RIL profit up 27% driven by growth in telecom, retail segments

Reliance Industries (RIL) beat market estimates, reporting a 27 per cent increase in consolidated net profit at ₹17,394 crore during the second quarter ended September 30, 2023, compared to ₹13,656 crore in the corresponding period last year. The growth was largely led by telecom, retail, and a rebound in the oil and gas business.

• Also read: Reliance Jio Q2 net profit rises 12%

However, RIL’s total revenue from operations was almost flat at ₹2.34 lakh crore compared to ₹2.32 lakh crore in the same period last year.

Mukesh D Ambani, Chairman and Managing Director, Reliance Industries Ltd., said, “Strong operational and financial contribution from all business segments has helped Reliance deliver another quarter of robust growth.”

Revenue for oil-to-chemicals (O2C) conglomorate reduced by 7.3 per cent y-o-y to ₹147,988 crore, primarily on account of a sharp 14 per cent reduction in crude oil prices, resulting in lower price realisation for products.

Downstream contribution remained weak with lower polyethylene, polypropylene, and polyester chain deltas. Crude oil benchmarks declined y-o-y due to macro-economic headwinds on high interest rates, lower industrial activities, and sentiments shifting from risk premiums to fundamentals.

• Also read: Reliance Industries nears deal to buy Disney’s India biz

“The resilient performance of the O2C segment despite volatility in energy markets was led by strong growth in fuel demand in a supply-constrained market. Weak global demand and supply-overhang continued to impact downstream margins,” Ambani added.

Reliance Retail reported 18.8 per cent revenue growth in the second quarter ended September 30, 2023, led by all-round growth across consumption baskets. Grocery, fashion, and lifestyle businesses maintained strong growth momentum, while consumer electronics had a steady performance despite the festival period falling in the third quarter of FY24. The business expanded its store network with 471 new store openings, taking the total store count at the end of the quarter to 18,650 with an area of 71.5 million sq ft.

“Reliance Retail has continued to rapidly expand its offline as well as online presence while adding to its already impressive range of products and offerings. We are providing a fresh and friendly shopping experience across our seamless ecosystem. The strength and diversity of our retail business model are consistently delivering robust performance,” Ambani said.

Reliance Jio reported a 12 per cent increase in net profit in the second quarter of the current fiscal. Profits rose to ₹5,058 crore (₹4,518 crore in Q2 FY23). Revenue from operations rose 9.9 per cent to ₹24,750 crore (₹22,521 crore).

EBITDA margins at 50.3 per cent increased 80 bps year on year. EBITDA for the operator was ₹ 13,528 crore, up 12.6 per cent y-o-y. ARPU increased 2.5 per cent year on year to ₹181.7, driven by a better subscriber mix across mobility and wireline, according to the operator. Jio also added over 3 exabytes of data traffic for the second successive quarter in 2Q FY24. Total data and voice traffic increased by 28.5 per cent and 8.3 per cent y-o-y respectively.

Q2 Score card (In ₹crore)

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