The net profit is below ET Now poll of Rs 15,664 crore. The bottomline fell despite consolidated revenue rising nearly 34% on year to Rs 2.32 lakh crore.
The topline beat the ETNow poll of Rs 2.18 lakh crore.
Consolidated revenue of the mainstay oil-to-chemicals business grew over 32% on year to Rs 1.59 lakh crore in the quarter. This business made up for nearly 69% of RIL’s consolidated topline in the quarter.
The retail business’ revenue grew by nearly 43% on year to Rs 64,936 crore. The digital services business under the umbrella of Reliance Jio Infocomm registered a revenue growth of more than 21% to Rs 29,558 crore.
Operational performance of the O2C business was affected by lower gross refining margin in the refining business, and the windfall gains tax. Earnings before interest, taxes, depreciation and amortization (EBITDA) for the quarter fell nearly 6% on year to Rs 11,968 crore.
However, the retail and digital businesses saw strong improvement in the operational performance. Retail business EBITDA grew a whopping 51% on year to Rs 4,414 crore, and that of digital services increased about 29% to Rs 12,291 crore.
The EBITDA for the retail business and Jio Platforms were at a record high in the quarter. Aided by the retail and digital business, the consolidated EBITDA rose 14.5% on year to Rs 34,663 crore.
“We saw consistent net subscriber additions and higher engagement in the digital services segment…Our retail business delivered record performance with a strong revival in footfalls, store additions and digital integration,” Chairman Mukesh Ambani was quoted as saying in the press release.
“Performance of our O2C business reflect subdued demand and weak margin environment across downstream chemical products..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,” Ambani added.
Jio Platforms Ltd’s consolidated net revenue for the reported quarter rose nearly 23% on year to Rs 24,275 crore, led by higher average revenue per user (ARPU) for the connectivity business.
The ARPU for the quarter stood at Rs 177.2, higher than Rs 175.7 a quarter ago. The EBITDA grew 29% on year to Rs 12,011 crore on the back of strong revenue and margins. Operating margin expanded by a sharp 250 basis points to 49.5% on higher ARPU, which offset higher operating costs. The telecom operator net added 7.7 million subscribers in Q2, as gross additions remained strong at 32.7 million. Jio’s total customer base as on September 30 stood at 42.76 crore.
Jio announced the beta trial of its True-5G services on the eve of Dussehra. The country’s largest operator by subscriber base aims to complete its pan India 5G rollout by December 2023.
Reliance Retail reported a 44.5% growth in consolidated net revenue as the impact of the pandemic waned, and the operating environment moved at par with pre-Covid levels. The segment delivered record revenue and profits for the quarter, led by broad-based growth across all consumer baskets. “Across town classes, consumer sentiments remained positive on the back of key promotional events and early onset of festivities,” RIL said.
Reliance Retail expanded its physical store network with 795 new stores in the quarter, taking the total store count at the end of the quarter to 16,617. Operating margin improved 130 basis points on year to 7.4%, aided by a favorable mix, positive operating leverage, and operational efficiencies.
Within the retail business, the consumer electronics business witnessed strong double-digit growth, driven by higher bill values and conversions, as more customers visited stores. Meanwhile, festive season drove strong sales for the fashion and lifestyle segment.
The performance of this business, which makes for the lion’s share of RIL’s consolidated topline and operating profit, was hit during the quarter due to show by both the refining and petrochemicals segments.
The operating profit declined 6% on year, primarily on account of the special additional excise duty on transportation fuels and lower polymer deltas. The operating margin contracted by a sharp 310 bps to 7.5%. Domestic polymer demand improved only marginally during the quarter amid volatile crude and feedstock prices arising due to geopolitical situations. Polymer margins over Naphtha declined on year due to a sharp fall in polymers prices amid lower demand from China and a volatile energy price environment.