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PremiumReliance Q3 Results Highlights: Reliance Industries Ltd (RIL) announced its October-December quarter results for fiscal 2023-24 (Q3FY24), reporting a rise of 11 per cent in net profit at ₹19,641 crore, compared to ₹17,706 crore in the year-ago period.
Billionaire Mukesh Ambani-led energy-to-telecom conglomerate's gross revenue in the third quarter of current fiscal rose 3.2 per cent year-on-year (YoY) to ₹2,48,160 crore led by continued growth momentum in consumer businesses.
The gross revenue was largely led by retail, oil & gas segments, while the oil-to-chemicals (O2C) arm's revenue declined on on account of lower price realisation led by 5.3 per cent YoY decline in average brent crude oil prices.
On the operations front, the company's earnings before interest, taxes, depreciation, and amortization (EBITDA) in the December quarter rose 17 per cent to ₹44,678 crore, driven by retail and oil & gas segments. Brokerages had expected to report a decent set of numbers for the third quarter of FY24, driven by higher utilisation of refineries sustaining their strong operating efficiency.
Stay tuned to our Reliance Industries Q3 results live blog for the latest updates.
Shares of Reliance Industries will be in focus on Saturday, January 20 after reporting the December quarter earnings. The stock settled flat-to-positive in today's trading session ahead of results as D-Street.
‘’The Oil & Gas segment posted its highest ever quarterly EBITDA. I am happy to note that KG D6 is now contributing 30 per cent of India’s gas production, fueling its transition towards a greener and cleaner tomorrow.
The O2C segment delivered resilient performance aided by operational flexibility and strong domestic demand. Staying true to its commitment to sustainability, Reliance has become the first Indian company to chemically recycle pyrolysis oil into circular polymers.
The New Energy Giga Complex is all set to be commissioned in the second half of CY24. I am confident that Reliance’s New Energy business will play a pivotal role in the global movement for adoption of cleaner fuels,'' said Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries.
--Entertainment business operating revenue declined 12 per cent due to Movie and Sports segments. Sports revenue was lower as the base quarter had FIFA World Cup 2022. Digital ad revenue saw a strong growth driven by impact properties like Bigg Boss and Temptation Island. TV entertainment advertising revenue was flat despite having lower non-fiction content than last year.
-- Consolidated EBITDA was down due to Viacom18’s investments in growth verticals - Sports and Digital. Both these segments will be the leading drivers of revenue for the foreseeable future but require investments in the near term to build a strong consumer proposition. TV News business delivered a strong improvement in profitability driven by revenue growth
Quarterly Performance (3Q FY24 vs 3Q FY23)
• Business delivered strong operating performance across verticals, however, revenue from operations was down by 4.1 per cent Y-o-Y to ₹1,774 crore, primarily due to lower Movie Studio revenue.
• TV news business revenue was up 23 per cent Y-o-Y, driven by the strong growth in advertising revenue across clusters. Digital News business delivered 20 per cent growth in revenue, driven by IP-events and video monetization across digital platforms.
Quarterly Performance (3Q FY24 vs 3Q FY23)
• 3Q FY24 revenue is higher by 50.2 per cent as compared to 3Q FY23 mainly on account of higher volumes partly offset by lower price realisation from KG D6 Field.
• The average price realised for KG D6 gas was $9.66/MMBTU in 3Q FY24 vis-à-vis $11.32/MMBTU in 3Q FY23. The average price realised for CBM gas was $15.55/MMBTU in 3Q FY24 vis-à-vis $20.92/MMBTU in 3Q FY23.
• EBITDA increased to ₹5,804 crore which is up by 49.6 per cent on Y-o-Y basis. EBITDA margin was at 86.4 per cent for 3Q FY24
Global oil demand in 3Q FY24 rose 1.7 mb/d Y-o-Y to 102.0 mb/d due to higher demand mainly from America and Asia. Jet/Kero and Gasoline each posted strong demand growth Y-o-Y at ~1 mb/d while diesel demand declined by ~0.2 mb/d.
• Dated Brent averaged $84 /bbl in 3Q FY24, lower by $4.7 /bbl. Y-o-Y. Crude oil benchmarks declined Y-o-Y due to concerns of global economic slowdown and seasonal lower demand. Crude supply remained adequate despite headline production cuts by OPEC+ countries.
• Global refinery crude throughput was higher by 0.5 mb/d Y-o-Y while it declined by 1.7 mb/d Q-o-Q to 81.7 mb/d in 3Q FY24
‘’Planned maintenance and inspection shutdown of CDU, FCCU, Delayed Coking and ROGC complex impacted yields and profitability. O2C EBITDA would have been higher on Y-o-Y and comparable on Q-o-Q basis if all major units were available during the quarter,'' said Reliance. Backed by higher share of international volumes, Aviation fuel business clocked highest ever monthly volume in December’23 with remarkable sales growth on Y-o-Y basis.
To reduce feedstock cost, arbitrage barrel sourcing was maximized as regional OSPs remained high.
• Throughput of primary and major secondary units was maximized to capture favorable margins.
• During the quarter, alkylate and high RON gasoline export were maximized to benefit from improved premiums and netback in overseas market.
• Aromatics margins remained subdued during the quarter and production was optimized to capture the chain margins.
Quarterly Performance (3Q FY24 vs 3Q FY23)
• Segment revenue for 3Q FY24 reduced by 2.4 per cent Y-o-Y to ₹141,096 crore ($17.0 billion) primarily on account of lower price realisation led by 5.3 per cent Y-o-Y decline in average brent crude oil prices.
• Segment EBITDA for 3Q FY24 marginally increased by one per cent Y-o-Y to ₹14,064 crore led by higher gasoline cracks and advantageous feedstock sourcing; this was partially offset by lower downstream chemical margins and planned maintenance and inspection shutdown
Santosh Meena, Head of Research, Swastika Investmart Ltd said, ‘’Reliance has broken out of a multi-month consolidation pattern with a bullish flag formation near its 20-day moving average (DMA). This technical setup suggests the potential for further upside towards the 2,900 level.''
‘’However, option data hints at some resistance near the 2,800 strike price, as call writers seem confident at that level. Therefore, a decisive break above 2,800 would be needed to overwhelm these call writers and fuel further gains. On the downside, the 20-DMA at 2,650 acts as a strong support level,'' added Meena.
-Grocery delivered 41 per cent Y-o-Y growth with uptick led by festive demand.
-JioMart delivers steady growth led by increase in traffic and average order value. The platform also strengthened its catalogue with option count scaling up 84 per cent Y-o-Y and seller base expanding by more than 3x over last year.
-Consumer brands delivered ~3x Y-o-Y growth in revenues and distribution reach, with categories like beverages, general merchandise and staples driving the growth momentum
-Fashion & Lifestyle business delivers 28 per cent Y-o-Y growth led by higher footfalls and conversions, as customers shopped for the festive season.
-Consumer Electronics business delivered 19 per cent Y-o-Y growth over last year on the back of higher basket value and improved conversions
-JioMart Digital business continued its growth journey and expanded its merchant partner base by 34 per cent Y-o-Y
The business expanded its store network with 252 new store openings taking the total store count at the end of the quarter to 18,774 stores with an area of 72.9 million sq ft.
• The quarter recorded footfalls of over 282 million across formats, a growth of 40.3 per cent Y-o-Y.
• Digital Commerce and New Commerce businesses continued to grow and contributed to 19 per cent of revenue
EBITDA margin from operations on net sales was at 8.1 per cent, up 40 bps YoY driven by operating leverage and continued focus on cost management.
• Depreciation increased on account of higher asset base due to addition of new stores and supply
chain infrastructure.
• Higher finance cost on account of increase in interest rate and borrowings for business expansion.
Reliance Retail delivered Gross Revenue of ₹83,063 crore for 3Q FY24, a growth of 22.8 per cent Y-o-Y led by Grocery, Fashion & Lifestyle and Consumer Electronics businesses.
• Business posted an EBITDA of ₹6,258 crore which was up by 31.1 per cent on a YoY basis. EBITDA before Investment Income was recorded at ₹6,061 crore, up 30.1 per cent on a YoY basis.
Akash M Ambani, Chairman of Reliance Jio Infocomm said “Jio has accomplished the fastest rollout of 5G network witnessed anywhere in the world and is now available across India. JioAirFiber has seen strong initial demand and customer engagement, especially in underserved tier 3/4 towns and rural areas. Jio’s ahead of the curve investments on next-generation network, digital technologies and tailor-made products for all customer cohorts will ensure sustainable industry leading growth in coming years."
Jio Platforms has added 11.2 million subscribers, highest in last 10 quarters with data traffic increasing 31.5 per cent YoY to 38.1 exabytes during Q3FY24
• Operating revenue (net of GST) growth continued to be driven by robust subscriber growth across
mobility and homes, and benefit of mix improvement in ARPU.
• Double-digit EBITDA growth led by higher revenue and increase in margins.
• Depreciation increased due to higher network utilisation and incremental addition to the gross block.
Depreciation increased by 26.7 per cent YoY to ₹12,903 crore on expanded asset base across all the businesses, higher network utilisation in Digital Services business and ramp-up in upstream production.
• Finance Costs increased by 11.3 per cent YoY to ₹5,789 crore primarily due to higher loan balances and higher interest rates.
• Tax Expenses increased by 22.1 per cent YoY to ₹6,345 crore.
Capital Expenditure for the quarter ended December 31, 2023, was ₹30,102 crore with investments in pan-India 5G roll-out, expansion of retail infrastructure and new energy business. This excludes amount incurred towards spectrum and adjusted for capital advances and regrouping of assets.
Isha M. Ambani, Executive Director, Reliance Retail Ventures Limited, said "Reliance Retail has delivered a strong performance during the festive quarter. Our business success is intricately woven into the larger fabric of India's economic growth, and together, we are shaping a compelling story of innovation and world-class possibilities for the future. We remain resolute in our commitment to bring high-quality products at great value to our customers with an engaging shopping experience."
The company reported revenue from operations at ₹74,373 crore, marking a 23.8 per cent YoY growth compared to Q3 FY23's revenue of ₹60,096 crore, driven by strong performance in the Grocery, Fashion, Lifestyle, and Consumer Electronics segments.
The company achieved its highest-ever quarterly EBITDA, reaching ₹6,258 crore in Q3 FY24, reflecting a 31.1 per cent improvement over Q3 FY23's EBITDA of ₹4,773 crore and a 7.52 per cent increase from the Q2 FY24 figure of ₹5,820 crore. The EBITDA margin reached 8.4 per cent, up 50 basis points YoY, driven by operating leverage and a consistent focus on cost management.
The average revenue per user or ARPU remained flat sequentially at ₹181.7 but improved from ₹178.2 a year ago.
“ARPU increased two per cent YoY to ₹181.7 with better subscriber mix, partially offset by unlimited data allowance on 5G network," RIL said.
Operating revenue growth continued to be driven by robust subscriber growth across mobility and homes, and the benefit of mix improvement in the average revenue per user or ARPU.
‘’Jio has completed in India the fastest rollout of True 5G services anywhere in the world. Every city, town, and village in the country is now equipped with high-speed digital connectivity, which will usher in a new era of unparalleled digital accessibility and technology-led growth. The strong uptake of the JioBharat phone and JioAirFiber services has resulted in continued expansion of Jio’s subscriber base, contributing to the stellar growth numbers of the digital services business,'' said Mukesh D. Ambani, Chairman and Managing Director, RIL.
Revenue for Jio increased by 11.4 per cent Y-o-Y, led by robust subscriber growth across mobility and homes, and benefit of mix improvement in ARPU.
Revenue for Reliane Retail grew by 22.8 per cent Y-o-Y with strong growth across all consumption baskets.
O2C revenue declined by 2.4 per cent primarily on account of lower price realisation led by 5.3 per cent Yo-Y decline in average brent crude oil prices.
Revenue from Oil & Gas segment increased significantly mainly on account of higher volumes partly offset by lower gas price realisation from KG D6 field.
RIL's EBITDA increased by 16.7 per cent Y-o-Y to ₹44,678 crore. Key contributors included:
--An 11.5 per cent Y-o-Y increase in Jio's EBITDA with higher revenue and increase in margins.
--A 31.1 per cent increase in Reliance Retail's EBITDA led by record footfalls amid festive season. EBITDA margin for RRVL improved by 50 bps to 8.4 per cent reflecting operating leverage and continued focus on cost management initiatives
Net profit up 11 per cent to ₹19,641 crore. Gross Revenue was ₹248,160 crore, up 3.2 per cent Y-o-Y, supported by continued growth momentum in consumer businesses.
For the nine months ended December, the telecom operator’s profit rose 12 per cent YoY to ₹15,129 crore, and revenue grew by 10 per cent to ₹74,160 crore. As of the end of December, the debt-to-equity ratio was 0.19 times, up from 0.17 times in the same quarter a year ago. The operating margin for the quarter contracted to 26.3 per cent from 26.6 per cent in the year-ago period.
Jio's total expenses for the December quarter increased to ₹18,518 crore from ₹16,839 crore in the year-ago period, and 18,063 crore in the preceding September quarter. The network operating expenses rose to ₹7,706 crore from ₹7,227 crore in the year-ago period and ₹7,607 crore in the September quarter.
The company added 11.2 million users in the December quarter for a total of 470.9 million. On the operating front, earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 12 per cent in the three months ended December 31. The total data traffic on Jio Network increased 32 per cent to 38.1 exabytes during the December quarter.
Jio Q3: The telecom operations of Mukesh Ambani's Reliance Industries' revenue from operations stood at ₹25,368 crore, up 2.5 per cent during the quarter ended December from ₹24,750 crore in Q2FY24.
Reliance Jio Q3 Results: Revenue at ₹25,368 crore. Net profit rises three per cent sequentially to ₹5,208 crore
Revenue is estimated to drop one per cent to ₹2,29,459 crore from ₹2,31,886 crore sequentially. Consolidated EBITDA during the quarter ended December 2023 is likely to fall 1.6 per cent to ₹40,324 crore from ₹40,968, sequentially, as per Equirus Securities.
RIL shares settle flat-to-positive ahead of earnings announcement. Shares settled 0.1 per cent higher at ₹2,735.05 apiece on the BSE.
RIL’s operating performance may see some decline on a sequential basis, with consolidated EBITDA expected to decline 2% sequentially, as per analysts estimates, though on a year-on-year basis, it will still be higher.
Reliance Q3 Results Live: JM Financial maintains ‘Buy’ rating on Reliance Industries as it believes net debt concerns are overdone, and also because RIL has industry leading capabilities across businesses to drive robust 14-15% EPS CAGR over the next 3-5 years with Jio’s ARPU expected to rise at 10% CAGR over FY23-28, and continued strong momentum in Retail. The brokerage firm has marginally tweaked RIL’s FY25-26 EBITDA by 1% to account for continued weakness in petchem margin. It raised the target price on Reliance Industries shares to ₹3,050 from ₹2,900 earlier.
Reliance Jio EBITDA is expected to increase nearly 3.5% QoQ, driven by nearly 12 million overall net subscriber adds versus nearly 11 million QoQ and modest increase in blended ARPU (average revenue per user) to ₹183 versus ₹182 QoQ on rising FTTH (Fiber to the Home) contribution. Reliance’s retail business is expected to increase nearly 6% QoQ, driven by increased store footprint, increased footfalls and benefits of operating leverage, according to Kotak Institutional Equities.
Reliance Q3 Results Live: Kotak Institutional Equities expects RIL’s standalone EBITDA to decline nearly 9% QoQ on sequential weakness in refining and petrochemical margins. It expects consolidated EBITDA to decline nearly 2% QoQ as weaker standalone performance is partly offset by continued growth in digital services and organised retail.
Kotak expects an 8% YoY increase in RIL's net sales and a 2.7% YoY increase in adjusted PAT for Q3FY24.
In E&P, a nearly 18% reduction in the HPHT (high pressure, high temperature) gas ceiling price would likely be offset by QoQ lower costs (from elevated levels in Q2), Kotak said.
Reliance Q3 Results Live: Reliance share price has given more than 18% returns in the past three months. RIL stock is up 7% in one month, while it has gained over 10% in one year.
Reliance Industries Ltd (RIL) is sprinting towards commencing New Energy-chain production and with its strategic mergers & acquisitions (M&A), PLI-wins and plant progress. Thus, given its fully backward integrated 20GW module capacity, Reliance Industries needs a valuation re-rating for its New Energy business, analysts said.
Nuvama Institutional Equities raised its target price on Reliance Industries shares by 5% to ₹3,105 per share by rolling forward RIL’s New Energy valuation to FY26E sales. It has a ‘Buy’ rating on the RIL shares. Read here
Reliance Q3 Results Live: Reliance Q3 net profit is expected to rise 5.9% to ₹20,980 crore from ₹19,820 crore in the September quarter. Revenue is estimated to drop 1% to ₹2,29,459 crore from ₹2,31,886 crore, QoQ. Consolidated EBITDA during the quarter ended December 2023 is likely to fall 1.6% to ₹40,324 crore from ₹40,968, sequentially, as per Equirus Securities.
Reliance Q3 Results Live: Reliance Industries’ profitability to remain flat sequentially. Jio and Retail should continue to deliver robust performance, while E&P and O2C should witness decline on lower realizations and product cracks, says Equirus Securities. Margin outlook in refinery and petchem would be key to watch out for.
Reliance Q3 Results Live: Brokerage firm Prabhudas Lilladher maintains its ‘Accumulate’ rating on Reliance Industries and raised target price to ₹2,718 per share from ₹2,618 earlier, valuing standalone business at 7.5x FY26 EV/EBITDA, Retail at 39x FY26 EV/EBITDA and Jio at 15x FY26 EV/EBITDA.
Reliance Q3 Results Live: Reliance Industries’ refining throughput is estimated at 17.0 mmtpa. Petchem profitability will decline QoQ. Refining margins too are expected to decline due to fall in Singapore GRM. We expect Jio to show steady performance (4% QoQ revenue growth and 2% QoQ ARPU hike), while retail segment profitability should be resilient, said Prabhudas Lilladher.
Reliance Q3 Results Live: Reliance Digital EBITDA is expected to grow by 2.9% QoQ to ₹14500 crore due to improvement in Average Revenue Per User (ARPU) to ₹183 from ₹182 in Q2FY24 and increase in net subscribers by 9 million QoQ. Retail EBITDA is likely to grow by 6.3% QoQ to ₹6,200 crore likely driven by rising store count and increase in footfalls, as per JM Financial.
Speaking on RIL share price outlook, Shiju Koothupalakkal, Technical Analyst at Prabhudas Lilladher said, “Reliance share price is looking positive on the chart pattern. Currently, the Sensex heavyweight has crucial support placed at ₹2,705 apiece levels and the stock is facing resistance at ₹2,790 level. Reliance shares may become bullish once they breach the current resistance on a closing basis. So, Reliance shareholders are advised to hold the scrip maintaining stop loss at the ₹2,700 mark. Those who want to make a fresh entry ahead of the Q3 results today can buy Reliance shares at current levels maintaining the stop loss at ₹2,700 level. The stock may go up to ₹2,860 per share level after breaching the ₹2,790 hurdle decisively."
Reliance Q3 Results Live: Reliance’s O2C EBITDA is estimated to decline 11.7% QoQ to ₹14,400 crore due to moderation in GRM to $10/bbl driven by moderation in diesel cracks and Russian crude discount. It was also impacted by lower refining throughput due to maintenance shutdown and continued weakness in petchem margin, said JM Financial.
The brokerage also assumes E&P EBITDA to rise 13% QoQ to ₹5,400 crore due to lower opex and marginal increase in KG D6 gas output, party offset by cut in ceiling price for HPHT gas.
Reliance Q3 Results Live: Reliance Q3 consolidated revenue is expected to rise 3.2% sequentially to ₹2,39,270 crore, while its net profit may fall 9.2% QoQ to ₹15,790 crore. EBITDA is likely to fall 1.6% QoQ to ₹40,330 crore, while EBITDA margin is expected to drop by 81 bps to 16.9%, as per estimates by Prabhudas Lilladher.
Reliance Q3 Results Live: Reliance Industries’ operating performance is likely to improve amid improving refining margins. We expect Jio to show steady performance, while retail segment profitability should be resilient, said brokerage house Prabhudas Lilladher.
Reliance Q3 Results Live: Ahead of the Q3 results today, Reliance share price today witnessed some selling pressure in the early morning deals. Shares of Reliance Industries Ltd (RIL) today opened higher at ₹2,753 apiece on the BSE but the Sensex heavyweight soon witnessed profit-booking and touched an intraday low of ₹2,718.05 per share level, logging an intraday loss of nearly half a percent on Friday. Read here
Reliance Q3 Results Live: Reliance Retail EBITDA is likely to remain strong, up 31% YoY and 9% QoQ, on higher footfalls, said Nuvama Institutional Equities. Jio’s EBITDA is likely to surge 13% YoY and 5% QoQ on a high subscriber base (up 9% YoY and 2% QoQ). Average Revenue Per User (ARPU) during the quarter shall likely rise by 4% YoY and 2% QoQ.
Reliance Q3 Results Live: Reliance Q3 EBITDA is anticipated to surge 13% YoY and 4% QoQ on account of strong performance across all verticals except the O2C segment. EBITDA for O2C business is expected to remain flat YoY and down 14% QoQ on weak refining and petchem, as per Nuvama Institutional Equities.
Benchmark Singapore GRMs have fallen 14% YoY and 43% QoQ on weak global product cracks. We expect RIL ONG’s EBITDA to rise ~34% YoY/ +9% QoQ on increased production from KG-D6 block offset by 20% YoY dip in deepwater gas prices (-18% QoQ), said the brokerage firm.
On the refining margin front, the volatility continued during the October-December quarter. The benchmark Singapore GRM (Gross refining margins) declined to $5.6 a barrel during the 3QFY24 from $9.5 a barrel in 2QFY24. The Petchem margins trend also remained downward in 3QFY24. The Petchem prices declined 3% sequentially and 4% YoY in 3QFY24.
