Quarterly Result Updates : Reliance Industries and Others

Quarterly earnings announcement season is here. Hence every company will be announcing their performance for the previous quarter. This makes the investors and traders shift their long term and short term positions based on the future forecast and the current earnings of the firm. 

When the quarterly earnings are going to be announced every investor and trader is eagerly waiting for the results of Reliance Industries. The reason behind this is the weightage of this mammoth stock in the Indian Stock Market. It has the strength to drive the Indian markets to new highs without support from any other sector or company and vice versa. Hence everyone watches closely when the Reliance Industries announce their quarterly results and future forecasts. 

Reliance Industries

The mammoth of the Indian Stock markets has been able to achieve double digit growth. The company achieved 19.11% growth in the profit figures on a year to year basis. Against this the Quarter on quarter growth was 22.21%. The Earnings before interest, tax, depreciation and amortisation was 180.7 Billion Rs and the profit after tax was reported as 138.72 billion Rs. The figures of earnings before interest, tax, depreciation and amortisation for the entire year account to 671 Billion Rs and 442 Billion Rs for profits after tax. 

The Oil to Chemicals business earned roughly 148.2 billion Rs which is 22.4% more on a Quarter on Quarter basis. The Gas business’s EBITDA was Rs. 38.4 Billion Rs which is again 1% more o a QOQ basis. The telecom business’s Earnings before interest, tax, depreciation and amortisation was 122 Billion Rs and the profit after tax was 47.2 Billion Rs. The entire year’s Earnings before interest, tax, depreciation and amortisation accounted for 466 Billion Rs and PAT was 182 Billion Rs for the entire year.

Company Insights

The Reliance Group believes in the positive growth of the Oil to Chemicals business in the upcoming years. The company also expects a significant cash flow and earrings to be generated from the O2C chain. On the other hand the telecom company of Reliance “JIO”, is maintaining its dominance in the telecom industry. The Reliance JiOMart is also making a strong mark in the retail segment and hence overall the growth of the company in the major business segments seems positive. Apart from this the company has continued to progress in the New Energy Giga factories. Thus the transition of the company to a cleaner energy mode is on the go with a constant sustainable growth. 

Other Information

The Oil and Gas business of the firm has witnessed a 126% Year on year growth to 4556 Crore Rs. On the other hand Earnings before interest, tax, depreciation and amortisation has gone up by 144.3% with 3801 Crore Rs on a yearly basis. As per the estimates the oil and gas business of the company is maintaining to contribute 30% of India’s total production of gas. 

The O2C business of the firm recorded an EBITDA of 16293 Crore Rs. However, the revenue of the firm fell by 11.8% on a yearly basis to 128633 Crore Rs. 

Reliance’s Operating profit boosted due to multiple reasons. The Conglomerate’s EBITDA increased by 23.1% at 154691 Crore Rs. The Digital services segment of the firm achieved a significant growth in the EBITDA figures which improved the margins and revenue as well. The growth in the retail segment at 44.7% came along with quick expansion in the segment. 

The retail business accounted for a 12.9% jump in net profit to 2415 Crore Rs. The revenue of the firm was up by 19.45% at 69627 Crore Rs. The EBITDA was recorded at 4914 Crore Rs at 32.6% increase in the same. 

Combined Figures

The overall business of the firm witnessed a marginal increase in revenue at 2.1%. The revenue was 216376 Crore Rs in comparison to 211887 Crore Rs in previous year’s quarter. The revenue for December 2022 was 220592 Crore Rs which means that the quarterly revenue decreased by 1.9% this time. The net profit of the entire conglomerate was at 19299 Crore Rs which is 19.11% more than than the previous year’s arthur. The profit after tax was at 16203 Crore Rs. 

Reliance JIO and Reliance Retail

The earnings of Reliance Jio was at 18207 Crore Rs which was 22.9% higher than the previous year’s figure of 14817 Crore Rs. The revenue of Reliance stood at 90786 Crore Rs. Reliance Retail on the other hand posted a revenue of 67374 Crore Rs which is 17% more than the previous year’s 4th Quarter. The net profit of the retail business stood at 2400 Crore Rs.

Overall the earnings and financial performance of the conglomerate seems positive to a higher growth prospects in future. Hence the Indian markets responded positive post the earnings announcements of the Reliance Industries.