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Reliance Industries Limited, India's most valuable company, has announced a robust performance in its fiscal second quarter, exceeding analysts' expectations. The company's net profit surged by 9.4 percent from the previous quarter to Rs 16,563 crore, driven by remarkable growth in its telecom and retail businesses. This positive trend marks a significant achievement for Reliance Industries, showcasing the strength and resilience of its diverse portfolio.
The telecom unit, Jio, continued its strong performance with a remarkable 7.4 percent year-on-year increase in average revenue per user (ARPU), reaching Rs 195.1. This growth is attributed to a recent tariff hike, the full impact of which is expected to be realized over the next 2-3 quarters. Jio's commitment to 5G technology is evident with 148 million subscribers upgrading to the faster service, contributing significantly to the company's overall performance. Jio Platforms, which encompasses RIL's digital services businesses, achieved a record quarterly profit of Rs 6,536 crore, further solidifying its position as a key contributor to the company's success.
Reliance Retail Ventures, the company's retail arm, also reported a strong performance. The unit's profit after tax for the September quarter reached Rs 2,935 crore, representing a nearly 20 percent increase from the preceding quarter. Revenue from operations also saw a slight increase, reaching Rs 66,502 crore. This positive performance is driven by Reliance Retail's strategic focus on expanding its consumer touchpoints and product offerings across physical and digital channels. Their unique omni-channel retail model effectively caters to a diverse customer base.
Despite the robust performance in telecom and retail, Reliance Industries' Oil-to-chemicals (O2C) business faced challenges. The company reported a decline in Ebitda for the September quarter, primarily due to unfavourable demand-supply dynamics in the global market. However, the O2C business still managed to achieve a 5.1 percent revenue growth compared to the same period last year.
The Oil & Gas business showcased a strong performance, achieving a record quarterly EBITDA of Rs 5,290 crore, marking an 11 percent increase from the previous year. However, the segment's revenue decreased due to lower price realization, partially offset by increased gas and condensate volumes. The average price realized for KG D6 gas and CBM (coal bed methane) gas experienced a decline compared to the previous year.
In conclusion, Reliance Industries' Q2 results demonstrate the company's strong performance across its diverse business units. The telecom and retail segments are driving significant growth, while the O2C business navigates the challenges of the global market. With continued investment in digital services and a focus on expanding retail operations, Reliance Industries is well-positioned to maintain its leadership in the Indian market.
Source: Reliance Industries tops Q2 profit estimates on strong telecom, retail growth