Reliance Q2 Results: Healthy growth in consolidated profit, EBITDA; 5 key highlights from RIL's Q2FY24 earnings | Mint
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Business News/ Companies / Reliance Q2 Results: Healthy growth in consolidated profit, EBITDA; 5 key highlights from RIL's Q2FY24 earnings
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Reliance Q2 Results: Healthy growth in consolidated profit, EBITDA; 5 key highlights from RIL's Q2FY24 earnings

Reliance Q2 Results: RIL reported a 29.7 per cent year-on-year rise in its September quarter consolidated net profit at ₹19,878 crore.

Reliance Industries reported its July-September quarter earnings on Friday, October 27. REUTERS/Vivek Prakash (INDIA - Tags: BUSINESS) - RTR3380D (Reuters)Premium
Reliance Industries reported its July-September quarter earnings on Friday, October 27. REUTERS/Vivek Prakash (INDIA - Tags: BUSINESS) - RTR3380D (Reuters)

Reliance Industries (RIL), India's largest company by market capitalisation, on Friday (October 27) reported a 29.7 per cent year-on-year rise in its September quarter consolidated net profit at 19,878 crore. EBITDA, too, 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.

Gross revenue, however, inched up marginally by 1.2 per cent YoY to 2,55,996 crore, supported by consumer businesses.

RIL is a diversified conglomerate and it operates in various sectors, including energy, petrochemicals, retail, and telecommunications.

“Strong operational and financial contribution from all business segments has helped Reliance deliver another quarter of robust growth," said Mukesh D. Ambani, Chairman and Managing Director of Reliance Industries Limited.

Also Read: Reliance Q2 Results Live Updates: RIL net profit rises 27% to 17,394 crore

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Here are five key highlights from Reliance Industries' Q2FY24 earnings:

1. Jio Platforms

RIL said strong subscriber growth across mobility and wireline services and scale-up of the digital services platform drove Jio Platforms' consolidated revenue and EBITDA growth.

Revenue from operations for the segment rose 10.7 per cent YoY to 26,875 crore in Q2FY24 while net profit saw a 12 per cent YoY growth to 5,297 crore.

EBITDA during the quarter rose 12.6 per cent YoY to 13,528 crore and EBITDA margin moved up by 80 bps YoY to 50.3 per cent.

Jio added an industry-leading 1.11 crore subscribers during the quarter with monthly churn of 1.7 per cent. ARPU increased 2.5 per cent YoY to 181.7 driven by a better subscriber mix across mobility and wireline partially offset by the start of 5G services, the company said in its exchange filing.

"I am happy that Jio remains committed to the vision of a digital India through the launch of two innovative and transformative offerings, JioAirFiber and JioBharat phone. By December 2023, we will also complete the pan-India rollout of 5G services and set a new global benchmark for the fastest roll-out of a 5G network across a large nation," said Ambani.

Also Read: Reliance Jio Q2 results: Net profit rises 12% on year to 5,058 crore, ARPU at 181.7

2. Reliance Retail Ventures

Revenue from operations for the segment rose 19.5 per cent YoY to 68,937 crore while net profit jumped 21 per cent YoY to 2,790 crore in Q2FY24.

EBITDA saw a 32.2 per cent YoY growth to 5,820 crore while the EBITDA margin rose 80 bps YoY to 8.4 per cent.

Reliance Retail saw 471 new store openings during the quarter, taking the total store count at the end of the quarter to 18,650 stores with an area of 71.5 million sq ft.

The quarter recorded footfalls of over 26 crore across formats, a growth of 40.5 per cent YoY.

"Digital commerce and new commerce businesses continued to grow and contributed 19 per cent of revenue, Fashion & Lifestyle business delivered 32 per cent YoY growth. The offline business delivered robust growth despite the festive season falling entirely in the next quarter," RIL said.

"Reliance Retail has continued to rapidly expand its offline as well as online presence while adding to its already impressive range of products and offerings. The strength and diversity of our retail business model is consistently delivering robust performance," said RIL Chairman.

Also Read: Reliance Retail Q2FY24 results: Net profit rises 21% to 2,790 crore, revenue up 19.5% YoY

3. Oil-to-chemicals (O2C) segment

O2C segment revenue declined by 7.3 per cent YoY to 1,47,988 crore mainly due to a 14 per cent reduction in crude oil prices, resulting in lower price realisation for products.

However, 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.

“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," RIL Chairman said.

4. Oil and gas

The segment's revenue rose 71.8 per cent YoY to 6,620 crore mainly on account of higher production of gas and oil and the commencement of condensate production from the MJ field along with 6 per cent higher gas price realisation in KG D6, said the company.

EBITDA increased 50.3 per cent YoY to 4,766 crore but EBITDA margin declined by 1,030 bps to 72 per cent.

"Margins were compressed during the quarter due to higher costs related to commissioning and ramp-up of MJ field and decommissioning activities at Tapti field," RIL said.

"The growth of the oil and gas business is particularly noteworthy with production from the KGD6 block ramping up and providing valuable fuel for the energy transition to the Indian economy," said RIL Chairman.

5. Media Business

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.

"EBITDA declined as the business made investments in growth verticals - sports and digital," RIL said.

According to the company's media release, Viacom18 continued to strengthen its sports portfolio with the acquisition of exclusive media rights for BCCI international and domestic cricket matches for five years and the Indian Super League for two years.

Viacom18’s portfolio of other sports includes Olympics 2024, NBA, La Liga, Ligue1, Serie A, Diamond League, MotoGP, Ultimate Table Tennis, and top BWF events, making it a complete destination for sports fans across the country, the company said.

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Published: 27 Oct 2023, 07:39 PM IST
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