Reliance Industries on Friday disclosed a 4 per cent year-on-year (YoY) decline in the June quarter’s (Q1 FY25) consolidated net profit, even as its revenue moved up 11.5 per cent YoY.
Strong contributions from the consumer and upstream sectors have helped the company’s consolidated EBITDA for the reviewed quarter rise, more than compensating for the O2C (oil-to-chemicals) segments’ subpar performance.
“Consolidated EBITDA for the quarter improved from a year ago with strong contribution from Consumer and Upstream businesses offsetting weak O2C operating environment,” said Mukesh Ambani, Chairman and Managing Director, Reliance Industries.
“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,” he added.
In comparison to Rs 18,182 crore in the same quarter last year, the company’s Q1 consolidated profit after tax (PAT) has dropped 4per cent YoY to Rs 17,448 crore.
Consolidated revenue for the business increased 11.5 per cent YoY to Rs 2,57,823 crore from Rs 2,31,132 crore in the same quarter last year. The oil and gas and consumer businesses have helped mitigate the negative O2C, as EBITDA for the reviewed quarter increased by 2per cent YoY to Rs 42,748 crore.
Jio Platforms, the company’s telecom division, had rapid growth in the quarter that was under evaluation. Operating leverage and robust revenue growth drove the segment’s EBITDA to soar 11.6 per cent YoY to Rs 14,638 crore.
Due to strong subscriber growth in both families and mobility, Jio’s revenue for the quarter increased 12.8 per cent YoY to Rs 34,548 crore. The segment’s PAT has increased 11.7 per cent YoY to Rs 5,698 crore.
Average revenue per user, or ARPU, a crucial metric for telecom carriers, was nearly unchanged (up 0.7 per cent YoY) at Rs 181.7 despite a better subscriber mix. This was somewhat offset by the increased amount of promotional 5G traffic that is given to users on an unlimited basis without being charged individually.
“Our new prepaid plans would foster industry innovation towards 5G and AI and drive sustainable growth. Jio with its superior network and new service propositions would further build its market leadership with a customer-first approach,” said Akash Ambani, Chairman of Reliance Jio Infocomm.
Revenue from operations at Reliance Retail Ventures increased 6.6 per cent YoY to Rs 66,260 crore. The segment’s EBITDA increased 10.5 per cent YoY to Rs 5,664 crore during the quarter due to increased traffic, store growth, and operational efficiency that improved margins.
PAT increased 4.6 per cent YoY at Rs 2,549 crore. During the quarter, Reliance Retail opened 331 new stores, increasing the total number of outlets in its network to 18,918 with an operating area of 81.3 million square feet.
Over 296 million consumers were recorded throughout the quarter, representing an increase of 18.9 per cent YoY.
“The business continued investments in stores, platform enhancements, product design and sourcing capabilities to further strengthen the value proposition to the customers. These initiatives will help sustain growth momentum in the near and medium term,” the company said.
“During the quarter, the business entered into a long-term licensing arrangement with ASOS, UK’s leading online fashion retailer, to exclusively retail ASOS’s curated portfolio of fashion-led own-brand labels across all online and offline channels in India,” the company added.
Due to higher product prices that tracked a nearly 9 per cent increase in Brent crude oil prices and higher volumes driven by robust domestic demand, the division’s revenue increased by 18.1 per cent YoY to Rs 157,133 crore. However, because of lower transportation fuel cracks, its EBITDA fell by 13per cent and its margin fell by 320 basis points YoY.
Revenue for the segment increased 33.4 per cent YoY to Rs 6,179 crore, while EBITDA increased 29.8 per cent YoY. Yet, YoY, the EBITDA margin decreased by 240 bps.
Higher quantities drove revenue, somewhat offsetting reduced price realisation from CBM Field and KG D6. According to the Q1 figures, the average KGD6 output was 21,640 barrels per day of oil and condensate and 28.7 MMSCMD of gas.
Due to the recently-concluded Indian Premier League, income being split across two quarters this year, the segment’s revenue from operations decreased 3per cent YoY to Rs 3,141 crore.
The segment’s EBITDA fell 97.2 per cent YoY, and its EBITDA margin fell by 320 basis points. During the quarter, the segment experienced a loss of Rs 221 crore.
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