Mukesh D. Ambani: The digital services business registered an impressive financial performance year-on-year, continuing its positive growth momentum
FinTech BizNews Service
Mumbai, July 19, 2024: Reliance Industries Ltd today reported a consolidated revenues at Rs257,823 crore ($30.9 billion), up 11.5% Y-o-Y for the Q1 FY25.
RIL Q1 FY25 Results Highlights
Consolidated
• Reliance posted consolidated revenues at Rs257,823 crore ($30.9 billion), up 11.5% Y-o-Y, led by higher oil prices and volumes in O2C and Oil & Gas segments with steady growth in consumer businesses
• Reliance’s consolidated EBITDA increased by 2.0% Y-o-Y to Rs 42,748 crore ($5.1 billion). Strong contribution from oil & gas and consumer business offset weak O2C
• Reliance’s consolidated Profit after tax decreased 4.0% Y-o-Y to Rs17,448 crore ($2.1 billion), largely due to higher depreciation
• Capital Expenditure for the quarter ended June 30, 2024, was Rs28,785 crore ($3.5 billion)
• RIL’s consolidated Net Debt as of 30th June 2024 was marginally lower at Rs112,341 crore as against Rs116,281 crore as of 31st March 2024. Net debt to EBITDA ratio improved to 0.66, from 0.76 a year ago.
Commenting on the results, Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries Limited said: “Consolidated EBITDA for the quarter improved from a year ago with strong contribution from Consumer and Upstream businesses offsetting weak O2C operating environment. Reliance’s resilient operating and financial performance in this quarter underscores the strength of its diverse portfolio of businesses. Importantly, these businesses are contributing significantly to India’s growth, providing vital energy and vibrant channels for digital and physical distribution of goods and services. The digital services business registered an impressive financial performance year-on-year, continuing its positive growth momentum. Jio’s True 5G network, covering 85% of India’s 5G capacity, continues to attract users, while the fixed broadband offerings are witnessing increasing consumer traction both in homes and enterprises. The attractive value proposition offered by Jio is enabling more Indians to transition to next-gen data networks. This is further accelerating the digital revolution which is reshaping communications, analytics and computing, media and entertainment and commerce in India. Jio is committed to provide the best-quality state-of-the-art network at most affordable prices globally. Retail business delivered robust financial results, as compared to last year, well supported by all consumption baskets. With fast-paced expansion of its retail footprint, Reliance Retail continues to cement its position as the preferred retailer for millions of Indians. The digital and new commerce segments are also scaling up rapidly. Reliance Retail is focused not only on providing quality products to customers, but also on enhancing overall customer experience, both during and after sales. The deep integration and flexibility built into our O2C business model helped mitigate the impact of challenging operating environment. The business was impacted by lower fuel cracks with tepid global demand and ramp-up of new refineries. The oil and gas segment continued its growth trajectory with higher production, offsetting lower year-on-year gas price realizations. Reliance has made significant progress on the implementation of New Energy Giga-factories. On completion, these projects will provide India a world-class, integrated green energy ecosystem which can propel the next leg of sustainable growth.”
Jio Platforms
• Jio Platforms’ EBIDTA for quarter ended June 2024 increased by 11.6% Y-o-Y to Rs14,638 crore
• Jio’s net profit for the quarter grew 11.7% Y-o-Y to Rs5,698 crore
Reliance Retail
• Reliance Retail’s Gross Revenue for the June 2024 quarter grew 8.1% Y-o-Y to Rs75,615 crore
O2C
• Reliance’s O2C Segment Revenue for the quarter increased by 18.1% Y-o-Y to Rs157,133 crore ($18.8 billion) primarily on account of higher product prices tracking ~9% increase in Brent crude oil prices, and higher volumes supported by strong domestic demand.
• Reliance’s O2C Segment EBITDA for 1Q FY25 was lower by 14.3% Y-o-Y at Rs13,093 crore ($1.6 billion) due to lower transportation fuel cracks, particularly gasoline cracks which was down 30% Y-o-Y. Downstream chemical margins were also lower 15%-17% on Y-o-Y basis.
