Reliance Industries Q2 Results: Profit Down 33% On High-Base Effect, Lower Other Income

Reliance Industries Ltd.'s profit for the three months ending September missed street estimates due to a high-base effect from the previous quarter, when profit was boosted by a one-time gain from the sale of listed investments.

The oil-to-telecom conglomerate reported a 33% sequential fall in consolidated net profit for the quarter ended September to Rs 18,165 crore, according to its notification to the exchanges on Friday. That missed Bloomberg’s estimate of Rs 19,883 crore.

The fall in profit followed an exceptional other income of Rs 15,119 crore in the previous quarter, which included Rs 8,924 crore from the sale of listed investments, the company said. In comparison, other income in the latest quarter dropped to Rs 4,482 crore.

• Revenue up 4.1% to Rs 2,54,623 crore versus Rs 2,43,632 crore (Bloomberg estimate: Rs 2,47,800 crore)

• Ebitda up 6.9% to Rs 45,885.00 crore versus Rs 42,905.00 crore (Estimate: Rs 45,151 crore)

• Margin at 18.02% versus 17.61% (Estimate: 18.2%)

• Profit down 33% to Rs 18,165 crore versus Rs 26,994 crore (Estimate: Rs 19,883 crore)

The oil-to-chemicals business posted Ebitda of Rs 15,008 crore, up from Rs 14,511 crore in the preceding quarter. The increase was driven by stronger fuel cracks and improved polymer spreads, partly offset by weaker polyester margins.

Throughput rose to 20.8 million tonnes from 19.1 million tonnes, helped by higher domestic fuel placement through Jio-bp. Diesel and petrol volumes rose 34% and 32% respectively.

The exploration and production business reported Ebitda of Rs 5,002 crore, little changed from Rs 4,996 crore in the previous quarter. Revenue stood at Rs 6,058 crore.

Gas output from the KG-D6 block averaged 26.1 million standard cubic metres per day, accounting for about 30% of India’s domestic gas supply.

The retail business recorded Ebitda of Rs 6,817 crore, compared with Rs 6,381 crore in the June quarter. Festive demand lifted sales across grocery, fashion and consumer electronics.

Grocery revenue grew 23% year-on-year, fashion and lifestyle rose 22%, and consumer electronics increased 18%. Reliance added 412 new stores during the period, taking its total store count to 19,821.

Ebitda from digital services, operated under Jio Platforms, increased to Rs 18,757 crore from Rs 18,312 crore. Meanwhile, Reliance Jio Infocomm added 8.3 million subscribers during the quarter, taking the total base to 506 million, including 234 million 5G users.

Average revenue per user improved to Rs 211.4 per month, up from Rs 208.8 in the June quarter, supported by higher data use and growth in fixed broadband connections.