Billionaire Mukesh Ambani, led by Reliance Industries Limited (RIL), on Friday reported net profit of Rs 13,656 crore for the quarter ended September 2022, marking a decline of 0.17% from Rs 13,680 crore during the same period last year. On a sequential basis, its profit fell 24% from Rs 17,955 crore in the June quarter. The sharp decline in profits came after the government imposed a windfall tax on exports of refined petroleum products.
“Government of India imposed Special Additional Excise Duty (SAED) on export of transportation fuels effective July 1, 2022 which negatively impacted the profit for the quarter determined at Rs 4,039 crore” , the country’s most valuable company said in an exchange filing.
However, its operating revenue grew by 34% pa to Rs 2.32 lakh crore.
Its telecoms arm, Reliance Jio, reported a net profit of Rs 4,518 crore for the quarter ended September 2022, marking a 28% increase from Rs 3,528 crore in the same quarter last year. This is the first earnings report after Akash Ambani took control of the company as chairman in June this year.
Jio’s operating revenue stood at Rs 22,521 crore, up 20% from Rs 18,735 crore in the same period last year.
Jio’s average revenue per user (ARPU), a key measure of profitability, came in at 177.2 rupees per user per month, compared to 143.6 rupees in the same quarter last year.
Jio’s earnings before interest, tax, depreciation and amortization (EBITDA), also known as operating profit, stood at Rs 12,011 crore, up 29% annually.
The operating profit of its retail arm, Reliance Retail, was Rs 4,404 crore, up 51% on strong growth of 43% in gross revenue which rose at Rs 64,920 crore.
The company added 795 stores during the quarter, bringing the total number of stores to 16,617 stores with an area of 54.5 million square feet.
The total employee base of its retail unit now stands at a record 4 lakh, making Reliance Retail one of the largest employers in the country, the Mumbai-based organization said.
Revenue from Reliance’s petroleum-chemicals business increased by 32.5% to Rs 1,59,671 crore due to higher crude oil prices.
RIL production for sale was down 3.6% year-over-year (YoY) with the planned overhaul of primary and secondary units at the SEZ refinery for M&I. RIL’s cracker operating rate was 95% in Q2 FY23, compared to 87% in Q1 FY23.
Segment EBITDA for the September quarter declined by 5.9% year-on-year to Rs 11,968 crore, mainly due to the introduction of SAED on transport fuels and lower polymer deltas.
“We have seen consistent subscriber net additions and higher engagement in the digital services segment. Jio has announced a beta trial for its industry-leading standalone 5G services and is moving quickly for an ambitious and fastest rollout ever. of True 5G on a pan-India basis. Our Retail business delivered record performance with a strong recovery in footfall, store additions and digital onboarding. Reliance Retail continues to deliver a compelling shopping experience proposition exceptional and superior value across all consumer baskets and price ranges,” said Ambani, the company’s president and CEO.
“Our O2C business performance reflects subdued demand and a low margin environment in downstream chemicals. Transportation fuel margins were better than last year, but significantly lower sequentially. The segment’s performance was also affected by the introduction of special additional excise duties during the quarter to ensure stable supply and less volatility in the domestic market,” he added.
Reliance Industries shares ended down 1.16% at Rs 2,471.75, before the announcement of its results.