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On the operating performance, the oil-to-telecom conglomerate's earnings before interest, taxes, depreciation, and amortization (EBITDA) during the June quarter stood at ₹38,093 crore, compared to ₹37,997 crore in the year-ago period. The company's overall growth was offset by O2C performance despite steady growth in retail and telecom arms.
“Reliance’s strong operating and financial performance this quarter demonstrates the resilience of our diversified portfolio of businesses that cater to demand across industrial and consumer segments,'' said Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries Limited.
The company's board has declared a dividend of ₹9 per equity share for fiscal 2022-23. ‘’The board of directors has recommended dividend of ₹9/- per fully paid up equity share of ₹10/- each for the financial year ended March 31, 2023. This payment of dividend is subject to approval of members of the Company at ensuing annual general meeting of the company,'' said Reliance Industries in a regulatory filing to the stock exchanges.
Meanwhile on Thursday, the financial arm of RIL was demerged from its parent company. The demerged entity RSIL (Reliance Strategic Investments Limited), would be renamed JFSL (Jio Financial Services Limited) and it will be listed separately on NSE and BSE in the next few months.
Experts reckon that the demerger of Jio Financial Services from diversified conglomerate will create a non-banking financial behemoth with a size of approximately ₹1.5 lakh crore which could pose a tough challenge to existing non-banking financial companies (NBFCs).
O2C Business
The decline in the conglomerate's revenue and consolidated net profit was due to weaker oil-to-chemicals (O2C) business growth amid weakness in global crude oil prices. The diversified conglomerate's O2C's revenue declined 17.7 per cent at ₹1,33,031 crore in the quarter-under-review, compared to ₹1,61,715 crore in the year-ago period.
Reliance said the lower O2C revenue was ‘’primarily on account of sharp reduction in crude oil prices and lower price realisation of downstream products. This was partially offset by higher volumes.''
Reliance BP Mobility Limited (operating under the brand Jio-bp) launched pioneering fuel-economy diesel. It has the potential to deliver 4.3 per cent mileage per truck, resulting in savings up to ₹1.1 lakh per annum. ‘’The company has created India’s first automated dosing infrastructure and additive supply chain across the country. Both fuel-economy diesel and high-performance petrol is retailed at market price across the network,'' said RIL in its statement.
‘’O2C business delivered a resilient performance despite continuing global macro headwinds. Commencement of MJ field operations during the quarter will enhance India’s energy security, with total production from KGD6 block rising to ~30 MMSCMD in the coming months,'' said Chairman Mukesh Ambani.
Reliance Retail
Reliance Retail reported a record revenue and EBITDA in the June quarter. The retail arm's net profit rose 18.8 per cent to ₹2,448 crore, compared to ₹2,061 crore in the corresponding period last year. Gross revenue from operations rose 19 per cent to ₹69,962 crore, compared to ₹69,948 crore, compared to ₹58,554 crore in the year-ago period. The EBITDA came in at ₹5,151 crore, compared to ₹3,849 crore in the year-ago period.
Reliance Retail received a record 249 million footfalls across formats and geographies in the quarter, with a growth of 42 per cent YoY. Reliance Retail expanded its physical store network with 555 new store openings, taking the total store count at the end of the quarter to 18,446 and operating area to 70.6 m sft.
"The sustained growth across consumption baskets has further consolidated our position as a market leader. We continue to innovate and invest in our stores and digital platforms to make shopping more engaging for our customers." said Isha M Ambani, Executive Director, Reliance Retail Ventures Limited.
Telecom business
On the telecom front, Reliance Jio Infocomm reported a 12 per cent jump in its net consolidated profits to ₹4,863 from ₹4,335 crore during the corresponding quarter of last fiscal. The revenue of Reliance Jio Infocomm was up by 10 per cent year-on-year to ₹24,042 crore from ₹21,873 crore during Q1FY23.
Jio continued to lead industry’s net subscriber addition with 9.2 million adds in the June quarter. Monthly churn also reduced to 1.8 per cent during the quarter. The average revenue per user (ARPU) increased 2.8 per cent year-on-year at ₹180.5 driven by better subscriber mix and ramp-up of wireline business.
‘’Accelerated roll-out of Jio’s True 5G services is propelling the nation’s digital transformation at an unprecedented pace. In another step towards democratizing internet in India, Jio launched the “JioBharat" Phone Platform, making internet technology accessible and affordable to every Indian,'' said Chairman Ambani.
Reliance GDRs down 6% post Q1 results
The global depository receipts (GDRs) of RIL dipped by over six per cent in London Stock Exchange trading after the announcement of June quarter results. As per the website of the stock exchange, the GDR of Reliance Industries was trading at $62.30, down 6.46 per cent. The stock movement on the London Exchange was similar to BSE as RIL shares witnessed selling on Friday as the street estimates were expecting a plunge in net profit.
On July 21, shares of RIL settled 2.57 per cent lower at ₹2,536.20 apiece on the BSE and emerged as one of the top losers on the S&P BSE Sensex index, registering an overall decline of 3.19 per cent in its share price during the trading session today.
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Updated: 21 Jul 2023, 07:59 PM IST
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