Companies

RIL Q1 consolidated net dips 7.3% on ‘Covid challenges'

Our Bureau. Mumbai | Updated on July 24, 2021

Revenue bolstered by higher price realisations across O2C segment

The consolidated net profit of Reliance Industries Ltd (RIL) dipped 7.3 per cent in the April June quarter of FY22 to ₹12,273 crore compared with ₹13,233 crore in the corresponding pre vious period.

The oil-to-telecom giant re ported a 58.2 per cent growth in its consolidated revenues to ₹1.44-lakh crore.

Challenging environment

RIL said it faced a highly chal lenging operating environ ment caused by the Covid second wave. The increase in revenue during the quarter on a year-on-year basis was bolstered by higher price real isations across the O2C seg ment, an over two times in crease in revenue of oil and gas due to incremental production from the KG D6 block, and rising revenues from digital services.

The capital expenditure for the June quarter was ₹16,684 crore. Reliance Jio Infocomm Ltd (RJIL) also spent an additional ₹29,276 crore for acquiring spectrum.

“The results of the firrst quarter of FY22 clearly demonstrate the resilience of Reliance’s diversified portfolio of businesses that cater to large parts of the consumption basket. In our O2C business, we generated strong earnings through our integrated portfolio and superior product placement capabilities,” said Mukesh Ambani, Chairman and Managing Director.

O2C business revenues rose 75.2 per cent to ₹103,212 crore for the June quarter (₹58,906 crore) due to the sharp rise in product prices on the back of higher crude prices.

Jio profit up 45%

Reliance Jio reported a net profit of ₹3,651 crore for the first quarter, up 45 per cent over the ₹2,519 crore in the same corresponding previous period. Reliance Retail reported ₹962-crore net profit in Q1, a jump of 123 per cent over the ₹431 crore it posted in the corresponding period last year.

Published on July 24, 2021

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