Reliance Industries Q2 Results Review

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Reliance Industries Ltd.’s Q2 FY23 consolidated revenue rose 37% YoY/5% QoQ (23% beat) mainly fueled by higher crude oil prices, while Ebitda grew 20% YoY (in line) as margin contracted 190 basis points YoY to 13.6%.

Profit after tax remained flat YoY (in line), dragged by lower operating profit, higher depreciation and finance cost.

RJio’s standalone revenue rose 3% QoQ (20% YoY; in line) supported by moderate subscriber/average revenue per user growth of 2%/1% sequentially.

Ebitda/profit after tax improved 5%/4% QoQ (28% YoY; in line), respectively, with 90 bps margin expansion to 51% driven by lower spectrum usage charge towards 5G.

Reliance Retail posted healthy revenue/Ebida growth of 45%/51% YoY, respectively, (14% beat on Ebitda) in Q2 FY23, led by the waning impact of the pandemic, improving customer sentiment and early onset of festivities.

Oil-to-chemicals Ebitda came in 5% below estimate at Rs 120 billion (down 3% YoY) in Q2 FY23. Ebtda/million tonne stood at ~$93 (down 7% YoY, down 45% QoQ). Production meant for sale stood at 16.2 metric million tonne in Q2 FY23.

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