Reliance Industries Profit Jumps 46% To Rs 17,955 Crore On Strong Refining Business

Billionaire Mukesh Ambani-led Reliance Industries on Friday reported 46 per cent jump in net profit to Rs 17,955 crore in quarter ended June 2022 on the back of strong earnings from refining and telecom businesses. The company had reported net profit of Rs 12,273 crore in the same quarter last year.

Its total revenue from operations came in at Rs 223,113 crore, up 55 per cent from Rs 144,372 crore in the year ago period.

The latest quarter earnings, however, could not better the record net profit of Rs 18,549 crore reported by the company in the three months ended December 2021.

Reliance Industries' oil to chemicals business which houses refining and petrochemicals businesses posted record revenue in the first quarter of current financial year. Revenue from oil to chemicals business jumped 57 per cent to Rs 161,715 crore, its operating profit advanced 63 per cent to Rs 19,888 crore and achieved operating profit margin of 12.3 per cent on account of higher crude oil and product prices. Benchmark Brent crude average price was up 65 per cent Y-o-Y to $ 113.9/bbl.

Analysts said that the company benefitted from refining cheap Russian crude oil and selling the refined petrol, diesel and aviation turbine fuel to markets in Europe and US amid sanctions on Russia in the aftermath of its invasion on Ukraine.

Reliance Industries telecom arm - Jio posted highest ever quarterly revenue of Rs 27,527 crore, up 24 per cent annually. Jio's operating profit advanced 28.5 per cent to Rs 11,424 crore and its net profit advanced 24 per cent to Rs 4,530 crore. 

Jio' average revenue per user, (ARPU) a key monitorable metric for all telcos increased to Rs 175.7 per user per month from Rs 138.4 in the same quarter last year.

Reliance Retail Ventures, its retail venture, also reported highest ever quarterly revenue of Rs 58,554 crore, up 52 per cent over the same period last year. The company's net profit more than doubled to Rs 2,061 crore and its area of operations advanced 45.5 million square feet compared to 34.5 million square feet in the year ago period. 

During the quarter Reliance Retail signed master franchise agreement with GAP, Tod’s and Pret A Manger.

“Geopolitical conflict has caused significant dislocation in energy markets and disrupted traditional trade flows. This along with resurgent demand has resulted in tighter fuel markets and improved product margins. Despite significant challenges posed by the tight crude markets and higher energy and freight costs, O2C business has delivered its best performance ever. I am also happy with the progress of our Consumer platforms. In Retail business, we continue to focus on enhancing our consumer touch-points and building a stronger value proposition for our customers. Our strong supply chain infrastructure and sourcing efficiency is helping us maintain competitive pricing for daily essentials, thereby insulating consumers from inflationary pressures,”  Mukesh Ambani, Chairman and Managing Director, Relianc Industries Limited said.

Reliance Industries shares ended 0.62 per cent higher at Rs 2,502.90 ahead of its June quarter earnings.