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Reliance Industries’ consolidated net profit rose 9.3 per cent and revenue grew by a mere 3.5 per cent in the October-December quarter, weighed down by higher expenses and its oils-to-chemicals business.
The conglomerate reported a net profit of ₹17,265 crore, while its revenue was at ₹2.28-lakh crore in Q3 FY24.
Also read: ‘RIL to be among the top 10 global business conglomerates’
Revenue from its O2C segment was at ₹1.4-lakh crore. According to the company, the lower revenue was due to planned maintenance shutdowns at some of its units in Jamnagar in the quarter under review. One crude distillation unit and delayed coking in SEZ refinery was shut for four weeks in the fourth week of September. A fluidised catalytic cracker was shut for seven weeks starting from mid-September and refinery off gas cracker was shut for four weeks in the same month.
The revenue from Reliance Retail, accounting for a third of RIL’s income grew to ₹74,373 crore and reported a net profit of ₹3165 crore, up 32 per cent year-on-year.
Jio Platforms, which houses all its digital properties, reported a net profit of ₹5445 crore, up 2.8 per cent sequentially, while revenue rose 3 per cent to ₹27,697 crore. EBITDA rose 3.5 per cent to Rs 13,995 crore and the EBITDA margin was flat at 50.4 per cent.
On Q3 FY24 results, RIL Chairman and Managing Director Mukesh Ambani said the company has delivered another quarter of robust operating and financial performance.
He further said the new energy giga complex will be commissioned in the second half of 2024.
“I am confident that Reliance’s New Energy business will play a pivotal role in the global movement for adoption of cleaner fuels,” he said.
The consolidated EBITDA was at ₹44,678 crore, up 16.7 per cent y-o-y, per the company. The EBITDA margin in the quarter was 18 per cent, a rise of 210 basis points. The EBITDA was led by higher contribution of Jio Platforms and Reliance Retail.
The company spent Rs 30,102 crore in the quarter with investments in pan-India 5G roll-out, expansion of retail infrastructure and new energy business. Its consolidated debt at the end of the quarter was at Rs 1.2 lakh crore.
O2C
Revenue in this segment declined 2.4 per cent due to shutdowns and lower price realisation led by a 5.3 per cent decline in average Brent crude oil prices.
The company said there was sustained performance in the segment with higher gasoline cracks and feedstock sourcing. This was partially offset by lower downstream chemical margins.
Revenue from the oil and gas segment rose on higher volumes that was offst by lower gas price realisation from the KG D6 field. The EBITDA in this segment rose by nearly 50 per cent to Rs 5804 crore.
Retail
The growth in the retail operations was led by grocery, fashion and lifestyle and consumer electronics.
During the quarter it added 252 new stores taking the total to 18,774, while footfalls in all its stores crossed 282 million with the festive season pushing sales. EBITDA margin for Reliance Retail Ventures improved by 50 bps to 8.4% due to operating leverage and focus on cost management. Quarterly EBITDA was up 31 per cent at Rs 6,258 crore.
The total area under operation increased by over a fifth to 73 million square feet.
Digital commerce and new commerce contributed 19 per cent to revenue. During the quarter it launched Swadesh, AjioGram and acquired Sephora India’s franchise business.
The grocery segment rose 41 per cent, JioMart saw a steady increase in traffic, while the consumer brands trebled in revenue and distribution.
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