Bond Market News

Reliance Industries Ltd (RIL) reported a consolidated net profit of INR 194.4bn ($2.4bn), 40.8% higher YoY for the quarter ended June. The company cited strong Oil to Chemical (O2C) earnings with firm demand and extraordinary dislocation in energy markets causing supply constraints. Gross revenues were at INR 2.4tn ($30.8bn), higher by 53% YoY, led by Oil to Chemical (O2C) and Retail businesses. EBITDA increased by 45.8% YoY to INR 401.8bn ($5.1bn) from INR 275.5bn ($3.4bn) on strong contribution from the O2C business, along with strong performances from other businesses lines. During the quarter, revenues from its telecom arm Jio Platforms Ltd (JPL) rose 23.6% YoY to INR 275.3bn ($3.5bn) and profit grew by 24.1% YoY to INR 45.3bn ($574mn). Jio’s average revenue per user (ARPU) came in at INR 175.7 ($2.2) per subscriber per month, rising 26.9% annually. As of June 2022, Jio had a total customer base of 419.9mn, and total data traffic was 25.9bn GB, a 27.2% increase YoY. RIL’s net debt stood at INR 576.5bn ($7.2bn), increasing 65% QoQ on account of higher working capital requirements in businesses with an increase in energy and product prices. An increase in interest rates and currency depreciation have driven finance costs up by 17.7% to INR 40bn ($506mn). RIL has a capex of $4bn for the quarter, funded by internal cash generation.

RIL’s dollar bonds were trading higher, its 3.625% 2052 up over 1.4 points to 74.76 yielding 5.33%.

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