Reliance's Q2 profit jumps to Rs 25,548 crore as oil-to-chemicals surges
Reliance Industries reported a record quarterly profit for July–September, driven by its oil-to-chemicals business, while its retail arm's profit fell 24.3 per cent.
The Global Sun Desk ·
Reliance Industries reported a consolidated net profit attributable to owners of Rs 25,548 crore for the July–September quarter, about 41 per cent more than the Rs 18,165 crore it earned a year earlier. The company announced the numbers on Friday, 30 October, after markets closed.
Counting associates and joint ventures, profit after tax was Rs 29,550 crore, up 33.8 per cent from Rs 22,092 crore, according to a PTI report. PTI described it as a record quarterly profit for the company. Operating profit (EBITDA) rose 24 per cent to Rs 62,409 crore, and revenue grew by about 28 per cent.
Oil-to-chemicals leads
The oil-to-chemicals (O2C) business was the main driver. Its EBITDA rose about 68 per cent to Rs 25,203 crore, and its revenue climbed 44.2 per cent to Rs 2,31,601 crore. Reliance said crude and product prices rose sharply, with Dated Brent crude averaging US$97 per barrel, 40.6 per cent above a year earlier, and fuel cracks, a measure of refining margins, running at three to 3.7 times their level a year earlier.
Chairman Mukesh Ambani said tight fuel markets were behind an especially strong quarter for the business. Anant Ambani, an executive director, called it the segment's best quarterly performance ever.
Jio, retail and debt
Jio Platforms' EBITDA was Rs 21,879 crore, 16.6 per cent higher, on revenue of Rs 47,485 crore, which grew 11.3 per cent. Its profit after tax of Rs 8,387 crore was up 13.7 per cent, though a heavier finance bill, following the capitalisation of 5G assets in March, held it back. Average revenue per user was Rs 218.8 a month, up from Rs 211.4, and the company had 542.4 million subscribers, including 300 million on 5G.
Reliance Retail Ventures posted a profit after tax of Rs 2,611 crore, down 24.3 per cent. EBITDA before a one-time impairment charge was Rs 6,228 crore, down 8.6 per cent, and the retail unit's EBITDA margin was 7.8 per cent, down 120 basis points. Executive director Isha Ambani said the new model built around digital commerce and business-to-business channels is working and is being funded by profits from offline stores.
Net debt was Rs 1,17,140 crore at the end of September, down from Rs 1,22,914 crore in June, and net debt now stands at 0.47 times annualised EBITDA, against 0.57 times in June. Capital spending in the quarter was Rs 38,153 crore.
The results also covered Jio Platforms' public offering, India's largest, which was completed with the listing on 28 October. Of the money raised, roughly Rs 27,500 crore has been used to repay early the external commercial borrowings of Reliance Jio Infocomm. Mukesh Ambani said the offering had "set multiple global benchmarks".