Reliance Q2 profit, revenue exceed estimates as refining, retail businesses rebound
Last Updated: 23rd October 2021 - 08:38 am
Reliance Industries Ltd, India’s most valued company, reported strong quarterly earnings and revenue numbers that beat analysts’ expectations thanks to all its key businesses posting robust growth.
Consolidated net profit for the second quarter ended September 30 jumped 43% to Rs 13,680 crore from Rs 9,567 crore a year earlier, the energy-to-telecom conglomerate led by billionaire Mukesh Ambani said.
Earnings before interest, tax, depreciation and amortisation (EBITDA) for the quarter climbed 30% to Rs 30,283 crore. Consolidated revenue from operations soared 48% to Rs 1.74 lakh crore from 1.16 lakh crore a year earlier.
Both profit and revenue exceeded analysts’ forecasts. Analysts polled by Bloomberg had expected RIL’s revenue at Rs 1.47 lakh crore, EBITDA at Rs 24,836 crore and net profit at Rs 13,063 crore.
The company recorded growth in all its main businesses—energy, telecom and digital services, and retail. The oil-to-chemicals segment, which comprises its mainstay refining and petrochemicals businesses, led with a 58% growth in revenue to Rs 1.2 lakh crore. The segment’s EBITDA surged almost 44% to Rs 12,720 crore.
Reliance Q2: Other highlights
1) Jio Platforms gross revenue rises 15.2% to Rs 23,222 crore.
2) Jio Platforms EBITDA climbs 16.6% to Rs 9,294 crore; net profit jumps 23.5% to Rs 3,728 crore.
3) Jio Platforms a net 2.38 crore customers in Q2, taking the total to 42.95 crore.
4) Reliance Retail gross revenue rises 10.5% to Rs 45,426 crore.
5) Reliance Retail EBITDA increases 45.2% to Rs 2,913 crore; net profit grows 74.2% to Rs 1,695 crore.
6) Reliance Retail opened 813 stores in Q2. It now has 13,635 physical stores operational.
Reliance Q2 management commentary
RIL chairman and managing director Mukesh Ambani said the company posted a strong performance in Q2, which shows the inherent strengths of its 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. Our O2C business benefited from sharp recovery in demand across products and higher transportation fuel margins,” he said.
Ambani, Asia’s richest man, also said that Reliance Retail continues to grow on the back of rapid expansion of both physical stores and digital offerings, resulting in healthy growth in revenue and margin expansion.
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