Reliance Industries (RIL), India's largest company by market capitalization and diversified conglomerate operating in various sectors, including energy, petrochemicals, retail, and telecommunications reported 29.7% YoY rise in its September quarter consolidated net profit at Rs. 19,878 crore. Mukesh D. Ambani, Chairman and Managing Director of Reliance Industries Limited, said that strong operational and financial contributions from all business segments have helped Reliance deliver another quarter of robust growth. EBITDA also saw a healthy 32.2% YoY rise to Rs. 44,867 crore, while the EBITDA margin jumped 390 bps YoY to 17.5%. Gross revenue, however, inched up marginally by 1.2% YoY to Rs. 2,55,996 crore, supported by consumer businesses.
Key highlights from Reliance Industries' Q2FY24 earnings include:
- Jio Platforms: Jio has emerged as the #1 Network in India, winning all nine awards for Mobile Networks in the market, including all awards for 5G networks. Consolidated Revenue and EBITDA of Jio Platforms increased due to strong subscriber growth in mobility and wireline services and scale-up of the in digital service platforms. Jio’s customer base ended the quarter at 459.8 mn subscribers. It was a addition of 11.1 mn subscribers. ARPU for the quarter came in at ₹181.7. Data consumption and voice consumption remain healthy. Revenue from operations for the segment rose 10.7% YoY to Rs. 26,875 crore in Q2FY24, while net profit saw a 12% YoY growth to Rs. 5,297 crore. EBITDA during the quarter rose 12.6% YoY to Rs. 13,528 crore and EBITDA margin moved up by 80 bps YoY to 50.3 per cent.
- Reliance Retail Ventures: Company remained focused on launching new formats and during the quarter, they launched new youth-focused format called Yousta. During the quarter, company completed acquisition of majority stake in kids wear brand, Ed-a-Mamma as well as completed acquisition of a controlling stake in Superdry IP for India, Sri Lanka and Bangladesh territory. Retail segment continue to invest in expanding store network as they opened 471 new stores during the quarter bringing total retail area at 71.5 mn. Revenue from operations for the segment rose 19.5% YoY to Rs. 68,937 crore, while net profit jumped 21% YoY to Rs. 2,790 crore in Q2FY24. EBITDA saw a 32.2% YoY growth to Rs. 5,820 crore and the EBITDA margin rose 80 bps YoY to 8.4%.
- Oil-to-chemicals (O2C) segment: Revenue declined by 7.3% YoY to Rs. 1,47,988 crore mainly due to a 14% reduction in crude oil prices, resulting in lower price realisation for products. However, the segment's EBITDA grew by 36 per cent YoY to Rs. 16,281 crore while the EBITDA margin moved up by 350 bps to 11 per cent. Strong EBITDA growth supported by firm gasoline, PVC margins, optimised feedstock sourcing, higher volumes.
- Oil and gas: The company had pretty robust quarter on the back of KGD6 gas and condensate production. The segment's revenue rose 71.8 per cent YoY to Rs. 6,620 crore mainly on account of higher production of gas and oil and the commencement of condensate production from the MJ field along with 6% higher gas price realisation in KG D6. EBITDA increased 53.3% YoY to Rs. 4,766 crore but EBITDA margin declined by 1,030 bps to 72 per cent.
- Media Business: Revenue from operations for the segment grew 20.4% YoY to Rs. 1,865 crore but the segment saw a loss of Rs. 111 crore during the quarter. In Q2FY23, the segment's loss was Rs. 29 crore while in Q1FY24, the segment earned a profit of Rs. 29 crore. EBITDA for the segment fell 186.1 per cent YoY while the EBITDA margin contracted by 400 bps in Q2FY24. Viacom18 continued to strengthen its sports portfolio with the acquisition of exclusive media rights for BCCI international and domestic cricket matches for five years and the Indian Super League for two years.
In a disclosure filed with the exchange, company informed that Ms. Isha M. Ambani, Shri Akash M. Ambani and Shri Anant M. Ambani have assumed office as Non-executive Directors of the Company by an overwhelming majority i.e. October 27, 2023. The appointment was approved by more than 90% of the company's shareholders, despite the advice of two proxy advisory firms, Institutional Investor Advisory Services India Ltd (IiAS) and Institutional Shareholder Services (ISS).
Stock made gap up opening following result news and at time of reporting is up 2.29%.