RIL Q2 Results: Profit Rises 11% Aided By Oil-To-Chemicals, Retail Segments
Net profit of the Mukesh Ambani-led conglomerate rose 11.5% sequentially to Rs 13,680 crore in Q2.
Reliance Industries Ltd.'s second-quarter profit rose as demand for its oil-to-chemicals and retail units improved after Covid-19 curbs were eased.
Net profit of the Mukesh Ambani-led conglomerate rose 11.5% sequentially to Rs 13,680 crore in the quarter ended September, it said in an exchange filing. That compares with the Rs 12,526.2-crore consensus estimate of analysts tracked by Bloomberg.
Revenue rose 20% over last year to Rs 1,67,611 crore—higher than the estimated Rs 1,45,000 crore.
Operating profit rose 17% to Rs 32,513 crore.
Operating margin narrowed to 19.4% from 19.9% earlier.
The oil-to-chemicals arm's Ebitda grew 4% sequentially on account of better transportation fuel cracks and efficient product placement, among other reasons.
India's overall consumption of petroleum products rose 2.5% sequentially to 48.42 million metric tonnes in the quarter ended September, according to data from Petroleum Planning and Analysis Cell. While petrol consumption grew 17% over the preceding quarter to 7.9 MMT, diesel usage declined 6.3% quarter-on-quarter to 17.3 MMT.
However, RIL's petrochemicals segment was impacted as feedstock prices strengthened, primarily those of crude oil and gas. In addition, spreads of polyethylene, polypropylene and PVC naphtha softened between 16% and 18% over the preceding quarter.
Operating profit of its upstream segment rose 34% sequentially to Rs 1,071 crore amid higher production from KG-D6 block and US shale, and higher realisation. Combined average production from KG-D6 Block was over 18.0 million metric standard cubic metres per day during the quarter. Production from KG-D6-MJ fields is expected by third quarter, which will boost overall gas output to 30 mmscmd.
Jio Platforms
Net profit of Jio Platforms Ltd. and Reliance Jio rose 2.1% and 0.6% quarter-on-quarter. Average revenue per user grew 3.7% sequentially to 143.6. In the last few quarters, company’s gross and active subscribers’ market share have remained stable, according to data from the telecom regulator.
Reliance Retail
Operating profit of RIL's retail arm rose 49.6% sequentially to Rs 2,923 crore amid rebound in demand across categories as the economy opened up once pandemic-related restrictions were eased across the country.