RIL Q2 results: Net profit falls 5% YoY to Rs 16,563 crore, but better than estimates


Mukesh Ambani-owned Reliance Industries Ltd (RIL) on Monday reported a 5% decline in its consolidated net profit to Rs 16,563 crore for the quarter ending September 2024. It was Rs 17,394 crore in the year-ago period.

The profit beat ET Now's poll estimate of Rs 15,716 crore.

Revenue from operations grew marginally 0.2% year-on-year (YoY) to Rs 2.35 lakh crore in the period under review.

The oil-to-telecom group reported EBITDA of Rs 43,934 crore in the second quarter, a decline of 2% year-on-year. Meanwhile EBITDA margin fell 50 basis points to 17%.

Finance costs during the quarter rose 5% year-on-year to Rs 6,017 crore ($718 million), mainly due to higher debt.

RIL achieved strong growth in digital services and upstream business, which helped partially offset the weak contribution of O2C business impacted by adverse global demand-supply dynamics. “I am pleased to note that during the quarter Reliance once again demonstrated the resilience of its diversified business portfolio,” said Mukesh Ambani, Chairman and MD, RIL.

RIL quarterly results reviewETMarkets.com

jio platform

Segment-wise, the company's digital services arm Jio Platforms reported 23% growth in net profit after tax at Rs 6,539 crore, while revenue grew 18% year-on-year to Rs 37,119 crore.

The business's revenue growth was primarily driven by the partial impact of tariff increases and growth in the scale of home and digital services businesses.

Meanwhile, EBITDA for the quarter also improved 18% year-on-year to Rs 15,931 crore in Q2.

ARPU for the period increased to Rs 195.1 with partial follow-up of tariff increase and improved subscriber mix. The full impact of the tariff increase is likely to be felt in the next 2-3 quarters.

In less than two years since its launch, Jio has reached 148 million customers on True5G and remains the largest 5G operator outside China.

Mukesh Ambani said, “The digital services business continues to focus on innovative deep-tech solutions at the national level and is on its way to deliver the cutting-edge benefits of Artificial Intelligence to all Indians.”

Rapid usage of Jio AirFiber has accelerated the pace of home connections during the second quarter, with 2.8 million homes connected by September 2024.

Oil-to-Chemicals (O2C)

The company's mainstay O2C segment reported poor operating performance as EBITDA declined nearly 24% year-on-year to Rs 12,413 crore. This was primarily due to the adverse demand-supply balance, which led to a sharp 50% decline in transportation fuel cracks and continued weakness in the downstream chemical delta.

However, segment revenue for the second quarter rose 5% year-on-year to Rs 1.55 lakh crore ($18.6 billion), primarily due to higher volumes and increased domestic placement of products.

Depreciation for the business was also higher due to accelerated depreciation of catalysts and equipment replaced during the planned shutdown.

Global refinery crude throughput during the quarter was down 0.5 Mb/d year-on-year from 82.3 Mb/d in 2QFY20. Total throughput for the segment increased marginally by 1% year-on-year to 20.2 MMT.

Domestic polymer and polyester demand declined by 5% and 7% respectively in the period under review due to seasonal factors.

Reliance Retail

Retail business also had a slow second quarter as revenue declined 1% to Rs 76,302 crore. Growth was impacted by weak fashion and lifestyle (F&L) demand, continued focus on streamlining operations and a calibrated approach to B2B business to improve margins.

The segment's profit grew marginally 1% year-on-year to Rs 2,836 crore and EBITDA grew just 0.3% to Rs 5,850 crore.

The retail arm opened 464 stores, taking the total number of stores to 18,946 and the operating area to 79.4 million square feet.

Movement of more than 297 million people was recorded in the quarter, an increase of 14% year-on-year. The registered customer base increased to 327 million at the end of the September quarter.

Grocery recorded another quarter of consistent growth led by Smart Bazaar and Smart Stores. Growth was broad across categories led by growth in confectionery and snacks (30% y-o-y), fruits (26% y-o-y), and apparel (49% y-o-y).

“The retail segment is enhancing its consumer touchpoints and product offerings across physical and digital channels. Our focus on strengthening our retail operations will allow us to rapidly grow this business in the coming quarters and years and maintain our industry-leading growth momentum.” “Will help maintain.” Ambani said.

oil and gas

Second quarter revenue for the segment was down 6% year-over-year due to lower price realization partially offset by increased gas and condensate volumes in the KGD6 and CBM fields.

The average price of KG D6 gas in the quarter under review was $ 9.55 per MMBTU. The average price of CBM gas was $11.4 per mmBtu.

EBITDA for the quarter increased 11% year-on-year to Rs 5,290 crore. Meanwhile, margins stood at 85%.

media business

Operating revenues of the media business declined marginally by 2% during the quarter, mainly due to a sharp decline in revenues from the movie segment, a project-based business.

News portfolio revenue increased by 6% due to growth in advertising revenue from the digital segment across all brands.

The TV advertising environment was soft during the quarter as news-style advertising volumes declined more than 20% year-over-year across the industry.

Entertainment business operating revenues declined 5%, primarily due to a decline in movie segment revenues. This impact was largely offset by growth in subscription revenues due to new pricing as well as increased monetization of the game portfolio.

other updates

Mukesh Ambani said his first new energy giga-factory is on track to start producing solar PV modules by the end of this year.

“With a wide range of renewable solutions including solar, energy storage systems, green hydrogen, bio-energy and wind, the new energy business is poised to become a significant contributor to the global clean energy transition,” he said.

On Monday, RIL shares closed at Rs 2,745.5 on NSE with a slight gain.

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