Results update for results declared on 21st October 2022

Results: Reliance Industries, Bajaj Finserv, and Hindustan Unilever 

Here are some of the key takeaways from the results

Reliance

• Reliance Industries consolidated net profit came in at Rs 13,656 crore for Q2FY23 as against Rs 13,680 crore in Q2FY22 
• Consolidated revenues surged 33.7% to Rs 2.32 lakh crore led by strong performance of the oil-to-chemical, telecom, and retail operations in Q2FY22
• Consolidated revenue of the mainstay oil-to-chemicals business grew over 32% YoY to Rs 1.59 lakh crore in this quarter. This business made up for nearly 69% of RIL’s consolidated revenues in Q2FY23
• Reliance Jio Infocomm, a subsidiary of Reliance Industries‘ digital unit Jio Platforms, reported YoY growth of 28% in its standalone net profit at Rs 4,518 crore for Q2FY23
• The retail business’ revenue grew by nearly 43% YoY to Rs 64,936 crore. The digital services business under the umbrella of Reliance Jio Infocomm registered a revenue growth of more than 21% to Rs 29,558 crore
• The EBITDA for the retail business and Jio Platforms were at a record high in the quarter. Aided by the retail and digital business, the consolidated EBITDA rose 14.5% on year to Rs 34,663 crore.

 

Management Speak

Commenting on the results, Mukesh D Ambani, Chairman and Managing Director, Reliance Industries Limited, said the quarter saw record performance in the company’s consumer businesses, which continue to scale new milestones every quarter. “We saw consistent net subscriber additions and higher engagement in the digital services segment,” he said. “Jio has announced a beta trial for its industry-leading standalone 5G services and is making rapid progress for an ambitious and the fastest ever roll out of True 5G on a pan-India basis.” The retail business delivered record performance with a strong revival in footfalls, store additions and digital integration. 

He further added that “Performance of our O2C business reflects subdued demand and weak margin environment across downstream chemical products. Transportation fuel margins were better than last year but significantly lower sequentially.”

 

Bajaj Finserv

• Net Sales at Rs 20,803.22 crore in Q2FY23, up 15.52% YoY from Rs. 18,008.22 crore in Q2FY22
• Quarterly Net Profit at Rs. 1,556.93 crore in Q2FY23 up 38.75% YoY from Rs. 1,122.13 crore in Q2FY22
• EBITDA stands at Rs. 7,387.73 crore in Q2FY23 up 39.06% from Rs. 5,312.47 crore in Q2FY22
• General insurance. profit after tax stood at Rs 336 crore in Q2FY23 as against  Rs 425 crore in Q2FY22, down 21% on a YoY basis
• Life insurance profit after tax stood at Rs 159 crore in Q2FY23 as against Rs 104 crore in Q2FY22, up 53% on a YoY basis

Management Speak

Quoting the management of Bajaj Finserv in a press release along with the results, “While the economic conditions improved significantly, inflationary pressures remained throughout H1 FY23. The RBI increased repo rate by 190 basis points during H1 FY23. with clear inflation targeting as well as to balance impact of rate increases by central banks across the world. On economy. it had mixed impact as witnessed by increase in automobile sales. improvement in credit growth. but reports of a somewhat sluggish rural economy. The general insurance sector was characterised by intense price competition in the motor segment. while the life insurance sector recorded muted growth of 5% in individual rated new business. In this environment. our companies continued to do well.”

 

Hindustan Unilever Limited

• Revenue from operations for Q2FY23 came in at Rs 14,751 crore, an YoY increase of 16% over Q2FY22
• Net Profit rose to Rs 2,616 crore in Q2FY23, a 20% YoY gain over Rs 2,187 crore in Q2FY22
• EBITDA for the quarter stood at Rs 3,377 crore, growing 8% YoY from Rs 3,132 crore in the same quarter last year.
• In the Home Care vertical, revenue grew 34% YoY to Rs 5,143 crore with volumes growing in double-digits. “Both Fabric Wash and Household Care grew in high double-digits with all parts of the portfolio performing well,” according to the management
• Beauty and Personal Care vertical saw revenue grow by 11% YoY to Rs 5,561 crore driven by outperformance in the premium portfolio. Skin cleansing delivered strong double-digit growth led by Lux, Dove and Pears, said the company in its press release

 

Management Speak

Sanjiv Mehta, CEO and Managing Director commented: “Building on our strong momentum we have delivered yet another quarter of solid all-round performance. In H1 2022-23 we have added an incremental turnover of more than Rs. 4,000 crores. Our consistent performance is reflective of our strategic clarity, strength of our brands, operational excellence, and dynamic financial management. We continue to make excellent progress on our ‘Reimagine HUL’ agenda launching two new digital brands, reaching the milestone of 1 million Shikhar outlets and our manufacturing site at Dapada becoming the first in India to be recognized as Sustainability Lighthouse by the World Economic Forum. We remain confident of the medium to long term potential of Indian FMCG sector and HUL’s ability to deliver a Consistent, Competitive, Profitable and Responsible growth.”