Reliance Industries Q4 Results: Profit Meet Estimates But Oil-To-Chemical, Retail Margins Under Pressure
Reliance's Q4 profit met estimates even as its oil-to-chemical and retail units dragged down earnings.
Reliance Industries Ltd.’s quarterly profit met estimates even as its oil-to-chemical and retail units dragged down earnings.
The Mukesh Ambani-led conglomerate’s consolidated profit fell 12% sequentially to Rs 18,021 crore in the quarter ended March, according to its exchange filing. That compares with the Rs 16,819-crore consensus estimate of analysts tracked by Bloomberg.
RIL Q4 FY22 Highlights (QoQ)
Revenue from operations (minus excise duty) rose 12% to Rs 2,07,375 crore, against the estimated Rs 2,14,942.6 crore.
Operating profit rose 6% to Rs 31,366 crore, compared with the Rs 31,445.5-crore forecast.
Operating margin stood at 15.1% versus 16.1% as of December.
Oil-to-chemical unit's operating income rose 5.3% sequentially to Rs 14,241 crore. But the segment margin narrowed even as better refining margin partly offset lower petchem cracks.
The benchmark Singapore gross refining margin rose to $8 a barrel from $6.1 in the preceding three months.
The growth in O2C was firm despite volatility caused by the Russia-Ukraine conflict. The strength in fuel cracks were offset by weak downstream chemical margins and high energy costs.
Lower Ebitda in oil and gas was as a reflection of exit from shale gas.
Reliance Retail
Reliance Retail Ventures Ltd.’s operating income fell 3.2% sequentially on the back of flat sales over the prior quarter. The operations were impacted by headwinds posed by Covid-19 in January and lower investment income.
The business more than doubled its daily orders year-on-year across all its digital commerce platforms on the back of stronger product portfolio and attractive offers, the company said.
Reliance Jio
Jio Platforms Ltd., the holding company for digital ventures and the telecom unit, saw its revenue jump 7.9% quarter-on-quarter. The company saw increase in average revenue per user of Rs 167.10 in the fourth quarter led by tariff hike, better product mix and its fiber-to-the-home services crossing 5.3-million customers. The company has doubled its FTTH customer base in the last one year.
The company saw net reduction of 1.09-crore subscribers in the fourth quarter. During the quarter, average data and voice consumption per user per month increased to 19.7 GB and 968 minutes.
Shares of RIL closed nearly 1% lower before the results were announced compared with a 1.6% decline in the benchmark Nifty 50.