Reliance Industries (RIL) on Friday missed estimates by reporting consolidated net profit of Rs 12,273 crore for the April-June quarter, down 7.3% year on year. The company’s consolidated revenue during the period at Rs 1.4 lakh crore, rose 58.2% year-on-year, slightly below Bloomberg consensus estimates.
Earnings before interest, taxes, depreciation and amortization (Ebitda) for the quarter was Rs 23,368 crore, up 38.5% per annum while Ebitda for Jio Platforms rose 21.3% to Rs 8 892 crore and retail Ebitda increased 79.9% to Rs 1,941 crore. RIL’s oil and chemicals business EBITDA improved 49.8% annually to Rs 12,231 crore, while its gas production business unit reported Rs 797 crore Ebitda versus Ebitda negative of Rs 32 crore in the first quarter of fiscal 21.
The company’s expenses increased 50.2% annually to 1.3 lakh crore. Expenses would have been higher, further reducing profits, if RIL’s finance cost had not fallen 49.6% year-on-year to Rs 3,397 crore in the first quarter of fiscal 22, after the company Achieved a net debt-free balance sheet in FY 21. RIL’s profit in Q1FY21 included an exceptional gain of Rs 4,966 crore.
âCovid-related restrictions on store operations during the quarter impacted our business operations and profitability,â said Mukesh Ambani, president and CEO of RIL. Expansion of RIL’s retail stores was limited during the quarter and could open 123 new stores, bringing the total to 12,803. More than 700 stores are in the pipeline and will be put into operation as new ones are completed. curbs will be lifted, the company said. âThe results for the first quarter of fiscal 2022 clearly demonstrate the resilience of Reliance’s diversified portfolio of businesses that caters to a large portion of the consumer basket,â Ambani added.
Revenues from the oil and gas business jumped 153.2% year-on-year to Rs 1,281 crore, mainly due to the acceleration in R-Cluster gas production and the start of production from the SatCluster field in the KG D6 block. The combined production of these two fields now stands at over 18 million standard cubic meters per day, contributing 20% ââof gas production in India.