RIL's retail biz crosses Rs 40,000 crore revenue: Takeaways from Q2 nos
Reliance Jio crossed Rs 5,000 crore quarterly EBITDA mark for the first time.
Consolidated bottomline of the company grew 18.30 per cent YoY on a 4.80 per cent YoY increase in top line. Consumer business formed one-third of the groups total Ebitda in Q2.
Here are the key takeaways from RIL's Q2 earning:
Jio rings in solid numbers
RIL's telecom arm Reliance Jio crossed Rs 5,000 crore quarterly EBITDA mark for the first time. The figure jumped 10.20 per cent YoY to Rs 5,166 crore. Net profit of the vertical advanced 11.10 per cent YoY to Rs 990 crore. EBITDA margin jumped 315 basis points to 41.80 per cent . However, average revenue per user (Arpu) fell fell to Rs 120 from Rs 122 , marking a fall for the seventh consecutive quarter. JIO’s Inter User Connect (IUC) charges stood at Rs 652 crore in Q2FY20. “The company is not looking at tariff hikes,” RIL said.
Retail biz crosses Rs 40,000 cr revenue
Revenue from the retail segment crossed the Rs 40,000 crore mark for the first time ever. The figure jumped 27 per cent YoY to Rs 41,202 crore in Q2FY20 over Rs 32,436 crore in Q2FY19. With this, Reliance Retail revenue grew 7 times and Ebitda 10 times in last 14 quarters. EBIT margin increased to 4.90 per cent from 3.80 per cent year on year. “Reliance Retail has emerged the fastest growing retailer globally to cross the $20 billion annual revenue mark,” RIL said. All core retail consumption baskets grew in strong double-digits, RIL said. By the end of the quarter, Jio emerged leader both in terms of subscribers and revenue.
Petchem revenue down, output up
Revenue from petrochemicals operations slipped 11.90 per cent YoY to Rs 38,538 crore during the quarter under review along with a 6.40 per cent fall in EBIT. Margins, however, increased to 19.70 per cent from 18.60 per cent in Q2FY19. The company reported its highest-ever production of petrochemicals at 9.9 million tonnes (mmt) for the quarter against 8.7 mmt and 9.4 mmt reported for Q1FY20 and Q2FY19. The business gained from favourable fuel margins environment.
“Segment EBIT decreased by 6.4 per cent YoY to Rs 7,602 crore, mainly due to weaker petrochemical product margins, which was offset by record petrochemical production and cost optimisation through light-feed cracking,” RIL said. All gasified units safely commissioned and stabilised while R-cluster development work is on track, the company said.
Revenue from R&M segment declined 1.60 per cent YoY to Rs 97,229 crore in Q2FY20. Gross refining margin declined to $9.40 per barrel from $9.50 per barrel YoY. The figure stood at $8.1 a barrel in the previous quarter ended June 2019. The segment EBIT decreased 6.90 per cent YoY to Rs 4,957 crore due to lower GRM and narrow light-heavy crude differentials.
Volume drop hurts oil & gas
Topline from this segment did not contribute much to RIL's top line. The segment revenue declined 40.20 per cent YoY to Rs 790 crore . EBIT margin came in at -38.70 per cent in Q2FY20 over -36.30 per cent in Q2FY19. “The segment performance continued to be impacted by declining volume,” RIL said.
Digital services: Good show
Revenue from digital services jumped 42.70 per cent YoY to Rs 15,619 crore . The segment EBIT jumped 62.70 per cent YoY to Rs 3,322 crore in Q2FY20.
Outstanding debt jumps
The figure jumped to Rs 2,91,982 crore as of September 30 against Rs 2,87,505 crore as of March 31.
Cash and cash equivalent
Cash and cash equivalents grew to Rs 1,34,746 crore on September 30 from Rs 1,33,027 crore on March 31.
The capital expenditure for the quarter stood at Rs 19,095 crore for the quarter ended September 2019.