RIL Q2 Results: Profit Falls 33% QoQ; Reliance Retail, O2C, Jio Businesses Show Steady Growth
Reliance Industries Ltd. has logged a 33% slump in its consolidated bottom-line to Rs 18,165 crore in the quarter ended September, whereas the revenue rose by a modest 4% to Rs 2,54,623 crore in the same period.
Oil-to-Chemicals Business
The oil-to-chemicals business posted Ebitda of Rs 15,008 crore, up from Rs 14,511 crore in the preceding quarter. The increase was driven by stronger fuel cracks and improved polymer spreads, partly offset by weaker polyester margins. This is a significant development for Indian investors, as it indicates a steady growth in the oil-to-chemicals segment. To know more about the oil to chemicals industry, click here.
Retail Business
The retail business recorded Ebitda of Rs 6,817 crore, compared with Rs 6,381 crore in the June quarter. Festive demand lifted sales across grocery, fashion and consumer electronics. Grocery revenue grew 23% year-on-year, fashion and lifestyle rose 22%, and consumer electronics increased 18%. This growth in the retail segment is a positive sign for Indian investors, as it indicates a strong demand for consumer goods. For more information on retail sector in India, visit our website.
Fashion & Lifestyle Business
The Fashion & Lifestyle business delivered strong growth with the onset of the festive season. Emerging Formats such as Yousta and Azorte registered a growth of 66% year-on-year, and Yousta reached the significant milestone of 100 stores. There was a pickup in ethnic wear categories during the early festive period, and smart casuals and semi-formals also performed well, strengthening the own brands play.
AJIO and Shein
AJIO delivered steady growth, led by a wider assortment, promotions, and festive buying. AJIO expanded its catalogue to over 2.7 million options, representing a 35% year-on-year increase, and launched several new brands on its platform. Compared to the platform average, the service achieved superior results, including a 16% higher Average Selling Price, 17% better conversion rates, and 500 basis points lower sales returns. Shein surpassed 6 million app installs, reached 11.4 million Monthly Active Users (MAU) while its portfolio expanded to more than 25,000 options.
Consumer Electronics Segment
The consumer electronics segment saw strong category performance with Laptops growing by 37%, Mobiles rising 22%, and Appliances up 10% year-on-year. This growth in the consumer electronics segment is a positive sign for Indian investors, as it indicates a strong demand for electronic goods. To know more about the consumer electronics industry, click here.
JioMart
JioMart added 5.8 million new customers. This represented a quarter-on-quarter growth rate of 120%. JioMart continued to expand Quick Hyper-Local deliveries, registering 42% quarter-on-quarter growth and over 200% year-on-year growth in average daily orders. The platform’s seller base grew 20% year-on-year, and the live catalogue selection was further expanded to augment the customer choice. This growth in JioMart is a significant development for Indian investors, as it indicates a strong growth in the e-commerce segment. For more information on e-commerce industry in India, visit our website.
Conclusion
In conclusion, the Q2 results of Reliance Industries Ltd. indicate a steady growth in the oil-to-chemicals, retail, and consumer electronics segments. The growth in JioMart is also a positive sign for Indian investors. However, the 33% slump in the consolidated bottom-line is a concern. Indian investors should keep a close eye on the company’s future developments and stock market news to make informed investment decisions.
