RIL Q2: Impact of windfall profit tax on results, profit at previous levels even if earnings increase
During the quarter, the company’s income has reached a level of Rs 2.32 lakh crore, a growth of 33.7 percent over the previous year.
Effect of windfall tax on profits
Reliance Industries has released its second quarter results today. According to the company, the company’s profit during the quarter has been almost constant as compared to last year. However, there has been a sharp increase in income during this period. Reliance Industries According to the report, the recent tax imposed on windfall profits has had an impact on the company’s earnings from its oil business. However, there has been an increase in earnings due to the better performance of the retail and telecom sectors. The government has imposed tax on sudden profits due to the sharp jump in oil. Which is reviewed from time to time.
How were the quarterly results
The company’s consolidated net profit from oil to telecom sector stood at Rs 13,656 crore in the second quarter of the current financial year. With this, the company had earned a net profit of Rs 13,680 crore in the same quarter of the previous financial year 2021-22. That is, there has been a slight decline in profits in a year. At the same time, there has been a decrease of 24 percent in Reliance’s net profit compared to the previous quarter. At the same time, the company’s income during the quarter has reached a level of Rs 2.32 lakh crore, with a growth of 33.7 percent over the previous year. According to Money Control, these figures of income and profits are less than the market estimates.
The market was anticipating a 12 percent increase in profits and expected profit of more than Rs 15,000 crore. At the same time, a growth of 34 percent was expected in sales. During the quarter, the company’s consolidated operating profit increased by 14.5 percent to about Rs 35 thousand crore. According to the company, during this period a burden of Rs 4 thousand crore has been incurred on them as additional tax.
Financial services business will be a separate list
Along with this, the company announced that it will separate the financial services business and list it in the market. The name of the new company will be Jio Financial Services. At present, the financial services business is under Reliance Strategic Investments. At present, its total business is about Rs 1400 crore, share swap arrangement will be used in the demerger and the shareholders of Reliance Industries will get one share of the new company for every share.
Jio profit up 28 percent
Jio’s net profit grew 28 percent year-on-year to Rs 4,518 crore in the July-September quarter of the current financial year. The telecom company told the stock exchange that its net profit was Rs 3,528 crore in the same period of the last financial year. Income from business grew 20.2 per cent to Rs 22,521 crore in the quarter from Rs 18,735 crore in the year-ago period. According to ET, the company’s earnings and profit figures have been below market expectations.