Reliance Industries Ltd.’s first-quarter profit rose on better performance of oil-to-chemicals, retail and telecom businesses. Still, it missed estimates.
The Mukesh Ambani-led conglomerate’s consolidated profit rose 7.9% sequentially to Rs 19,443 crore in the quarter ended June, according to its exchange filing. That compares with the Rs 21,615.4-crore consensus estimate of analysts tracked by Bloomberg.
Higher finance cost as a result of increased interest rates, rupee depreciation and lower other income impacted the profits.
RIL Q1 FY23 Highlights (QoQ)
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Revenue from operations rose 5% to Rs 2,23,113 crore, against the estimated Rs 2,25,471 crore.
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Operating profit or earnings before interest taxes and depreciation rose 21% to Rs 37,997 crore, compared with the Rs 38,471-crore forecast.
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Operating margin stood at 17.3% versus 15.1% as of March.
The segment EBITDA for its Oil to Chemicals business was impacted by higher energy costs, crude official selling price and fuel retailing loss. Which means the company was not able to garner significantly discounted Russian crude from the global markets.
The company ended the quarter ended June with net debt of Rs 57,655 crore compared to Rs 34,815 crore at the end of March 2022. The rise in net debt is primarily on account of working capital requirement for businesses in the energy and product prices. The overall capex was managed by cashflow generation, said Srikanth Venkatachari, Joint CFO at Reliance Industries during earnings presentation.
Shares of Reliance Industries ended 0.67% higher before the results were announced, tracking the 0.69% rise in the benchmark Nifty 50.