Energy price rise helped by strong revenue growth after oil and gas, refining
Energy price rise helped by strong revenue growth after oil and gas, refining
Reliance Industries Limited (RIL) reported a 20% year-on-year increase in consolidated net profit to ₹18,021 crore in the fourth quarter, aided by strong performance across several of the group’s businesses.
The retail and telecom company’s consolidated revenue rectification rose 35.1% to ₹2,32,539 crore for the three months ended March 31, from ₹1,72,095 crore in the year-ago period.
RIL said full-year revenue and earnings were boosted by businesses spanning oil-to-chemical (O2C), oil and gas, retail and digital services.
FY22 consolidated revenue of ₹ 7,92,756 crore grew 47%, while net profit grew by 26% to ₹ 67,845 crore.
Jio Platform Ltd. registered a growth of 17% in the annual consolidated gross revenue of ₹95,804 crore. Consolidated net profit for the year grew 23.6% to ₹15,487 crore. Total data traffic of 91.4 billion GB, up 46.3% over the previous year. The company said digital services revenue was primarily driven by higher ARPUs and growth in wireline services.
Reliance Retail reported Gross Revenue of ₹1,99,704 crore, a growth of 26.7% for the full year. Net profit grew 28.7% to ₹7,055 crore. The area of operation of the retail branch increased from 33.8 million sq ft a year ago to 41.6 million sq ft. RIL said broad-based growth across all consumption baskets has led to significant growth in segment revenues.
RIL’s net debt as on March 31 was ₹34,812 crore. The board recommended a dividend of ₹8 per share.
“Despite the current challenges of the pandemic and geopolitical uncertainties, Reliance has delivered a strong performance in FY22,” Chairman and Managing Director Mukesh Ambani said. “Our O2C business has proven its resilience and demonstrated strong recovery despite volatility in energy markets,” he added.
“The gradual opening up of economies, along with continued high utilization rates across sites and improvement in transportation fuel margins and volumes, have driven our O2C earnings up,” Mr Ambani said.
He said the retail business has crossed the 15,000-store benchmark and JioFiber has emerged as the largest broadband provider in India. He added that the oil and gas business is now contributing 20% of the domestic gas production.
RIL said the O2C revenue was driven by higher crude oil prices and higher price realization of downstream products coupled with higher volumes of refining products. The segment registered a revenue of ₹5,00,900 crore with a growth of 56.5%. EBITDA grew by 38% to ₹52,722 crore.
Revenue in the company’s oil and gas business more than tripled to ₹7,492 crore. Segment EBITDA grew sharply to ₹5,457 crore, with an EBITDA margin of 72.8%. “This was mainly due to higher production due to higher gas price realization in KGD6 and CBM after commencement of gas production from R-cluster and Sat-cluster fields from KGD6,” RIL said.