Reliance Industries Limited 1Q FY22 net profit surges 66.7% to Rs 138bn

Reliance Industries Limited has reported a 66.7% increase in its profit after tax for the quarter ended 30 June 2021 (1Q FY22) to INR 13,806 crores ($1.9 billion), compared to INR 8,282 crores ($1.11 billion) in net profit for the same period in the previous fiscal year.

The Indian conglomerate earned revenue of INR 158,862 crores ($21.4 billion), an increase of 57.4% compared to revenue of INR 100,929 crores ($13.56 billion) in 1Q FY21.

Reliance Industries Limited attributed the increase in revenue mainly on the revenue of its oils to chemicals unit (O2C) increasing 75.2% year-over-year (YoY) to INR 103,212 crores because of higher price realizations in the segment.

There was a two-fold jump in oil and gas revenue to INR 1,281 crores, courtesy of incremental production from the KG D6 block due to the ramp-up of production from the R-Cluster gas project.

The conglomerate also said that the revenue was driven by the continued upward trend in revenues of its digital services segment with robust customer traction, and retail segment revenue being higher compared to the previous year’s quarter when there was a strict lockdown amid the first wave of the Covid-19 pandemic in India.

Reliance Industries Limited reported a 71.8% surge in the exports (including deemed exports) from its India operations to INR 56,156 crores ($7.6 billion), compared to INR 32,681 crores in the same quarter of the previous year.

Mukesh D Ambani – Chairman, and Managing Director of Reliance Industries Limited 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 FY 2022 clearly demonstrate the resilience of Reliance’s diversified portfolio of businesses that cater to large parts of the consumption basket.

“In our O2C business, we generated strong earnings through our integrated portfolio and superior product placement capabilities. Along with our partner bp, we commissioned the satellite cluster in KG D6 and continued to ramp up production, contributing to 20 per cent of gas production in India. This will be a major contribution to our country’s energy security.”

Earlier this month, the conglomerate’s retail division — Reliance Retail Ventures signed a deal worth around $470 million to acquire a stake of 66.95% in Just Dial, an Indian local search engine platform.