Reliance Industries Q2 Result: Consolidated net profit at Rs 13,656 crore, Jio's profit up 28% to Rs 4,518 crore

Reliance Industries announced the results for the second quarter (Q2) ended September 2022 on Friday (October 21). The company's net profit declined 0.18% year-on-year to Rs 13,656 crore for the quarter. It was Rs 13,680 crore in the same quarter last year. Revenue from the operation grew 33.7% to Rs 2.32 lakh crore from Rs 1.2 lakh crore last year.
Analysts had expected a 12% growth in profit to Rs 15,263 crore and a 34% growth in sales to Rs 2.25 lakh crore. Reliance said, "Even after the special additional excise duty imposed by the government in July, the company's consolidated operating profit grew by 14.5% to Rs 34,663 crore in the quarter."
The company said the company suffered a loss of Rs 4,039 crore in the September quarter on account of the government's special additional excise duty on the export of refined products. Excluding the impact of special excise duty, consolidated operating profit grew 27.8% to Rs 38,702 crore in the reported quarter, the company said.
Overall, the growth in operating profit at the consolidated level was helped by the record quarterly operating profit of Reliance Retail and Jio Platforms. Mukesh Ambani, managing director and chairman, said, "I am pleased with the record performance of our consumer business, which is creating new records every quarter."
Reliance said its total outstanding debt as on September 30, 2022, was Rs 2.94 lakh crore, while cash and cash equivalents stood at Rs 2.01 lakh crore. Therefore, the net debt of the company increased to Rs 93,253 crore.
Reliance's digital services business, which also includes Jio. This business of the company has performed well in the second quarter. The operating profit of this segment grew by 5.1% on a quarter-on-quarter basis to Rs 12,011 crore. The company has benefited from the addition of new customers and the benefits of the recent tariff hike in the telecom subsidiary.
Reliance Jio added 7.7 million new customers in the September quarter. Due to this its total user base has increased to 427.6 million as of 30 September. The operating margin of the Digital Services business has also improved. The operating margin has grown to 49.5% this quarter, up from 48.7% in the previous quarter.
Reliance's organized retail segment saw good growth. The revenue of this segment grew 44.5% year-on-year to Rs 57,694 crore in the September quarter. Reliance said it had over 180 million visitors to its stores in the September quarter. The company opened 795 new stores in this quarter. After this, the total number of Reliance Retail stores now stands at 16,617.
Sales of Reliance's oil-to-chemical (O2C) business grew 32.5% year-on-year to Rs 1.6 lakh crore. However, the segment's operating profit fell 5.9% year-on-year to Rs 11,968 crore, despite a fall in global refining margins and the government's special excise duty. Reliance's production for sale was down 3.6% year-on-year with planned revamping of the primary and secondary units of the Special Economic Zone (SEZ) refinery for M&A.
Reliance's oil and gas production business has benefited from a jump in domestic natural gas prices during the quarter. The revenue of this segment grew by 134.4% year-on-year to Rs 3,853 crore. At the same time, the operating profit of the segment grew almost three times on a year-on-year basis to Rs 3,171 crore in the quarter. While its operating margin has increased by 17.2% to 82.3%. The segment produced 43.6 billion cubic feet during the quarter, compared to 52 billion cubic feet in the year-ago quarter.
The revenue of Reliance's media and broadcasting business grew 11.7% year-on-year to Rs 1,549 crore in the quarter. The operating profit of this segment declined by 87.4% year-on-year to Rs 32 crore. While its operating margin has come down to 2.1% from 18.2% a year ago.
Let us know that on October 21, Reliance Industries' shares closed at Rs 2,470, down 1.2% on the National Stock Exchange.