Reliance Industries Profit Declines 7% To Rs 12,273 Crore In June Quarter

Reliance Industries revenue in retail segment was impacted by the second wave of Covid-19 pandemic.

Reliance Industries Profit Declines 7% To Rs 12,273 Crore In June Quarter

Jio's average revenue per user improved to Rs 138.4 per user per month.

The country's most valued company - Reliance Industries - on Friday reported net profit of Rs 12,273 crore in quarter ended June 30, 2021, marking a decline of 7.25 per cent from the same quarter last year on the back of increase in total expenses. Reliance Industries total expenses in the quarter jumped 50 per cent annually to Rs 1.31 lakh crore. The oil-to-telecom conglomerate's revenue from operations advanced 58 per cent to Rs 1.44 lakh crore compared with Rs 91,238 crore in the year ago period.

Reliance Industries earnings before interest, tax, depreciation and amortization (EBITDA) also known as the operating profit came in at Rs 27,550 crore up 27.6 per cent.

Reliance Industries revenue in retail segment was impacted by the second wave of Covid-19 pandemic, Reliance Industries said in a stock exchange filing.

"The outbreak of corona virus (COVID-19) pandemic globally and in India is causing significant disturbance and slowdown of economic activity. The Group's operations and revenue were impacted due to COVID-19. During the current quarter, there is no significant impact other than in Retail segment," Reliance Industries said.

Reliance Retail's net profit more than doubled to Rs 962 crore while its EBITDA came in at Rs 1,941 crore, up 80 per cent. During the quarter, Reliance Retail opened 123 new stores taking the total number of operational stores to 12,803 stores, Reliance Industries said.

The company's telecom arm - Reliance Jio reported strong performance in the April-June period as its net profit jumped 45 per cent annually to Rs 3,651 crore on the back nearly 10 per cent increase in revenue which came in at Rs 18,952 crore. Jio's average revenue per user (ARPU), a key metric to evaluate the performance of a telecom company, improved to Rs 138.4 per user per month from Rs 138.2 in the previous quarter.

Reliance Jio's total customer base as on end of the first quarter of current financial stood at 440.6 million, up 42.3 million customers annually, Reliance Industries 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," Mukesh Ambani, Chairman and Managing Director, Reliance Industries Limited said in a statement.

"COVID-related restrictions on store operations during the quarter impacted our Retail business operations and profitability. This is a temporary phenomenon. We remained 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 am confident that the retail business is poised to create exponential value and growth," Mr Ambani added.

Reliance Industries shares ended 0.74 per cent lower at Rs 2,105 ahead of earnings announcement.