Reliance Industries falls 3% post March quarter results; slips 9% in 6 days

RIL reported a consolidated net profit of Rs 16,203 crore for Q4FY22, up 22.5 per cent over the year-ago period's Rs 13,227 crore but slightly short of expectations.

Shares of Reliance Industries (RIL) fell up to 3 per cent to Rs 2,542.1 on the BSE in Monday’s intra-day trade after Mukesh Ambani-led oil-to-chemicals (O2C) company on Friday reported a consolidated net profit of Rs 16,203 crore for the quarter ended March 31, 2022 (Q4 FY22), up 22.5 per cent over the year-ago period’s Rs 13,227 crore, but slightly short of expectations.

The stock was quoting lower for the sixth straight trading day, down 9 per cent during the period. It had hit a record high of Rs 2,855 on April 29, 2022. In comparison, at 09:25 am, the S&P BSE Sensex was down 1.5 per cent at 54,039 points.

RIL’s consolidated revenue from operations surged 38.6 per cent year-on-year (YoY) to Rs 2.07 trillion for the reported quarter, which met street estimates, according to Bloomberg.

Earnings before interest, taxes, depreciation, and amortization (ebitda) grew 34.3 per cent YoY to Rs 31,366 crore, driven by O2C (24.8 per cent up YoY) and digital service (25.3 per cent YoY) mainly on account of higher refining earnings in O2C coupled with tariff hike undertaken in December 2021. Revenues and Ebitda for the quarter were its highest ever. CLICK HERE FOR MORE

“Q4FY22 results were below our estimates on account of lower than expected O2C profitability. However, overall commentary remains positive given global refining scenario is favourable in near term as petrol & diesel product cracks are trading at multi-quarter highs,” ICICI Securities said in a note.

Retail segment added 714 new stores with overall stores crossing 15,000 benchmark while revenue surpassed pre-Covid levels.

In the telecom business, while sim consolidation led third consecutive quarter of net subscriber decline, positive surprise was on higher ARPU growth and modest beat at EBITDA levels owing to higher topline.

The ARPU saw a growth of 10.6 per cent QoQ at Rs 167.6, the brokerage said. “We remain positive on the company with investment in new energy verticals being key monitorable going ahead,” it added.