Back
PremiumReliance Industries Q2 Results Highlights: Billionaire Mukesh Ambani-led Reliance Industries (RIL) announced its July-September quarter results for fiscal 2023-24 (Q2FY24), reporting a rise of 27 per cent in consolidated net profit at ₹17,394 crore, compared to ₹13,656 crore in the corresponding period last year.
The oil-to-telecom conglomerate's growth in net profit was driven by higher EBITDA and a stronger retail business. Reliance Retail's net profit rose 21 per cent to ₹2,790 crore in the September quarter. On the other hand, the telecom arm reported its smallest increase in profit in seven quarters on the back of higher expenses.
Stay tuned to our Reliance Industries Q2 Results Live Blog for the latest updates.
Stay tuned to Live Mint for all business and market updates.
Shares of Reliance Industries will be in focus on Monday, October 30, after reporting the September quarter earnings today. The stock gained nearly two per cent in today's trading session ahead of Q2 results as D-Street and analysts expected strong performance by the conglomerate.
The O2C segment was impacted by subdued global demand in a well-supplied market reflecting in lower PE and polyester chain deltas. The segment's EBITDA grew by 36 per cent YoY to ₹16,281 crore while the EBITDA margin moved up by 350 bps to 11 per cent. The sustained performance in the O2C segment was on strong domestic demand, optimised feedstock cost, and strength in gasoline and PVC margins.
Isha Ambani, Executive Director, Reliance Retail Ventures, said: “We have delivered yet another quarter of stellar performance and achieved an all-time high across financial metrics. The performance is a testament to our customer-centric approach that defines Reliance Retail and we look forward to serving our customers this festive season with renewed optimism and enthusiasm."
Revenue from operations for the segment grew 20.4 per cent YoY to ₹1,865 crore but the segment saw a loss of ₹111 crore during the quarter. In Q2FY23, the segment's loss was ₹29 crore while in Q1FY24, the segment earned a profit of ₹29 crore. EBITDA for the segment fell 186.1 per cent YoY while the EBITDA margin contracted by 400 bps in Q2FY24.
Telecom arm's average revenue per user (ARPU) rose 2.6 per cent YoY to ₹181.70, compared to ₹180.50. The net subscriber additions during the September quarter stood at 11.2 million.
Reliance Industries' EBITDA saw a healthy 30.2 per cent YoY rise to ₹44,867 crore while the EBITDA margin jumped 390 bps YoY to 17.5 per cent.
-The quarterly revenue fell 7.3 per cent YoY on account of a 14 per cent reduction in crude oil prices
Chairman Mukesh Ambani on the performance of O2C segment Reliance Chairman Mukesh Ambani said: “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. The growth of oil and gas business is particularly noteworthy with production from KGD6 block ramping up and providing valuable fuel for energy transition to the Indian economy."
Commenting on Q2FY24 results, Mukesh D Ambani, Chairman and Managing Director, Reliance Industries Limited said: “Strong operational and financial contribution from all business segments has helped Reliance deliver another quarter of robust growth."
RIL's total revenue from operations was almost flat at ₹2.34 lakh crore. Earnings from the oil and gas business rebounded, and revenue rose on the back of growth in fashion and lifestyle as well as grocery and e-commerce.
Reliance Industries announced its July-September quarter results for fiscal 2023-24 (Q2FY24), reporting a rise of 27 per cent in consolidated net profit at ₹17,394 crore, compared to ₹13,656 crore in the corresponding period last year
Jio has installed over 10 lakh 5G cells across all 22 circles of India, he said speaking at the inauguration of the India Mobile Congress.
"I am humbled to share that Jio alone has contributed to 85 per cent of the overall 5G capacity in the country... and provided one of the fastest 5G internet speeds in the world," he said.
Furthermore, Jio's 5G roll-out is powered by a 100 per cent in-house 5G stack, designed, developed and manufactured entirely by Indian talent, he added.
Jio has unleashed the fastest roll-out of 5G technology witnessed anywhere in the world and is deploying a 5G cell every 10 seconds, Reliance Jio Infocomm Chairman Akash Ambani said on Friday.
Stating that Prime Minister Narendra Modi's leadership has brought India and Indians together, motivating the entire nation, Ambani said, "We promise you that through the power of technology, we will build a digital statue of unity."
Reliance Industries is all set to finalise a multi-billion dollar deal with Walt Disney Co. to buy its India operations, reported Bloomberg citing sources earlier this week. After the deal, Reliance is expected to hold a controlling stake in the Disney Star business, which has an estimated valuation of $10 billion. The American entertainment giant will hold minority stake in the business.
Reliance Jio Infocomm, India's biggest telecom carrier by subscribers, reported its slowest profit growth in seven quarters in the July-September quarter, hurt by higher expenses and a lack of recent tariff hikes. Jio did not announce any tariff hikes in the quarter. It is looking to further boost user growth with the recent launch of a 4G budget-friendly phone and wireless broadband Jio AirFiber.
Investors will keenly watch for any clarity on ₹75,000 crore announcement in the new energy business, growth in retail store additions and any pricing action in telecom segment. Emkay Global expects RIL to report 27.7 per cent YoY surge in consolidated profit after tax at ₹17,435.60 crore compared to ₹13,656 crore in the corresponding quarter last year.
Relinace Jio's operating margin improved 10 basis points year on year to 26.4 per cent in the July-September quarter. Its profit margin rose 40 basis points to 17.40 per cent.
Reliance Jio's EBITDA in the September quarter came in at ₹12,953 crore, compared to ₹12,578 crore in the year-ago period. Margin stood at 52.3 per cent, similar to the preceding April-June quarter.
Reliance Jio reported a 12 per cent year-on-year (YoY) rise in standalone net profit for the quarter ended September 2023 to ₹5,058 crore from ₹4,518 crore a year ago. Sequentially, net profit for Q2FY24 rose 4 per cent from ₹4,863 crore in Q1FY24. Reliance Jio's Q2FY24 revenue ₹24,856 crore compared to ₹22,633 crore a year ago.
Reliance Jio unveils JioSpaceFiber: India's first satellite-based gigabit broadband service for nationwide access
-Reliance Jio Infocomm Ltd, India's top carrier, announced on Friday the rollout of its JioSpaceFiber satellite broadband service, which it showcased at the India Mobile Congress as the nation's inaugural satellite-driven giga fiber service.
The shareholders of Reliance Industries (RIL) have approved the appointment of Isha Ambani, Akash Ambani and Anant Ambani to the board as non-executive directors, the firm announced in a BSE exchange filing on Friday. The resolutions were passed through postal ballot.
Reliance's net profit is estimated at ₹17,482 crore, up 27.2 per cent year-on-year. RIL’s second quarter EBITDA is expected at ₹39,696 crore, up 28 per cent year-on-year, according to brokerages.
Shares of Jio Financial Services settled 3.26 per cent higher at ₹223 apiece on the BSE.
Shares of Reliance Industries settled 1.75 per cent higher at ₹2,265.25 apiece on the BSE.
Reliance Industries Ltd-backed Jio Financial Services reported a net profit of ₹668.2 crore, doubling from the previous quarter on the back of higher income from operations.
This was the first financial result of the company after it got listed on the stock exchanges on 21 August. Post the demerger of the financial services business of Reliance Industries, Jio Financial Services plans to enter consumer finance, asset management and insurance.
The company's total revenues stood at ₹608 crore in the September quarter, up 47% from the sequential quarter. While interest income in Q2 was lower than Q1, a dividend income of ₹217 crore in the September quarter propped up total revenues. Read here
Nuvama Institutional Equities expects Reliance Industries’ revenue in the quarter ended September 2023 to drop 3% to ₹2,01,558 crore from ₹2,07,559 in the June quarter.
Consolidated net profit of the conglomerate is expected to rise 9% to ₹17,482 crore from ₹16,011 crore, QoQ.
It anticipates 4% QoQ rise in RIL EBITDA on account of strong performance across all verticals.
Brent crude prices averaged $86.4 per barrel in Q2FY24, up 10% QoQ, led by a tighter supply outlook and the extension of voluntary cuts by Saudi Arabia and Russia to December 2023. Analysts expect current Brent prices to sustain at $90/bbl throughout FY25 as IEA expects oil markets to tighten from 2HCY23 onward.
Singapore GRM saw a sharp QoQ rise averaging $9.5/bbl in Q2FY24 as against $4.0/bbl in Q1FY24. Strong Chinese demand, low inventories of refining products, temporary ban on Russian diesel exports and large speculative positions in diesel on expectation of the US avoiding a recession had rallied refining margins in Q2 though this has moderated recently for the Indian energy companies. Petchem, however, was subdued for the companies in this sector with margins declining 13% QoQ impacted by ongoing weakness in the Chinese property sector, as per Jefferies.
Reliance Industries’ Q2FY24 Ebitda is expected to be higher sequentially on the back of refining strength, growing upstream and stable consumer business.
O2C Ebitda should see 5% QoQ growth on stronger refining even as petchem remained weak. Upstream Ebitda too should see a sharp 18% QoQ rise on rising gas production, Jefferies said.
Jefferies expects a 2% sequential growth in Jio's Ebitda led by 11 million subscriber additions and a 1.6% QoQ increase in ARPU driven by higher no of days and improving subscriber mix.
Reliance Retail’s Ebitda should rise 7% QoQ on 12% core revenue growth (21% YoY) and steady margins, according to Jefferies.
For the consumer-facing business, Nomura estimates Reliance Jio’s EBITDA to rise 3% QoQ to ₹13,000 crore underpinned by strong EoP subscriber additions of 8 million and a modest 0.6% increase in ARPU to ₹182 per month.
Nomura estimates RIL’s retail segment EBITDA to increase by 4% QoQ to ₹5,100 crore, benefiting from a robust pace of store additions and rising footfalls.
Nomura estimates Reliance Industries’ Q2FY24 consolidated EBITDA to rise strongly by 8% sequentially to ₹41,100 crore, driven by a healthy performance across segments. It estimates standalone EBITDA to increase by a robust 13% QoQ to ₹16,400 crore during the quarter, underpinned by an increase in refining margins to $12 per barrel versus $10 per barrel in Q1FY24, which will be partly offset by a decline in petchem margins.
We factor in a sharp rise in upstream EBITDA underpinned by the rise in volumes following the commencement of the MJ field, while realisation will remain steady QoQ at $10.8/mmbtu.
Nuvama Institutional Equities anticipates Reliance Industries’ EBITDA to rise 26% YoY and 4% QoQ on account of strong performance across all verticals. It expects RIL ONG's EBITDA to rise 45% YoY and 15% QoQ on higher deepwater gas prices.
We expect O2C EBITDA to rise 30% YoY and 2% QoQ on strong refining offset by subdued petchem segment. Benchmark Singapore GRMs grew 36%YoY and 2.3x QoQ on relatively strong demand. Petchem demand however remained weaker during the quarter offset by falling Ethane prices, said the brokerage.
Retail EBITDA is likely to remain strong, up 22% YoY and 6% QoQ, on higher footfalls.
Reliance Jio's EBITDA is likely to surge 18% YoY and 6% QoQ on a high subscriber base. ARPU shall likely remain flat YoY and QoQ in Q2FY24 at ₹173, as per the brokerage estimates.
The shareholders of Reliance Industries (RIL) have approved the appointment of the children of Mukesh Ambani - Isha Ambani, Akash Ambani and Anant Ambani as the company's non-executive directors, the firm announced in a BSE exchange. The resolutions were passed through postal ballot.
The filing also informed that over 98% of the shareholders were in favour of the appointment of Isha and Akash. However, Anant's appointment saw some pushback with over 7% votes against the resolution but still almost 93% voted were in favour. Read here
Kotak Institutional Equities expects EBITDA of Reliance Retail to increase by around 5% QoQ, driven by increased store footprint, and benefits of operating leverage.
Kotak Institutional Equities expects EBITDA for Reliance Jio to increase 4% QoQ, driven by 10 million overall net subscriber additions and blended Average Revenue Per User (ARPU) improving to ₹183 versus ₹181 QoQ, on continued subscriber mix improvement, rising FTTH contribution, and QoQ higher days in 2Q.
Reliance Industries’ shareholders, in its Annual General Meeting (AGM), approved the appointment of Isha Ambani, Akash Ambani and Anant Ambani as Non-Executive Directors of the company with majority.
Motilal Oswal Financial Services expects Reliance Industries’ consolidated EBITDA at ₹37,900 crore, up 21% YoY and down 1% QoQ. It expects O2C segment’s EBITDA to grow 40% YoY and 3% QoQ to ₹16,800 crore. Production meant for sale is likely to rise 6% YoY to 17.2 mmt. Expect EBITDA/mt at $83, up 22% YoY.
Further clarity on ₹75,000 crore announcements in the new energy business, growth in Retail store additions, and any pricing action in Telecom are the key monitorable, said the brokerage house.
Kotak Institutional Equities expects RIL’s standalone EBITDA to improve 9% QoQ as increase in KG basin gas production and likely sequential improvement in GRMs would be partly offset by QoQ weaker petchem spreads. The brokerage expects consolidated EBITDA to improve by 6% QoQ on better standalone performance and steady growth in digital services and organized retail.
Reliance Industries share price traded over a percent higher on Friday ahead of the announcement of financial results for the quarter ended September 2023. RIL shares opened higher at ₹2,242 apiece as against previous close of ₹2,226.20 on the BSE. RIL stock gained as much as 2.03% to an intraday high of ₹2,271.55 in Friday early trade. The oil-to-telecom conglomerate will announce Q2FY24 earnings later today. Read here
Reliance Industries’ oil to chemicals (O2C) segment’s EBITDA is expected to rise 40% YoY and 3% QoQ to ₹16,800 crore.
EBITDA for Reliance Jio during the September quarter is estimated to increase 4% QoQ, driven by about 10 million overall net subscriber adds and blended ARPU improving to ₹183 from ₹181 in the June quarter on continued subs mix improvement, rising FTTH (Fiber-to-the-Home) contribution, and QoQ higher days in Q2.
Reliance Retail may also see nearly 5% sequential rise in EBITDA driven by increased store footprint, and benefits of operating leverage.
Reliance Jio has introduced JioSpaceFiber, India's first ever satellite-based giga fiber service. This service has been showcased at the India Mobile Congress, offering high-speed broadband connectivity to unreachable areas within India. JioSpaceFiber will soon be accessible throughout the entire nation, offering cost-effective pricing to users.
Currently, Jio serves more than 450 million Indian consumers with high-speed broadband fixed line and wireless services. In its commitment to enhancing digital accessibility for every Indian household, Jio has introduced JioSpaceFiber as an addition to its existing range of broadband services, which includes JioFiber and JioAirFiber, stated the Indian telecom giant. Read here
Reliance Industries’ net sales may fall 2% YoY to ₹2,25,400 crore, while its adjusted net profit may see a 21.4% YoY growth, as per estimates by Motilal Oswal Financial Services. RIL's consolidated EBITDA for Q2FY24 is expected to rise 21% YoY but fall 1% quarter-on-quarter (QoQ) to ₹37,900 crore. EBITDA margin for the quarter may improve to 16.8% against 13.6% YoY.
Reliance share price has been underperforming this year. RIL shares have lost over 4% in the last one month and have declined more than 9% in three months. The stock has fallen over 11% year-to-date (YTD).
After a subdued show in the April-June quarter, the September quarter (Q2) earnings of India's diversified behemoth Reliance Industries (RIL) is expected to show healthy year-on-year (YoY) growth in profit and EBITDA (earnings before interest, taxes, depreciation, and amortization) led by decent growth in oil to chemicals (O2C) segment as well as telecom and retail.
Apart from key numbers, investors will focus on updates on new energy business and trends in retail and telecom segments. Read full report here
Approximately 98 companies will release their September quarter results today. Some of the major the major players to announce their Q2 Results today are Reliance Industries Ltd (RIL), Maruti Suzuki India Ltd, Bajaj Finserv Ltd, Cipla Ltd, Dr. Reddy's Laboratories Ltd, and Union Bank Of India. Read here
Reliance Industries share price opened higher on Friday ahead of the announcement of financial results for the quarter ended September 2023. RIL shares opened higher at ₹2,242 apiece as against previous close of ₹2,226.20 on the BSE.
RIL stock gained as much as 1.21% to ₹2,253.15 on Friday early trade. The oil-to-telecom conglomerate will announce Q2FY24 earnings later today.
Reliance Industries (RIL), the billionaire Mukesh Ambani-led energy-to-telecom conglomerate, is set to report its financial results for the first quarter of FY24 today, October 27.
Download the App to get 14 days of unlimited access to Mint Premium absolutely free!
