Reliance Industries Posts 11.5% Revenue Growth Amid Diverse Portfolio Resilience

Reliance Industries Limited reported 11.5% year-on-year revenue growth for the April-June 2024 quarter, driven by higher oil prices and increased volumes in its oil and gas segment. However, net profit fell by 4%. The company also saw significant progress in its consumer businesses and new energy initiatives.

Reliance Industries Limited (RIL) announced on Friday a consolidated revenue growth of 11.5% year-on-year for the April-June 2024 quarter, totaling Rs 257,823 crore. This is up from Rs 231,132 crore recorded in the same quarter last year. This growth can be attributed to elevated oil and product prices, as well as robust performance in the oil and gas segment driven by higher volumes. Additionally, steady growth in consumer businesses also contributed to the revenue increase.

Conversely, the firm's consolidated net profit, or profit after tax, saw a 4% decline year-on-year, falling to Rs 17,448 crore from Rs 18,182 crore in the comparable quarter in 2023. Despite this, Reliance's overall EBITDA rose by 2% year-on-year, reaching Rs 42,748 crore.

In a statement, the company highlighted that its O2C EBITDA had decreased by 14.3% due to lower gasoline cracks (-30%) and reduced downstream chemical deltas, notably PE (-17%), PP (-16%), and integrated polyester margin (-15%). Capital expenditure for the quarter was Rs 28,785 crore.

Mukesh D. Ambani, Chairman and Managing Director, emphasized the resilience of Reliance's diverse business portfolio, noting their significant contributions to India's economic growth and digital transformation. He praised Jio's role in accelerating the digital revolution and its competitive edge in providing affordable, high-quality network services globally.

The retail business also reported strong financial results supported by various consumption categories. Ambani highlighted progress in New Energy Giga factories, which upon completion, would offer a world-class, integrated green energy ecosystem, driving sustainable growth.

Jio Platforms reported a 12.8% rise in revenue from operations to Rs 29,449 crore for the quarter, with net profit up 11.7% to Rs 5,698 crore. Jio's subscriber base reached 490 million, including 130 million 5G users, making it the largest 5G operator outside China. Jio recorded a 33% year-on-year increase in data traffic, with 5G accounting for over 31% of its wireless data traffic. Per capita data consumption hit 30.3 GB per month.

JioAirFiber achieved a record 1.1 million net additions in home connections for the quarter. The average revenue per user (ARPU) was Rs 181.7, bolstered by a better subscriber mix, albeit partially offset by free promotional 5G traffic.

Akash M Ambani, Chairman of Reliance Jio Infocomm, reiterated the company's commitment to affordable, high-quality internet, which is essential for Digital India. He highlighted that their new plans would drive 5G and AI innovations while maintaining Jio's market leadership with a customer-first approach.

In the retail segment, Reliance Retail's gross revenue for the quarter grew 8.1% year-on-year to Rs 75,615 crore. The company expanded its store network with 331 new openings, bringing the total to 18,918. The quarter saw footfalls of over 296 million, up 18.9% from last year. The customer base grew to 316 million, making it one of India's leading retailers, with 334 million transactions recorded.

Finally, the O2C segment recorded revenue growth of 18.1% year-on-year to Rs 157,133 crore, driven by higher product prices and increased volumes amid strong domestic demand.

(With inputs from agencies.)