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- 24 Jan 2022
- ICICIdirect Research
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RIL EARNINGS GROW 41.6% YOY
RELIANCE - 1309 Change: -14.35 (-1.08 %)News: Revenue was up 54.3% YoY to | 191271 crore in Q3FY22 as all key segments reported revenue growth. It grew 9.9% QoQ led by retail and O2C segments. EBITDA was at Rs.29706 crore, up 37.7% YoY. EBITDA growth was mainly driven by O2C (up 38.7% YoY) and oil & gas (up 508x) on account of better downstream demand & margins in O2C and growth in gas output as well as realisation. Exceptional gain of Rs.2836 crore was reported owing to sale of shale gas assets in North America. Subsequently, PAT stood at Rs.18549 crore, up 41.6% YoY.
Views: RIL’s results were ahead of estimates on profitability front on account of sale of US shale gas assets. RJio results were a mixed bag with ARPU growth of 5.6% QoQ being a positive surprise whereas SIM consolidation led to net subscriber decline of 8.5 mn QoQ. On retail front, footfalls reached 95% of pre-Covid level and robust store addition (837 in Q3FY22) continued. Higher feedstock and product prices limited EBITDA growth to 6.4% QoQ while E&P profitability was driven by 69% increase in realisation for gas output from KG basin. We expect the subscriber addition traction to recover with JioPhone Next picking up while ARPU hike benefits will accrue over the next couple of quarters. Downstream margins will be the key for O2C earnings. We remain positive on the stock.
Impact: Neutral