Reliance Industries, led by billionaire Mukesh Ambani, has reported a significant jump in net profit for the quarter ended September 30th. The company saw a 27% year-on-year increase in net profit, reaching ₹17,394 crore, while revenues rose 1% to ₹2.32 lakh crore. This performance surpassed expectations and was driven by strong performance across all three business segments.
The star of the quarter was Reliance Retail, which saw a sharp rise in revenues and income. The retail business reported an 18.8% year-on-year growth in revenues, reaching ₹77,148 crore. The operating margin of Reliance Retail also improved by 80 basis points to 8.4%. The food and grocery segment of the retail business saw remarkable growth, with revenues increasing by 33%.
Reliance Jio, another business segment of Reliance Industries, reported a 10.6% increase in revenues, reaching ₹31,537 crore. This growth was attributed to a 7.5% increase in the subscriber base and higher average revenue per user. The EBITDA of Jio grew by 12.6% year-on-year to ₹13,528 crore.
The O2C segment, which has faced challenges in recent quarters, showed signs of recovery. The profitability of the segment was driven by better gas price realization and a 66% growth in KGD6 gas volumes. However, revenues from the O2C segment declined due to lower price realization for products, caused by a 14% decrease in crude oil prices.
Mukesh D Ambani, Chairman and Managing Director of RIL, commented on the company’s performance, stating that strong operational and financial contributions from all business segments have led to robust growth. Reliance Retail continues to expand its presence both offline and online, with impressive product offerings. Despite energy market volatility, the O2C segment displayed resilience, fueled by strong growth in fuel demand.
Although Reliance Industries’ shares have declined by 14% this year due to weak performance in the O2C segment, its consumer businesses have been contributing significantly to total revenues. In FY23, the company’s consolidated revenues reached ₹9,74,864 crore, with an operating income of ₹1,53,920 crore and a net profit of ₹73,670 crore.
During the quarter ended June, Reliance Industries reported consolidated revenue of ₹2.31 lakh crore, representing a decline of 4.7% compared to the same period last year. This was primarily due to underperformance in the O2C business. However, the strong growth in the consumer business helped offset this decline. The company’s EBITDA for Q1FY24 stood at ₹41,982 crore, showing an increase of 1.8% compared to the previous quarter and 5.1% compared to the same period last year.
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