RIL Q4 net up 20%, helped by a strong show across all units


Oil & Gas and Refining posted robust sales increases, helped by higher energy prices

Oil & Gas and Refining posted robust sales increases, helped by higher energy prices

Reliance Industries Ltd. (RIL) reported fourth quarter consolidated net income up 20% year-on-year to ₹18,021 billion, supported by a strong performance across the conglomerate’s multiple businesses.

The refining-to-retail and telecommunications company’s consolidated sales for the three months ended March 31, increased 35.1% to ₹2,32,539 billion compared to ₹1,72,095 billion in the same period last year.

Revenue and earnings for the full year were boosted by its Oil-to-Chemicals (O2C), Oil & Gas, Retail and Digital Services businesses, according to RIL.

Consolidated sales in FY22 increased 47% to ₹7,92,756 billion, while net income increased 26% to 67,845 crore.

Jio Platform Ltd. reported 17% growth in annual consolidated gross sales of ₹95,804 crore. Consolidated net income rose 23.6% to 15,487 crore. Total traffic was 91.4 billion GB, up 46.3% year over year. Digital services revenue is primarily due to higher ARPU and expansion of fixed-line services, the company said.

Reliance Retail recorded gross sales of ₹1,99,704 crore for the full year, an increase of 26.7%. Net income increased by 28.7% to ₹7,055 crore. The retail arm’s floor space expanded to 41.6 million square feet from 33.8 million square feet last year. Segment sales rose significantly, driven by broad-based growth across all consumer goods baskets, RIL said.

RIL’s net debt as of March 31 was ₹34,812 crore. The board recommended a dividend of £8 per share.

“Despite the ongoing challenges of the pandemic and heightened geopolitical uncertainties, Reliance delivered a robust performance in FY22,” said Chairman and CEO Mukesh Ambani. “Our O2C business has shown its resilience and has bounced back strongly despite the volatility in energy markets,” he added.

“The gradual opening of economies coupled with sustained high utilization rates across all sites and improving transportation fuels margins and volumes have boosted our O2C revenues,” noted Mr. Ambani.

He said the retail store has surpassed 15,000 stores and JioFiber has become the largest broadband provider in India. The oil and gas business now accounts for 20% of domestic gas production, he added.

RIL said O2C revenue was driven by the increase in crude oil prices and higher price realization of downstream products with higher volumes of refined products. The segment reported revenue of ₹5,00,900 crore, an increase of 56.5%. EBITDA rose 38% to £52,722 billion.

The company’s oil and gas business turnover has more than tripled to £7,492 million. Segment EBITDA increased strongly to ₹5,457 crore, with an EBITDA margin of 72.8%. “This was primarily due to higher production from KGD6 following the start of gas production from the R-Cluster and Sat-Cluster fields coupled with higher gas price realization in KGD6 and CBM,” RIL said.

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