RIL Q2 results: Net profit rises 27% to Rs 17,394 cr

Mukesh Ambani-led Reliance Industries Ltd on Friday reported 27% jump in consolidated net profit (attributable to owners of the company) at Rs 17,394 crore for the quarter ending September 30, 2023, boosted by strength in its mainstay oil-to-chemicals (O2C) business. It reported consolidated net profit of Rs 13,656 crore in the year-ago period. The company posted lower margins following a fall in refined fuel prices.

Consolidated revenue of the oil-to-telecom conglomerate rose 1% to Rs 2.34 lakh crore in Q2FY24 as against Rs 2.32 lakh crore in Q2FY23. 

On Friday, RIL's scrip on BSE closed 1.8% higher at Rs 2,266.15.

"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. 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 RIL Chairman Mukesh Ambani.

Reliance's quarterly EBITDA stood at Rs 44,867 crore, up 30% on an annual basis.

The conglomerate's net debt declined to Rs 2.95 lakh crore in Q2FY24 as compared to Rs 3.18 lakh crore in Q1FY24. Its cash and cash equivalents in Q2FY24 stood at Rs 1.77 lakh crore, which includes Rs 10,347-crore capital raise in Reliance Retail.

Capital expenditure for the quarter ended September 30, 2023 was Rs 38,815 crore with continuing accelerated investments in pan-India 5G roll-out, said RIL in a stock exchange filing.

"O2C EBITDA for the quarter at Rs 16,281 crore ($2.0 billion), higher by 36% YoY, with strength in gasoline and PVC margins, optimized feedstock sourcing and lower SAED in-line with decline in middle-distillate cracks. Downstream contribution remained weak with lower PE, PP and polyester chain deltas.

"Reliance's Oil & Gas segment quarterly revenues jumped 71.8% to Rs 6,620 crore mainly on account of higher production of Gas & Oil and commencement of Condensate production from MJ field along with 6% higher gas price realization in KG D6," said RIL.

Reliance Jio

Reliance Jio Infocomm, the telecom unit of Reliance Industries, posted only 4% sequential rise in net profit due to higher expenses and the absence of tariff increases.

Jio's net profit rose 4% to Rs 5,058 crore in the July-September quarter from Rs 4,863 crore in June quarter. 

Revenue rose 3% to Rs 24,750 crore in Q2FY24 as against Rs 24,042 in Q1FY24. Jio's average revenue per user (ARPU) rose to Rs 181.7 in Q2FY24 as compared to Rs 180.5 a quarter ago.

Akash Ambani, Chairman of Reliance Jio Infocomm, said: “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.”

Reliance Retail

Reliance Retail's net profit rose 21% to Rs 2,790 crore in Q2FY24 as against Rs 2,305 crore in the year-ago period. 

Its revenue from operations rose 19.5% to Rs 68,937 crore in Q2FY24 as compared to Rs 57,694 crore in Q2FY23.

Isha Ambani, Executive Director, Reliance Retail Ventures Limited, 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."

Mukesh Ambani 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 offering. We are providing a fresh and friendly shopping experience across our seamless ecosystem. The strength and diversity of our Retail business model is consistently delivering robust performance."