Reliance Industries Q2 Net Profit Rises 9.4% On-quarter To Rs 16,563 Crore, Helped By Jio ARPU, Beats Analysts' Estimates

Reliance Industries Ltd’s fiscal second-quarter net profit rose to Rs 16,563 crore, up 9.4 percent from the preceding quarter.

Revenue from operations for India’s most valuable company stood at Rs 2.35 lakh crore in the quarter ended September 30, compared with Rs 2.36 lakh crore a quarter ago.

A Moneycontrol poll of seven brokerages estimated Reliance Industries fiscal second-quarter revenue to fall marginally to Rs 2.31 lakh crore from the preceding three months. Net profit was expected to fall 12 percent to Rs 15,354 crore.

“Our performance reflects robust growth in Digital Services and Upstream business. This helped partially offset weak contribution from O2C business which was impacted by unfavourable global demand-supply dynamics,” said chairman and managing director Mukesh Ambani.

Reliance Jio said the telecom operator’s monthly ARPU (average revenue per user) grew by a strong 7.4 percent year-on-year to Rs 195.1. The company said that the full impact of the tariff hike will flow through in the next 2-3 quarters. Further, Jio strengthened its leadership in 5G with 148 million subscribers upgrading to the faster service. This segment contributes 34 percent of wireless data traffic for Reliance Jio.

Jio Platforms, which houses RIL’s all digital services businesses, reported a record quarterly profit of Rs 6,536 crore, said the firm. “Growth in Digital Services was led by increased ARPU and improving customer engagement metrics reflecting the strong value proposition of our services,” said Ambani.

Reliance Retail Ventures reported a profit after tax of Rs 2,935 crore for the September quarter, up almost 20 percent from a quarter ago. The retail unit’s revenue from operations rose to Rs 66,502 crore from Rs 66,260 crore in the preceding three months.

“The retail segment continues to increase its consumer touchpoints and product offerings across physical and digital channels. The unique omni-channel retail model enables the business to service a wide range of requirements of a vast, heterogenous customer base,” said Ambani in the statement.

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