InvestorQ : What is your quick view on the Reliance Industries results announced for Q4FY22?
Debbie Mascarenhas made post

What is your quick view on the Reliance Industries results announced for Q4FY22?

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Rutuja Nigam answered.
1 week ago
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Reliance Industries total sales revenues grew 36.8% in Q4FY22 to Rs211,827 crore. FY22 revenues came close to $100 billion with 40% revenues coming from the consumer businesses with total registered customer base across platforms at 19.30 crore. In the high growth digital and telecom business, the ARPUs or average revenues per user stood at Rs.167.60. Reliance fully exited its shale assets in the US during the previous fiscal year.

Reliance Industries

Rs in Crore

Mar-22

Mar-21

YOY

Dec-21

QOQ

Total Income (Rs cr)

₹ 2,11,827

₹ 1,54,896

36.75%

₹ 1,91,271

10.75%

EBITDA (Rs cr)

₹ 25,597

₹ 18,839

35.87%

₹ 24,000

6.65%

Net Profit (Rs cr)

₹ 16,203

₹ 13,227

22.50%

₹ 18,549

-12.65%

Diluted EPS (Rs)

₹ 23.95

₹ 20.13

₹ 27.76

EBITDA Margins

12.08%

12.16%

12.55%

Net Margins

7.65%

8.54%

9.70%

  

Let me talk about the full year EBITDA for Reliance Industries and how the various verticals contributed to the growth in EBITDA. If you look at FY22 over FY21, the oil to chemicals (O2C) vertical contributed 52% to the EBITDA as higher fuel cracks and higher volumes helped it along.

Reliance Retail has over 2,500 stores, with the latest Future store acquisition. After 52% contribution to EBITDA from O2C, comes digital at 22.2% and oil & gas extraction at 18.5%. However, the share of retail in EBITDA was just about 9%. Reliance’s diversified revenue stream made the best of the revival in macros. FY22 EBITDA crossed Rs1.25 trillion.

Now for the bottom line of Reliance Industries. Net profits for the Q4FY22 was up 22.5% at Rs16,203 crore. This was largely supported by the 35.8% growth in EBITDA for the quarter, helped by the O2C business principally. RIL had embarked on a deleveraging exercise in 2020 and after net debt touching zero levels last quarter, it is still at much manageable levels of just about Rs34,815 crore.

Net profit margins were at 7.65% in Q4FY22 compared to 8.54% in the Q4FY21 quarter, with the fall being largely explained by the profit growth not keeping pace with the sale growth amidst a spike in operating costs across all businesses. On a sequential basis, net margins for Q4FY22 were lower compared to 9.70% in Q3FY22, which is over 200 bps lower.

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