Reliance Industries posted a consolidated net profit of ₹18,951 crore in the March quarter, down 1.8 per cent on year while revenue rose 11.1 per cent on year to ₹2.4 lakh crore, with double digit growth in its oils-to-chemicals and consumer business.
Higher expenses at ₹2.2 lakh crore, up 11.8 per cent on year and weak downstream margins, dented profitability.
According to the company, EBITDA margin for the quarter rose 50 basis points on year to 17.8 per cent. The company reported an EBITDA of ₹47,150 crore, up 14.3 per cent on year.
For FY24, the company reported a profit after tax of ₹69,621 crore, up from ₹66,702 crore year ago, while revenue (from operations) rose 2.6 per cent to ₹9.14 lakh crore. On a gross basis its revenue crossed ₹10 lakh crore.
The highlight of the year was the annual net profit of Reliance Retail crossing ₹10,000 crore mark and ₹3 lakh crore in revenue while the annual profit of Jio Platforms crossed ₹20,000 crore mark.
The conglomerate ended the year with a net debt of ₹1.2 lakh crore, a decline of ₹9,485 crore from year ago due to moderation in capex post 5G rollout. Capital expenditure in the quarter was ₹23,207 crore and for the full year ₹1.3 lakh crore.
The company announced a dividend of ₹10 per share.
O2C segment shines
Its dominant oils-to-chemicals business reported revenue of ₹1.4 lakh crore, up 10.9 per cent on year, better than expectations due to improved realization for transportation fuels segment and higher volumes.
“Strong demand for fuels globally, and limited flexibility in refining system worldwide, supported margins and profitability of the O2C segment,” said Chairman and Managing Director, Mukesh Ambani.
“Downstream chemical industry experienced increasingly challenging market conditions through the year. Despite headwinds, maintaining leading product positions and feedstock flexibility through our operating model that prioritises cost management, we delivered a resilient performance,” he added.
However, EBITDA margin fell 90 bps to 11.8 per cent on fall in fuel cracks.
For the full year, the O2C revenue was lower by 5 per cent at ₹5.65 lakh crore due to lower product realisation and a decline in Brent crude oil prices.
The oils and gas business reported a 42 per cent rise in revenue on higher volumes from KG D6 block. Revenues from this segment was at ₹6,468 crore in the quarter.
- Also read: Reliance Jio’s Q4 profit up 12 per cent
Jio Platforms
Jio Platforms saw a 12 per cent rise in net profit to ₹5,583 crore in Q4 and revenue rose 13.4 per cent to ₹28,871 crore, with 10.9 million subscribers being added during the quarter, ending the year with 481.8 million subscribers.
Average revenue per user, a key metric in the telecom sector, was flat sequentially at ₹181.7, and was up 1.6 per cent on year. The better subscriber mix was partially offset by increasing mix of promotional 5G traffic that was not charged separately.
EBITDA in the quarter rose 12.5 per cent on year to ₹14,360 crore while EBITDA margin contracted 50 bps to 49.7 per cent.
“Performance of the digital services segment has been boosted by accelerated expansion of subscriber base, supported by both mobility and fixed wireless services,” Ambani said. “With over 108 million True 5G customers, Jio truly leads the 5G transformation in India. From upgrading the hitherto 2G users to smartphones, to leading the effort of producing AI-driven solutions, Jio has proved its capability in strengthening the nation’s digital infrastructure.”
JioAirFiber services have been rolled out across 5,900 cities and towns and is being ramped up for a pan-India coverage.
Increasing traction on 5G and homes will be key focus area in the current year.
Reliance Retail
Revenues of Reliance Retail Ventures rose 9.8 per cent to ₹67,610 crore in Q4, led by growth in consumer electronics, fashion, and lifestyle.
It added 562 new stores in the quarter of 7.8 million square feet, ending the year with 18,836 stores occupying 79 msf. Total footfalls at its stores were 272 million. EBITDA rose 18.5 per cent on year to ₹5,823 crore and margins expanded 60 bps to 8.6 per cent.
For the full year revenue from operations rose to over ₹2.7 lakh crore from ₹2.3 lakh crore year ago and net profit was at over ₹11,000 crore from ₹9,181 crore year ago. The company said it saw strong growth visibility for the Indian gas market, with 10,000 km of new cross-country pipelines under construction.