RIL Q2 earnings disappointing

RIL Q2 earnings disappointing

Shares of Reliance Industries (RIL) slipped 5% on Monday to hit over a three-month low after the company reported 15% decline in its net profit for the fiscal second quarter to September 30.
On Friday, the oil to telecom giant posted a profit of Rs 9,567 crore for the fiscal second-quarter ended September, beating analysts’ estimates. While profit declined because of lower revenues from its oil and gas business.
Jio’s net subscriber addition was on a lower side at 7.3mn to reach 405.6 mn at the end of September quarter. Its ARPU improved at Rs 145 from Rs 140.3 quarter on quarter.
Retail business margin improved sequentially to 4.9% from 3.4% but was lower at 5.6% year-on-year due to a decline in revenues for the fashion & lifestyle and consumer electronic segments.
Further, petchem margins improved quarter on quarter to 20.1% from 17.6% while volume also grew 9% at 9.7mmt. However, EBITDA at refinery business dipped to $3.7/bbl from $4.3/bbl.
However, the perchem revenue fell 23% to Rs 29,665 crore and pre-tax profit dropped 33% at Rs 5,964 crore.
RIL has raised an unprecedented Rs 2.5 lakh crore since April through stake sales in the digital and retail units and a rights issue in RIL. Out of this, over Rs 1.76 lakh crore has already flowed into the company, helping it achieve net zero debt status.

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