 "Reliance Industries, RIL")
Mukesh Ambani-promoted Reliance Industries Limited (RIL) on Friday reported a 27.4 per cent year-on-year (Y-o-Y) rise in its consolidated net profit for the September quarter (Q2FY24).
While revenue growth of the company was flattish Y-o-Y, the profit rose on the back of operational improvement across most segments, especially higher profits in the O2C (oil-to-chemicals) and oil & gas businesses, as well as the retail business.
For Q2FY24, RIL’s consolidated net profit came in at Rs 17,394 crore. Sequentially, it was up 8.6 per cent. According to Capitaline data, Q2 consolidated net sales and PBIDT (profit before interest, depreciation and taxation) were the highest ever for RIL in a quarter.
“Strong operational and financial contribution from all business segments has helped Reliance deliver another quarter of robust growth,” said Mukesh Ambani, chairman and managing director of
“Strong operational and financial contribution from all business segments has helped Reliance deliver another quarter of robust growth,” said Mukesh Ambani, chairman and managing director of
the company.
Reflecting the fall in crude oil prices, revenue from operations for the quarter under review was almost flat at Rs 2.32 trillion, compared to Rs 2.29 trillion a year ago.
Segment-wise, the company said, the oil and gas business reported its all-time high Ebitda (earnings before interest, taxes, depreciation, and amortisation) in the September 2023 quarter.
RIL said revenue from the O2C business declined, with a 14 per cent Y-o-Y decrease in crude oil prices leading to lower price realisation for products; revenue from the consumer and oil & gas businesses showed positive growth. “Gross revenue was supported by continuing growth momentum in the consumer business,” the company said in its statement. RIL’s other income for the quarter under review was at Rs 3,841 crore, up 10.5 per cent from a year ago.
RIL’s Ebitda for the quarter was at Rs 44,867 crore, up 30.2 per cent Y-o-Y -- a record number.
Reported profit after tax (PAT) for the company was at Rs 19,878 crore, up 29.7 per cent in a year.
In a Bloomberg poll, six analysts estimated adjusted net income (net profit) at Rs 17,850 crore and 13 analysts expected the company’s revenue around Rs 2.234 trillion.
Revenue from the O2C business fell 7.3 per cent Y-o-Y to Rs 1.47 trillion and Ebitda for the segment, the company said, rose 36.0 per cent to Rs 16,281 crore Y-o-Y. Exports from this segment also fell 2.9 per cent in a year to Rs 83,834 crore. “While downstream chemical deltas were impacted by subdued global demand, domestic market demand for oil, polymer and polyester was up. O2C Ebitda improved with strong gasoline cracks and PVC delta recovery,” said Srikanth Venkatachari, chief financial officer of the company in a press briefing after the results.
RIL’s oil and gas segment revenue was up 71.8 per cent Y-o-Y at Rs 6,620 crore, which the company attributed to higher production of gas & oil, and the commencement of condensate production from MJ field, along with 6 per cent higher gas price realisation in KG D6.
Ebitda for the oil and gas segment were also up 50.3 per cent at Rs 4,766 crore. On its KG UDW1 block, the company said the first exploration well is planned to be drilled in the second half of the current financial year.
Reliance Retail saw its net profit increase 21.0 per cent Y-o-Y rise to Rs 2,790 crore. Retail’s revenue from operations for the quarter stood at Rs 68,937 crore, up 19.5 per cent, led by well-rounded growth across consumption baskets.
Jio Platforms registered a net profit of Rs 5,297 crore, up 12 per cent over the past year. Revenue from operations for this segment was up 10.7 per cent YoY at Rs 26,897 crore. For the quarter under review, RIL said, it spent Rs 38,815 crore as capital expenditure, largely related to the pan-Indian 5G rollout. The company said capex intensity would reduce going forward with the completion of the 5G rollout.
As of September 2023, consolidated outstanding debt for the company was Rs 2.95 trillion, with finance costs up 25.8 per cent Rs 5,731 crore, which the company said was primarily due to higher interest rates and currency depreciation.
Net debt, the company said, was at Rs 1.17 trillion. This was lower following the capital raise of Rs 10,347 crore in Reliance Retail from QIA and KKR in the quarter gone by. The company added that there was a further capital raise of Rs 4,967 crore in Reliance Retail from ADIA in October.
RIL declared its financial results after market hours, following a board meeting that included the third generation of the Ambani family – siblings Isha, Akash and Anant. In Friday’s trade, RIL’s shares closed at Rs 2265.25 apiece, up 1.75 per cent from the previous day’s close.
