RIL Q1 net profit up 4 per cent at Rs 13,806 crore; Covid hits revenue

According to RIL’s exchange filings, the company has recorded a total consolidated revenue of Rs 1.58 lakh crore during the quarter (Q1FY22) and a net profit of Rs 13,806 crore.
For representational purpose.(File Photo | Reuters)
For representational purpose.(File Photo | Reuters)

CHENNAI:  Oil-to-telecom conglomerate Reliance Industries (RIL) disclosed on Friday that it has recorded a 4.2% increase in its consolidated net profit for the first quarter (April-June 2021) of the current financial year. On a sequential, or quarter-on-quarter basis, however, the company recorded a sharp fall in revenues and a moderate decline in net profit due to the impact of the second wave of Covid-19 on the 
economic activities.

According to RIL’s exchange filings, the company has recorded a total consolidated revenue of Rs 1.58 lakh crore during the quarter (Q1FY22) and a net profit of Rs 13,806 crore.  In comparison, it had recorded a total revenue of just over Rs 1 lakh crore during the corresponding quarter of the previous financial year—a period which had seen the most stringent national lockdown to have been imposed after the Covid-19 outbreak. During the last quarter of the previous financial year ended March 2021, however, Reliance had recorded a total revenue of Rs 1.72 lakh crore.

Similar to the trend in revenue figures, RIL’s profit numbers also showed a substantial rise when compared to the corresponding quarter of the previous year, but a decline on a quarter-on-quarter basis due to the impact of the second wave. 

In Q1 of last fiscal, RIL had recorded a net profit of Rs 13,248 crore (with around Rs 5,000 crore out of this being recorded as an exceptional gain from an investment made by BP Plc in RIL’s retail fuel business). In the last quarter of the last fiscal year, RIL had recorded a net profit of Rs 14,995 crore. 

Out of its major business segments, RIL saw robust performance from the telecom and digital unit Jio Platforms, while the oil and retail segments trailed behind. According to Reliance’s filings, Jio Platforms has recorded a 45% increase in net profit year-on-year and a 4% rise quarter-on-quarter at Rs 3,651 crore. But while Reliance Retail and the oil-to-chemicals units saw an improvement in key metrics year-on-year, on a sequential basis, they contracted due to the impact of the second Covid wave.

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