Reliance Industries Ltd. (RIL), a major oil-to-telecom company, reported on Friday that its consolidated net profit for the June quarter decreased 6.09 percent year over year (YoY) to Rs 18,258 crore from Rs 19,443 crore in the same quarter previous year. Profit (attributable to the owners) decreased 10.82% YoY to Rs 16,011 crore from Rs 17,955 crore. Profit was generally expected to decline between 8% and 17%, according to analysts.
The Mukesh Ambani-led company reported a 5.31 percent YoY fall in its consolidated income from operations to Rs 2,10,831 crore from Rs 2,22,664 crore in the same period last year. Analysts anticipated a 2–8% YoY decline in sales for the corporation with its headquarters in Mumbai.
The company board declared a dividend of Rs 9 per share for FY23. This is against a dividend of Rs 8 per share (dividend yield 0.30 per cent) in FY22 and Rs 7 per share (dividend yield 0.35 per cent) in FY21.
“We shall inform you in due course the date on which the company will hold its Annual General Meeting for the year ended March 31, 2023 and the date from which dividend, if approved by the shareholders, will be paid or warrants thereof dispatched to the shareholders,” RIL said.
Ebitda for the quarter rose 5.1 per cent YoY to Rs 41,982 crore ($ 5.1 billion). Ebitda growth, RIL said, was led by consumer and upstream businesses, which offset decline in O2C earnings. O2C earnings were lower due to a sharp fall in fuel cracks from exceptionally high levels in Q1FY23.
“We shall inform you in due course the date on which the company will hold its Annual General Meeting for the year ended March 31, 2023 and the date from which dividend, if approved by the shareholders, will be paid or warrants thereof dispatched to the shareholders,” RIL said.
“Reliance’s strong operating and financial performance this quarter demonstrates the resilience of our diversified portfolio of businesses that cater to demand across industrial and consumer segments,” Chairman and Managing Director Mukesh Ambani said. Strong subscriber base growth has been made possible by Jio’s extensive range of high-quality offers at reasonable pricing points, which is reflected in the financial performance of the digital services industry. Jio’s True 5G service’s quick rollout is accelerating the country’s digital transformation at an unheard-of rate.
Ambani said that the retail sector experienced strong development, with swift store expansion and consistent foot traffic growth. Scaling up, giving value to consumers, and generating synergistic advantages for merchant partners are the contributions of digital and new commerce projects.
Despite ongoing global macro difficulties, O2C company shown resilience. “The start of MJ field operations throughout the quarter will improve India’s energy security, and in the upcoming months, overall production from the KGD6 block will rise to about 30 MMSCMD. Jio Financial Services Limited’s demerger process is progressing as planned with all necessary permissions in place. According to Ambani, Jio Financial Services is ideally situated to promote financial inclusion in India.
RIL said depreciation expense for the quarter increased by 31.7% year-on-year to Rs 1.5 billion.
Funding costs increased by 46% year-on-year to Rs 5,837 million (US$ 711 million), mainly due to higher interest rates and loan balances. Income tax expense for the June quarter was $6.112 billion ($745 million), lower than the same period last year due to lower deferred taxes.