India’s biggest company by market capitalization, Reliance Industries posted its September quarter (Q2FY22) results on Friday, 22 October 2021.
The company’s consolidated revenues (topline) stood at ₹1,91,532 crore, up 49% year-on-year. It posted record operating profit of ₹30,283 crore, which grew 30% year-on-year. Its consolidated profit after tax also went up 46% year-on-year to ₹15,479 crore.
The company’s Oil-to-Chemical segment saw a year-on-year growth of 58%, which boosted the overall revenues. The growth was aided by two main factors: rising oil prices and higher volumes.
Reliance’s retail segment grew 10.5% year-on-year in the September quarter and its revenues are above pre-pandemic levels. Revival in consumer sentiments amid the festival season, relaxations in curbs and large-scale vaccination helped the recovery in the business.
The Telecom business, Jio’s average revenue per user (ARPU) grew 3.7% quarter-on-quarter. ARPU is around ₹144 at the moment. The company is also planning to make its JioPhone next, which will be more widely available during the Diwali festive season.
Of late, Reliance made a series of strategic investments, which gives clues about the company's future direction.
For example, Reliance invested $50 million in Ambri Inc. which is a US-based company.
The company acquired a 40% stake in India-based solar EPC contractor, Sterling & Wilson Solar Ltd (SWSL). Further, it also acquired a 100% stake in Norway-based solar panel maker REC Solar Holdings.
On the retail side, the roll-out of 7-Eleven convenience stores, acquisition of nearly 96% stake in micro-delivery service provider Milkbasket, and stakes in ethinic brand Ritu Kumar and Manish Malhotra’s brand are some of the significant developments for Reliance.
In the current financial year, the company's share price has risen by 31%. On the other hand, the Nifty50 index has risen by almost 23%, which shows that Reliance Industries has outperformed the Nifty50.
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