the back of an increase in oil prices and higher volumes. But EBITDA margin for the quarter declined by 100 basis points Y-o-Y to 10.6 per cent. This was due to the base effect driven by higher feedstock and product prices.
Higher gas prices
“In 2Q FY22, seasonal uplift in demand in US and Europe, Asian exports to the West, lower Chinese exports, and Ida (hurricane in the US) related refinery outages in the US helped to firm up transportation fuel cracks in Asia. Also, higher gas prices incentivised gas to oil switch resulting in higher oil demand and strengthening of overall cracks,” the company said in a statement.
Jio Platforms, the digital services business, reported a net profit of ₹3,728 crore, up 23.5 per cent Y-o-Y. Gross revenue for the quarter was at ₹23,222 crore, up by 15.2 per cent Y-o-Y. Jio added total gross subscribers of 35.6 million in 2Q FY22, the highest in the last seven quarters. But Covid-led spike in the churn of low-end subscribers drove a net subscriber decline of 11.1 million during the quarter.
Reliance Retail has clocked a 10.5 per cent growth in revenue for the second quarter of FY22 at ₹45,450 crore compared to ₹41,124 crore at the same time last year. Net profit for the quarter was ₹ 1,695 crore higher by 74.2 per cent compared to last year. The Fashion & Lifestyle business delivered record performance with the highest ever quarterly revenues and posted over 2x growth over the same period last year led by strong growth in-store sales, digital commerce platforms, and merchant partnerships.
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