RIL Q2 Results: Reliance Industries Ltd (RIL) on October 27 reported a consolidated net profit of Rs 19,878 crore in the second quarter of financial year 2023-24, an increase of 29.7 percent from a year ago, despite a dip in revenue from its oil-to-chemicals business.
Gross revenue from operations of India’s most valued company stood at Rs 2.55 lakh crore in the quarter ended September 30, compared to Rs 2.52 lakh crore last year.
Net profit attributable to the owners of the company (profit after tax and minority interests) came in at Rs 17,394 crore in the quarter, compared to Rs 13,656 crore in the same period last year.
EBITDA (earnings before interest, taxes, depreciation, and amortisation) increased by 30.2 percent to Rs 44,867 crore in Q2FY24.
According to a Moneycontrol survey of 10 brokerages, the market expected RIL’s consolidated net sales to come in at Rs 2.31 lakh crore in Q2 FY24, up 0.5 percent year-on-year, and 11 percent quarter on quarter.
Moneycontrol’s survey estimated net profit at Rs 17,482 crore, up 27.2 percent year on year. RIL’s second quarter EBITDA was expected to come in at Rs 39,696 crore, up 28 percent year on year and 9.2 percent quarter on quarter.
“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,” Chairman Mukesh Ambani said in a press statement.
RIL’s other businesses, including its upstream division, reported a robust quarter.
“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,” said Ambani.
O2C (oil-to-chemicals) business
Revenue for Reliance’s O2C business, its biggest business, stood at Rs 1.47 lakh crore, a 7.3 percent decline, primarily on account of a sharp 14 percent reduction in crude oil prices, resulting in lower price realisation for products.
EBITDA for the quarter stood at Rs 16,281 crore, increasing 36 percent from the year ago period, on account of strength in gasoline and PVC margins, optimised feedstock sourcing and lower SAED in-line with decline in middle-distillate cracks.
The company’s O2C business includes refining, petrochemicals, and fuel retailing through Reliance BP Mobility Limited, aviation fuel and bulk wholesale marketing.
Oil & Gas business
The company’s oil and gas revenue, representing its upstream operations, increased 71.8 percent in the quarter, driven by higher production of gas & oil and commencement of condensate production from MJ field along with 6 percent higher gas price realization in KG D6.
The average price realised for KGD6 gas is $ 10.46 per MMBTU (million metric British thermal unit) in Q2FY24 compared to $9.86 per MMBTU in Q2FY23. The average price realised for CBM gas was $ 13.72/MMBTU in 2Q FY24, as against $23.34 per MMBTU in Q2FY23.
The segment’s EBITDA increased to Rs 4,766 crore, which is up by 50.3 percent on yearly basis.
Reliance said that the drilling & completion campaign for MJ wells has been completed successfully. All eight wells are now completed, connected, and are producing, the company said.
“With incremental gas production from MJ field, along with ongoing production from R Cluster and Satellite Cluster fields, Block KG D6 is currently producing ~29 MMSCMD,” the company said in a press release.
Jio Platforms
Jio Platforms’ profit for the second quarter stood at Rs 5,297 crore, an increase of 12 percent.
The telecom and streaming business segment’s revenue from operations stood at Rs 31,537 crore in the quarter, compared to Rs 28,506 crore in the same period last year.
Average revenue per user (ARPU), an important metric to measure the performance of telecom companies, improved 2.5 percent YoY to Rs 181.7 per user, per month. Quarter on quarter it improved by 20 paise per user.
“Jio True5G will soon be available pan-India to usher in a new digital era for Indians. JioAirFiber has seen very strong customer interest and is set to transform broadband infrastructure in the country by offering fiber like digital experience to homes and small enterprises. Ubiquitous 5G, JioBharat and JioAirFiber are three big growth engines for Jio which would accelerate market share gains and profitability,” said Akash Ambani, Chairman of Reliance Jio Infocomm.
Retail business
Reliance Retail posted a net profit of Rs 2,790 crore in the quarter, an increase of 21 percent. Revenue from operations for the quarter stood at Rs 77,148 crore, a growth of 18.8 percent Y-o-Y.
Store footfalls were at 260 million in the quarter, compared to 249 million in the previous quarter.
Grocery and fashion & lifestyle businesses maintained strong growth momentum while consumer electronics had a steady performance despite festive period falling in Q3FY24, the company said in a press release.
Reliance Retail expanded its store network with 471 new store openings taking the total store count at the end of the quarter to 18,650 stores with an area of 71.5 million square feet.
Isha Ambani, Executive Director, Reliance Retail Ventures Limited (RRVL), said, “I am delighted to report that 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.”
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