Reliance Industries Q4 profit rises 22.5% to Rs 16,203 crore; first Indian company to cross $100 billion annual revenue
The company earned a net profit of Rs 60,705 crore from revenue amounting to Rs 7.92 lakh crore, or $102 billion.
Written by: Thinking Boxx Team
May 7, 2022 10:55:00 am
Reliance operates four business verticals -- O2C business includes its oil refineries, petrochemical plants, and fuel retailing business; a retail business that houses brick-and-mortar stores and e-commerce; digital services that cover telecom arm Jio; and new energy business. Reliance Industries (RIL) touches on a new milestone in the fourth quarter results for FY22. The Mukesh Ambani-backed company now becomes the first Indian firm to ever clock an annual revenue of more than a whopping $100 billion. The performance was due to strong growth across the operating business. Reliance Industries Limited on Friday became the first Indian company to earn a revenue of over $100 billion (about Rs 7.69 lakh crore) in a year, PTI reported. In FY22, RIL's annual consolidated revenue stood at ₹792,756 crore ($104.6 billion) rising by 47% yoy. The company's annual PAT neared the $10 billion mark, as it stood at ₹67,845 crore ($9 billion) increasing by 26.2% yoy. Annual consolidated EBITDA stood at ₹125,687 crore ($16.6 billion) up by 28.8% yoy. Billionaire Mukesh Ambani's Reliance Industries Ltd on Friday reported a 22.5 per cent rise in net profit for the quarter ended March on the back of bumper oil refining margins, steady growth in telecom and digital services and strong momentum in the retail business.
The oil-to-retail-to-telecom conglomerate's consolidated net profit rose to Rs 16,203 crore in the quarter ended 31 March, 2022 from Rs 13,227 crore, the firm said in a statement.
Reliance recorded strong growth in retail, digital services, and oil & gas business.
In a regulatory filing, the company said that between April 2021 and March 2022, it earned a net profit of Rs 60,705 crore from revenue amounting to Rs 7.92 lakh crore, or $102 billion.
The Mukesh Ambani-led conglomerate’s net profit for the quarter that ended in March increased by 22.5%. The company cited high margins in oil refining segment, growth in the telecom and digital sectors and strong momentum in the retail division for this figure. Annual revenue of retail business reached to nearly ₹2 lakh crore, while EBITDA clocked an all-time high of ₹12,423 crore ($1.6 billion). Meanwhile, the annual revenue of digital business crossed ₹1 lakh crore mark and its EBITDA stood at a record of ₹40,268 crore ($5.3 billion). Oil & Gas' annual operating profit reached seven years high of ₹5,457 crore ($720 million). Here are key highlights of the earnings:
In Q4FY22, RIL's profit to owners stood at ₹16,203 crore on a consolidated basis, increasing by 22.4% compared to ₹13,227 crore a year ago same period. Consolidated revenue jumped by 36.79% to ₹211,887 crore in Q4FY22 against ₹154,896 crore in the same quarter last year. The firm reported the highest-ever quarterly EBITDA (earnings before interest, taxes, depreciation and amortisation) of Rs 33,968 crore, up 28 per cent year-on-year.
O2C (oil-to-chemical) business EBITDA was up 25 per cent at Rs 14,241 crore, while digital services pre-tax earnings at Rs 11,209 crore were 25 per cent more than last year.
Retail EBITDA was up 2.5 per cent at Rs 3,712 crore and gas production from satellite fields in the KG-D6 block boosted oil and gas EBITDA over three folds to Rs 1,556 crore.
Consumer business now accounts for nearly 45 per cent of segment EBITDA.
The Russian-Ukraine conflict accelerated an already tight demand-supply situation for crude oil-petroleum products, leading to higher cracks or margins on petrol and diesel.
Despite a reduction in subscriber base over the last two quarters due to culling of inactive subscribers/SIM consolidation, better per-user revenue (ARPU) and the refinancing of debt boosted net profit of Jio -- the telecom and digital arm -- by about 24 pr cent to Rs 4,173 crore in January-March.
For the financial year ended March 31, 2022, Reliance Jio's consolidated net profit increased by about 23 per cent to Rs 14,854 crore.
Retail went from strength to strength on the back of multiple bolt-on acquisitions, continued investment in building complementary offline-to-online infra and recovery in momentum post COVID.
The firm has invested more than USD 1 billion in acquiring assets and building capabilities of Reliance Retail and has opened more stores in tier-2 and 3 cities.
The strides being made in green energy-related Giga factories and the reinvigorated upstream segment after a tepid 4-5 years provide a recipe for strong growth over the next 24-36 months.
The performance of the oil-to-chemical business was tempered by the weakness in margins of the petrochemical division because of higher crude oil prices as well as declining international margins for key products.
But the company, which during the pandemic declared itself net debt-free, saw its borrowings exceed cash in the fourth quarter of the current fiscal. Refinancing liabilities towards telecom spectrum saw its gross debt of Rs 2,66,305 crore exceeding cash balance of Rs 2,31,490 crore.
Reliance operates four business verticals -- O2C business includes its oil refineries, petrochemical plants, and fuel retailing business; a retail business that houses brick-and-mortar stores and e-commerce; digital services that cover telecom arm Jio; and new energy business.
Reliance Retail Ventures Ltds EBITDA rose 2.4 per cent to Rs 3,705 crore as demand improved across categories. Net profit from retail business was 4.8 per cent lower at Rs 2,139 crore in the quarter. It opened 793 new stores during the quarter, taking the total count to 15,196.
O2C segment's operating profit rose sequentially for the seventh straight quarter, aided by improved refining margins and prices.
Jio Platforms -- the digital arm -- reported a 23 per cent higher net profit at Rs 4,313 crore as the telecom segment's average revenue per user (ARPU) rose to Rs 167.6 per month, up 21.3 per cent.
It had a customer base of 410 million, less than 421 million in the previous quarter, mainly driven by SIM consolidation.
Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries Limited said, “Despite the ongoing challenges of the pandemic and heightened geo-political uncertainties, Reliance has delivered a robust performance in FY2021-22. I am pleased to report strong growth in our Digital Services and Retail segments. Our O2C business has proven its resilience and has demonstrated strong recovery despite volatility in the energy markets."
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