RIL Q2 net remains flat at ₹15,512 crore on volatility in oil-to-chemicals business

Revenue grew 32.4% to ₹253,497 crore with ‘strong traction’ in the consumer businesses and on higher oil prices.

October 21, 2022 08:34 pm | Updated 08:57 pm IST - Mumbai

Labourers rest in front of an advertisement for Reliance Industries at a construction site in Mumbai, India, March 2, 2016.

Labourers rest in front of an advertisement for Reliance Industries at a construction site in Mumbai, India, March 2, 2016. | Photo Credit: Reuters

Reliance Industries Ltd. (RIL) reported a flat consolidated net profit at ₹15,512 crore for the second quarter on account of volatility in the Oil to Chemicals (O2C) business. Net profit came in at ₹15,479 crore a year earlier.

Revenue grew 32.4% to ₹253,497 crore with ‘strong traction’ in the consumer businesses and on higher oil prices.

O2C earnings hit

The company said the earnings before interest, tax, depreciation, and amortisation (EBITDA) in the O2C segment were impacted by weak downstream chemical margins and the introduction of special additional excise duty (SAED), partially offset by firm transportation fuel margins.

“We saw consistent net subscriber additions and higher engagement in the Digital Services segment, ”Mukesh D. AmbaniReliance Industries Limited chairman and managing director

Subscriber base rises for Jio

Jio Platforms reported operating revenue (net of GST) of ₹24,275 crore, a growth of 22.7% compared with a year earlier, driven by an increase in average revenue per user (ARPU).

Net profit climbed 26.9% to ₹4,729 crore. Net subscriber addition was healthy at 7.7 million as gross additions totalled 32.7 million. The total customer base as on September 30 was 427.6 million. Reliance Jio’s average data and voice consumption per user per month increased to 22.2 GB and 969 minutes, respectively.

Reliance Retail posted its best-ever revenue and profits, led by broad-based growth across consumption baskets. Gross revenue increased 43% to ₹64,920 crore.

EBITDA reached a record ₹4,404 crore, reflecting 51% growth.

“We saw consistent net subscriber additions and higher engagement in the Digital Services segment,” said RIL chairman and managing director Mukesh D. Ambani. “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 roll-out of True 5G on the pan-India basis,” he said.

He pointed out that the retail business delivered ‘record performance with strong’ revival in footfalls, store additions, and digital integration.

Mr. Ambani said, “Performance of our O2C business reflects subdued demand and weak margin environment across downstream chemical products. 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.”

“Our domestic oil & gas business continued to deliver robust performance maintaining production at 19 MMSCMD levels in the KG D6 block, significantly enhancing energy security for the country. We are confident of commissioning MJ Fields by the year-end,” he added.

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