Reliance Industries Ltd announced a nearly unchanged net profit for the March quarter, despite achieving a historic high in annual earnings, propelled by a resurgence in its foundational oil and petrochemicals segment and consistent performance in its telecom and retail sectors.
In its latest financial disclosure to the stock exchange, the diversified conglomerate reported a consolidated net profit of Rs 18,951 crore, or Rs 28.01 per share, for the quarter ending March 2024. This is slightly down from Rs 19,299 crore, or Rs 28.52 per share, in the same period the previous year.
However, the company saw an increase in profits on a sequential basis, rising from Rs 17,265 crore in the quarter ending December 2023.
Over the entire fiscal year of 2024, Reliance achieved an unprecedented net profit of Rs 69,621 crore, an increase from Rs 66,702 crore in the prior fiscal year, marking a significant milestone as it reached a turnover of Rs 10 lakh crore for the first time, a 2.6% increase from Rs 9.74 lakh crore in the fiscal year 2023.
The oil-to-chemicals (O2C) division, a crucial revenue generator for the company, showed an increase in profitability both year-over-year and sequentially. Meanwhile, the retail sector's profits grew due to the opening of new stores, although customer foot traffic decreased. The telecommunications sector, led by Mukesh Ambani, experienced revenue growth as it surpassed competitors in gaining new subscribers and increasing data traffic.
The company's quarterly EBITDA rose by 14.3% year-over-year to Rs 47,150 crore, with growth noted across all divisions. Operational revenues for the quarter increased nearly 11% to Rs 2.64 lakh crore.
Revenue from the O2C sector grew by 11%, and EBITDA was up by 3% at Rs 16,777 crore for the quarter. This improvement was attributed to favorable raw material procurement for its refining operations and efficient use of ethane for chemical production, alongside a higher domestic product placement, though exports declined by 8.5%.
Reliance Jio Infocomm Ltd, the digital services arm, saw a 12% rise in its net profit to Rs 5,583 crore for the quarter, driven by a spike in data usage to 40.9 billion GB from 38.1 billion GB in the previous quarter. By the end of the fiscal year, Jio's profits reached Rs 21,424 crore, up from Rs 19,124 crore the previous year.
The retail segment also reported an 11.7% increase in profits to Rs 2,698 crore, with the number of stores slightly increasing to 18,836. Despite a decrease in foot traffic compared to the previous quarter, it remained higher than the same quarter the previous year.
The oil and gas EBITDA surged by 47.5% to Rs 5,606 crore, buoyed by higher gas production volumes which helped mitigate lower price realizations.
The company highlighted its KG-D6 block in the Krishna Godavari basin, now producing about 30 million standard cubic meters of gas and 23,000 barrels of oil/condensate per day.
Reliance's total debt climbed to Rs 3.24 lakh crore at the end of March, from Rs 3.11 lakh crore at the end of December. However, its net debt decreased to Rs 1.16 lakh crore from Rs 1.25 lakh crore a year earlier.
Mukesh Ambani, chairman and managing director, praised the robust performance across all business segments, contributing to several new benchmarks, including crossing Rs 1 lakh-crore in pre-tax profits for the first time.
He emphasized the dynamic expansion of the digital services segment, including substantial growth in 5G customers, and the strong performance of the retail arm, supported by an expansive omni-channel strategy.
Ambani also highlighted the O2C segment's resilience amid global fuel demands and refining constraints, and despite challenging market conditions in the downstream chemical industry, the company maintained its leadership through effective cost management and operational flexibility.
He reaffirmed the company's dedication to ongoing projects and initiatives, particularly in new energy, aiming to ensure sustainable growth into the future.
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