RIL posts net profit of Rs 15,512 crore for second quarter

Mukesh Ambani-led Reliance Industries Ltd (RIL) posted a net profit of Rs. 15,512 crores for the period that ended on September 30, 2022, up from Rs. 15,479 crores posted for the same period the previous year.

For the period that ended on September 30, 2022, RIL posted gross revenue of Rs. 253,497 crores up from Rs. 191,532 crores logged for the period ended September 30, 2021.

The company had registered a net profit of Rs. 15,512 crores for the period ended September 30, 2022, up from Rs. 15,479 crores posted for the same period the previous year.

Chairman and Managing Director Mukesh D. Ambani said, "I am pleased with the record performance of our consumer businesses which continue to scale new milestones every quarter."

"We saw consistent net subscriber additions and higher engagement in the Digital Services segment. Jio has announced a beta trial for its industry-leading standalone 5G services and is making rapid progress for an ambitious and the fastest-ever rollout of True 5G on the pan-India basis," he added.

While the company's retail business logged record performance, the O2C business reflects subdued demand and a weak margin environment across downstream chemical products, Ambani said.

Transportation fuel margins were better than last year but significantly lower sequentially.

"Segment performance was also impacted by the introduction of special additional excise duties during the quarter to ensure stable supply and lower volatility in the domestic market," he said.

According to RIL, the increase in gross revenue was driven by higher realisation in oil to chemicals (O2C) business with a sharp increase in energy prices.

The retail segment recorded 43 per cent YoY growth in revenue, while the Digital Services segment achieved 21 per cent YoY growth, the company said.

It said its EBITDA increased by 14.5 per cent to Rs 34,663 crore from Rs 30,283 crore in 2Q FY22 due to positive operating leverage and operational efficiencies in the retail segment, higher gas price realisation with an increase in ceiling price, and marginally higher volumes in the oil & gas segment, and increase in the average revenue per user (ARPU) and customer engagement in the digital services segment.

The RIL's exports (including deemed exports) from India operations increased by 57.5 per cent to Rs. 86,382 crores as against Rs. 54,844 crores in the corresponding quarter of the previous year, mainly due to higher price realisations despite lower downstream product volumes.

The company's outstanding debt as on September 30, 2022, was Rs. 294,859 crores (USD 36.2 billion). Cash and cash equivalents as on September 30, 2022, were at Rs. 201,606 crores.

The capital expenditure for the quarter that ended September 30, 2022, was Rs. 32,534 crores (USD 4 billion).

Additionally, Rs. 88,078 crores (USD 10.8 billion) was incurred towards the acquisition of Spectrum by Reliance Jio Infocomm Ltd, the company said.

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