Retail, telecom and other new businesses begin to shine for RIL
The Morning Standard|October 24, 2021
O2C accounts for 63% of its total income in Q2, new businesses coming up on their own
ARSHAD KHAN
Retail, telecom and other new businesses begin to shine for RIL


THOUGH its legacy business — oil-to-chemical (O2C) operations — continues to rake in big moolah for Reliance Industries, it has made rapid progress in expanding its new age businesses.

The O2C segment accounted for 63% of the group’s total income in second quarter, and revenue from this business increased by a whopping 58.1% Y-o-Y to ₹120,475 crore during the quarter. However, Reliance’s new businesses are slowly but surely coming up on their own.

The other Reliance vertical that witnessed surge in profit and revenue during the quarter was its fast-growing retail empire. Reliance Retail’s gross revenue during the quarter was recorded at ₹45,426 crore, a growth of 10.5% Y-o-Y and higher than Pre-Covid period. Net Profit for this segment during the quarter came in at ₹1,695 crore, higher by 74.2%. This growth in topline and bottom-line came even as footfalls in the quarter only recovered to 78% of pre-Covid levels. The company reported adding 813 new stores in the quarter, showing confident in future growth prospect. Additionally, its digital and new commerce platform grew 2.4x Y-o-Y.

On the other hand, Reliance Jio’s performance was a bit underwhelming. Even as the platform’s net profit rose 23.4% to ₹3,728 crore in (Q2FY22) and its ARPU (average revenue per user) improved 3.7% to ₹143.6 per subscriber per month, on a year-on-year basis, it lost 11.1 million customers during this quarter on a sequential basis.

This is the first time that the company has reported a sharp sequential drop in customer base. The country’s largest telecom operator has blamed “Covid-19 impact” for this loss. At the end of Q2, Jio’s subscriber base stood at 429.5 million.

This story is from the October 24, 2021 edition of The Morning Standard.

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This story is from the October 24, 2021 edition of The Morning Standard.

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