RIL Q2 results: Firm beats Street estimates, profit drops 15% YoY

Analysts in an ET NOW poll had projected the profit figure at Rs 8,700 crore.

It had posted a net profit of Rs 11,262 crore for the corresponding quarter last year.
Energy-to-telecom conglomerate Reliance Industries (RIL) on Friday reported a 15.05 per cent year-on-year (YoY) drop in consolidated net profit at Rs 9,567 crore for the quarter ended September 30. Analysts in an ET NOW poll had projected the profit figure at Rs 8,700 crore.

It had posted a net profit of Rs 11,262 crore for the corresponding quarter last year.

Consolidated revenue from operations fell 24.24 per cent YoY to Rs 1.16 lakh crore.


The company announced its earnings post market hours. Earlier in the day, the stock closed 1.37 per cent higher at Rs 2,054.35, even as the benchmark BSE Sensex declined 0.34 per cent down to close at 39,614.

The company said it pre-paid Rs 54,198 crore worth of long-term debts that reduced its debt to equity ratio to 0.46 from 0.75 in the previous quarter and 0.72 in the same quarter last year.

The company also said that at the group level, total outstanding non-convertible debentures were Rs 73,080 crore out of which, secured non-convertible debentures were Rs 13,351 crore. The Group has total outstanding commercial papers amounting to Rs 53,911 crore.
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Finance cost was at Rs 6,084 crore ($825 million) as against Rs 6,735 crore in the trailing quarter.

“The group’s operations and revenue during the quarter were impacted due to Covid-19,” RIL said in a release.

Commenting on the results, Mukesh Ambani, Chairman and Managing Director, Reliance Industries said: “We delivered strong overall operational and financial performance compared to previous quarter with recovery in petrochemicals and retail segment, and sustained growth in digital services business. Domestic demand has sharply recovered across our O2C business and is now near pre-Covid level for most products.”

Reliance Jio profit zooms 185% YoY
On the other hand, RIL’s telecom arm Reliance Jio posted 12.85 per cent quarter-on-quarter (QoQ) and 185 per cent YoY growth in net profit at Rs 2,844 crore. Analysts in an ETNOW poll had estimated the number at Rs 2,740 crore.
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Revenue from operations increased 33 per cent YoY to Rs 17,481 crore.

Average revenue per user (Arpu) increased to Rs 145 per subscriber per month from Rs 140.30 in the previous quarter.
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Reliance Retail revenue rises 30% QoQ
Revenue from operations increased 29.7 per cent QoQ to Rs 36,566 crore, and stayed at the same level as last year despite restricted store operations and lower footfalls. Reliance Retail’s EBITDA grew 85.90 per cent QoQ to Rs 2,006 crore. Margin recovered by 170 basis points to 5.5 per cent from 3.8 per cent QoQ.

Reliance retail table

Petchem revenue grows 18% QoQ
The petrochemical segment’s revenue grew 17.8 per cent QoQ with higher prices across product portfolio and higher volumes. EBITDA increased by 34.6 per cent QoQ Rs 5,964 crore, primarily on account of higher production volume and higher volume placement in domestic market. EBITDA margins improved sequentially by 250 basis points with firm cracker margin.

petrochemical table

Refining revenue increases 33% QoQ
Revenue from refining and marketing segment increased by 33.3 per cent QoQ to Rs 62,154 crore primarily due to higher crude oil prices.

RIL earned $5.70 per barrel on turning every barrel of crude oil into fuel in the second quarter of the current fiscal as compared to a gross refining margin (GRM) of $6.30 per barrel in the previous quarter. Analysts in an ET NOW poll had projected the GRM at $6 per barrel.

Refining and marketing table

Oil and gas declines 30%
Revenue from the oil and gas (exploration and production) business declined by 29.8 per cent QoQ to Rs 355 crore primarily due to lower price realisation and decline in production. The segment witnessed an EBITDA loss of Rs 194 crore against a loss of Rs 32 crore in the preceding quarter.
Oil and GAS table

Media business revenue improves
Revenue from media business grew 31.5 per cent QoQ as Covid-linked impact on ad-revenues receded over the quarter. The figure jumped to Rs 1,061 crore from Rs 807 crore.

“Advertisement revenues rebounded sharply as economic activity restarted on tapering of lockdowns. News business’ advertising has fully recovered, and entertainment recovery is near-complete by the end of the quarter. Subscription revenues have been resilient and domestic subscription revenue continues to rise led by expanding TV and digital distribution tie-ups,” RIL said.
Media business table

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