Reliance Industries Ltd, led by Mukesh Ambani, reported a robust 27% surge in consolidated net profit, totalling ₹17,394 crores, for the quarter ending September 30, 2023. This remarkable growth was fueled by the strength of its core oil-to-chemicals (O2C) business. In the corresponding period of the previous year, the company had reported a consolidated net profit of ₹13,656 crores. However, the company experienced reduced profit margins due to a drop in refined fuel prices.
All About the Reliance Industries Earnings
The conglomerate’s consolidated revenue witnessed a modest 1% increase, reaching ₹2.34 lakh crores in Q2FY24, as compared to ₹2.32 lakh crores in Q2FY23. Furthermore, on Friday, RIL’s shares on the BSE closed 1.8% higher at ₹2,266.15.
Mukesh Ambani, the Chairman of RIL, attributed the resilient performance of the O2C segment to the robust growth in fuel demand within a market constrained by supply. He acknowledged that weak global demand and supply oversupply continued to impact downstream profit margins. Ambani also highlighted the noteworthy growth in the oil and gas business, particularly the production from the KGD6 block, which is playing a crucial role in India’s energy transition.
In the same period, RIL’s quarterly EBITDA reached ₹44,867 crores, marking a substantial 30% annual increase. The company’s net debt decreased to ₹2.95 lakh crores in Q2FY24, compared to ₹3.18 lakh crores in Q1FY24. RIL had cash and cash equivalents totalling ₹1.77 lakh crores in Q2FY24, which included a capital raise of ₹10,347 crores in Reliance Retail.
RIL stated that its capital expenditure for the quarter ending September 30, 2023, was ₹38,815 crores, with ongoing accelerated investments in the nationwide rollout of 5G.
Reliance Jio Infocomm, the telecommunications division of Reliance Industries, reported a modest 4% sequential increase in net profit, reaching ₹5,058 crores in the July-September quarter, primarily due to higher expenses and the absence of tariff increases. Meanwhile, revenue increased by 3%, reaching ₹24,750 crores in Q2FY24, with an average revenue per user (ARPU) of ₹181.7.
Akash Ambani, Chairman of Reliance Jio Infocomm, announced that “Jio True5G” would soon be available nationwide, marking a new digital era for India. Additionally, the strong interest in “JioAirFiber” is set to transform the country’s broadband infrastructure by offering a fibre-like digital experience to homes and small businesses. Ambani identified “Ubiquitous 5G,” “JioBharat,” and “JioAirFiber” as significant growth drivers for Jio, expected to boost market share and profitability.
Reliance Retail, on the other hand, reported a notable 21% increase in net profit, reaching ₹2,790 crores in Q2FY24, compared to ₹2,305 crores in the same period the previous year. The company’s revenue from operations also increased by 19.5%, reaching ₹68,937 crores in Q2FY24, compared to ₹57,694 crores in Q2FY23.
Isha Ambani, Executive Director of Reliance Retail Ventures Limited, expressed her delight in delivering another quarter of stellar performance, achieving all-time highs across various financial metrics. She emphasized the customer-centric approach of Reliance Retail and looked forward to serving customers during the upcoming festive season with renewed optimism and enthusiasm.
Mukesh Ambani stated that Reliance Retail has been rapidly expanding its presence, both offline and online, while consistently diversifying its product range and offerings. He highlighted the company’s commitment to delivering a fresh and customer-friendly shopping experience across its seamless ecosystem and emphasized that the strength and diversity of the retail business model continue to deliver strong performance.