Reliance Industries revenue in retail segment was affected by the second wave of Covid-19 pandemic.
RIL Q1 FY22 results HIGHLIGHTS: Mukesh Ambani-led Reliance Industries Ltd (RIL) reported net profit at Rs 12,273 crore in April-June quarter of FY22 on Friday, 23 July 2021.
RIL Q1 FY22 results HIGHLIGHTS: Mukesh Ambani-led Reliance Industries Ltd (RIL) reported Apr-Jun quarter FY22 net profit at Rs 12,273 crore, a fall of 7.25 per cent on-year. In the corresponding quarter of the previous fiscal, net profit stood at Rs 13,233 crore. RIL’s two major units Reliance Retail and Reliance Jio showed healthy topline growth with retail more than doubling net profit and telecom net profit growing by 45 per cent. The oil-to-telecom conglomerate’s revenue from operations rose 58.2 per cent to Rs 1.44 lakh crore, as compared to Rs 91,238 crore in the year-ago period. The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) grew to Rs 27,550 crore, from Rs 21,585 in the year-ago period.
RIL chairman Mukesh Ambani said:“I am happy that our company has delivered robust growth despite facing a highly challenging operating environment caused by the second wave of the COVID pandemic. The results of the first quarter of FY2022 clearly demonstrate the resilience of Reliance’s diversified portfolio of businesses that cater to large parts of the consumption basket”. He also said that COVID-related restrictions on store operations during the quarter impacted RIL’s retail business operations and profitability.
RIL share price fell 0.74 per cent to Rs 2,105.20 apiece on Friday, ahead of Q1 results. However, stock has surged nearly 12 per cent in three months and 3.7 per cent in six months. On a year-to-date (YTD) basis, it is up 7 per cent, while down a per cent from 52-week high.
Mr Ambani added,”COVID-related restrictions on store operations impacted our retail business operations and profitability during the quarter. This is a temporary phenomenon. We always focused on ensuring supplies of necessities, including food, grocery, health & hygiene products through a combination of online-offline channels. We stepped up our efforts in creating partnerships with small merchants and digital engagement with consumers. This is creating a newer and inclusive model of growth. I believe retail business is poised for exponential value and growth”.