Result Analysis: Reliance Industries Ltd. Result Update Q3FY22


Particulars (In ₹. Cr) Q3FY22 Q2FY22 Q3FY21 QoQ % YoY%
Revenue From Operation 191271.00 174104.00 137829.00 9.86% 38.77%
Other Income 4047.00 4224.00 4453.00 -4.19% -9.12%
Total Income 195318.00 178328.00 142282.00 9.53% 37.28%
Cost of Material 91315.00 82212.00 53518.00 11.07% 70.62%
Employee Cost as % of Revenue 47.74 47.22 38.83 1.10% 22.95%
Other Expenses 81745.00 76921.00 59904.00 6.27% 36.46%
EBITDA 33886.00 30283.00 26094.00 11.90% 29.86%
EBITDA Margin 17.72% 17.39% 18.93% 1.85% -6.42%
PBT 25227 19234 14982 31.16% 68.38%
EBIT Margin 13.19% 11.05% 10.87% 19.39% 21.34%
PAT 20539.00 15479.00 14894.00 32.69% 37.90%
PAT Margin 10.74% 8.89% 10.81% 20.78% -0.63%
Basic EPS (in Rs. ) 28.08 20.88 20.33 34.48% 38.12%
Segment Revenue Q3FY22 Q2FY22 Q3FY21 QoQ % YoY%
Oil To Chemical 131427.00 120475.00 83838.00 9.09% 56.76%
Oil and Gas 2559.00 1644.00 431.00 55.66% 493.74%
Retail 57717.00 45450.00 37860.00 26.99% 52.45%
Digital Service 25200.00 24362.00 23678.00 3.44% 6.43%
Financial Service 611.00 504.00 649.00 21.23% -5.86%
Others 15482.00 19652.00 10959.00 -21.22% 41.27%
Ratios Q3FY22 Q2FY22 Q3FY21 QoQ % YoY%
Debt Sevice 4.66 2.57 1.21 81.32% 285.12%
Interest Service Coverage 6.87 6.04 4.49 13.74% 53.01%
Debt Equity 0.32 0.34 0.40 -5.88% -20.00%
Current Ratio 1.04 1.18 1.34 -11.86% -22.39%

Result Highlight:

  • For the quarter ended 31st December 2021, RIL achieved gross revenue of ₹ 209,823 crore ($ 28.2 billion), as compared to ₹ 137,829 crore in the corresponding quarter of the previous year. The increase in gross revenue was primarily on account of the following:

Revenue of O2C was driven by higher volumes and improved price realization on the back of 80% Y-o-Y increase in crude oil    prices.

Retail Segment revenues increased sharply with normalcy returning in operating environment. Retail registered its highest ever in-store sales and sustained growth momentum in digital & new commerce.

Revenue of Oil & Gas segment increased multi-fold led by ramp-up of gas production from KG D6 block. Revenue growth was also supported by higher gas price realization in KG D6 and CBM block.

  • Profit after tax increased by 37.9% Y-o-Y at ₹ 20,539 crore as against ₹ 14,894 crore in the corresponding quarter of the previous year.

  • During the quarter, the company divested all its shale gas assets and has exited from the shale gas business in North America. This transaction is reflected in the exceptional gain of ₹ 2,872 crore, accounted during the period. This was partially offset by provisions for liabilities pertaining to GAPCO amounting to ₹ 36 crore

  • Outstanding debt as on December 31, 2021 was ₹ 244,708 crore. Cash and cash equivalents as on December 31, 2021 were at ₹ 241,846 crore.

  • Singapore gasoil 10-ppm cracks averaged $ 12.6 /bbl during 3Q FY22 as against $ 8.1 /bbl in 2QFY22 and $ 4.3 /bbl in 3Q FY21 supported by strong fundamentals and global contraction in gasoil availability.

  • RIL and Abu Dhabi Chemicals Derivatives Company RSC Ltd (“TA’ZIZ”) have agreed to set up ‘TA’ZIZ EDC & PVC’, a world-scale chemical production partnership at the TA’ZIZ Industrial Chemicals Zone in Ruwais and Abu Dhabi Developmental Holding Company PJSC.



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>Gross Revenue for the quarter was ₹ 24,176 crore, higher by 13.8% Y-o-Y.

  • Quarterly operating revenue was ₹20,597 crore, growth of 13.8% Y-o-Y, driven by higher ARPUs and increasing revenues from new services.

  • EBITDA at ₹ 10,008 crore, higher by 18.0% Y-o-Y, with this quarterly EBITDA has crossed ₹ 10,000 crore for the first time.

  • ARPU during the quarter was at ₹ 151.6 per subscriber per month which saw 8.4% growth on Y-o-Y.



Reliance Retail:

  • Reliance Retail recorded Consolidated Gross Revenue of ₹ 57,714 crore for 3Q FY22, a growth of 52.5% Y-o-Y. Gross Revenue from consumption baskets excluding Petro and Connectivity grew by 90% over previous year to ₹ 33,714 crore for 3Q FY22.

  • The business posted a record EBITDA of ₹ 3,822 crore, up 23.8% Y-o-Y. EBITDA from operations grew by 52.3% Y-o-Y

  • Net Profit for the quarter was ₹ 2,259 crore higher by 23.4% Y-o-Y.


Consumer Electronics and Fashion & Lifestyle:

  • Consumer Electronics stores posted strong double-digit growth with improvement across all operating parameters.

  • Digital commerce delivered robust performance on the back of attractive offers and wider assortment of products. More than 50% of the shoppers were from Tier 2 & below cities.



Reliance Q3FY22 result was better than the street expectation, it was supported by exceptional gain, Revenue grew 38%, which was supported by all the segment, retail saw 52% growth PAT came in at ₹ 20539 crore which was supported by exceptional gain of ₹2900 crore , EBITDA margin was flat compared to last year at 17.72%. Company recorded quarterly revenue for digital services at ₹ 25,200 Crore, up 6.4% Y-O-Y, EBITDA for Digital services crossed at ₹ 10,000 crore mark for the first time. Reliance Jio net profit increased 8.9% and ARPU for this quarter came in at ₹ 151.6.At the CMP of ₹2477, Reliance is trading at PE multiple of 28x. Valuing the company at 28.5x FY23E EPS, we recommend buy on Reliance at CMP of for the Target Price of ₹2920.

Source: BSE, Bloomberg Quint, EW Research

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