Reliance Industries Q3 Results: PAT Rises 9.3% YoY At Rs 17,265 Crore; O2C Segment Hurts Again

India's largest company in terms of market capitalization and Index heavyweight Reliance Industries Limited (RIL) has released its December quarter earnings today. In its Q3FY24 results, the company said that its consolidated revenues rose 3.2% YoY at Rs 248,160 crore, boosted by continued growth momentum in consumer businesses.

The Mukesh Ambani-led energy-to-telecom conglomerate reported a 9.3% year-on-year (YoY) growth in consolidated net profit for the quarter ended December to Rs 17,265 crore. Net profit for the Mukesh Ambani-led conglomerate fell 0.74% sequentially to Rs 17,265 crore for the October-December period.

Reliance Retail delivered a Gross Revenue of Rs 83,063 crore for 3Q FY24, a growth of 22.8% YoY. This growth was driven by the Grocery, Fashion & Lifestyle, and Consumer Electronics businesses.

RIL's quarterly EBITDA stood at Rs 44,678 crore, up 16.7% Y-o-Y, with growth across all businesses. Revenue from operations fell 2.98% to Rs 2.28 lakh crore, as compared with Rs 2.31 lakh crore.

In its second-quarter results, Reliance reported a 29.7% growth in profit and a marginal increase in revenues. The company clocked a 29.7% YoY rise in consolidated net profit to Rs 19,878 crore for the September 2023 quarter.

In the quarter ending December 31, 2023, except the O2C segment all other segments of the diversified conglomerate performed well. The company said that the planned maintenance and inspection shutdown of CDU, FCCU, Delayed Coking, and ROGC complex impacted yields and profitability in the O2C segment. It said, "O2C EBITDA would have been higher on Y-o-Y and comparable on Q-o-Q basis if all major units were available during the quarter."

A Look at Reliances' Consolidated Results

• Consolidated revenues at Rs 248,160 crore ($29.8 billion), up 3.2% YoY, supported by continued growth momentum in consumer businesses
• Reliance's quarterly EBITDA stood at Rs 44,678 crore ($5.4 billion), up 16.7% Y-o-Y, with growth across all businesses
• Reliance's consolidated Profit after Tax was at Rs 19,641 crore ($2.4 billion), up 10.9% YoY, despite higher finance, depreciation, and tax costs
• Capital Expenditure for the Dec '23 quarter stood at Rs 30,102 crore ($3.6 billion) with investments in pan-India 5G roll-out, expansion of retail infrastructure and new energy business.
• RIL's consolidated net debt stood at Rs 119,372 crore, which is only ~67% of the annualized EBITDA.

Commenting on the results, Mukesh D. Ambani, Chairman and Managing Director, of Reliance Industries Limited said, "I am happy to share that Jio has completed in India the fastest rollout of True 5G services anywhere in the world. Every city, town, and village in the country is now equipped with high-speed digital connectivity, which will usher in a new era of unparalleled digital accessibility and technology-led growth. The strong uptake of the JioBharat phone and JioAirFiber services has resulted in the continued expansion of Jio's subscriber base, contributing to the stellar growth numbers of the digital services business."

Akash M Ambani, Chairman of Reliance Jio Infocomm said, "Jio has accomplished the fastest rollout of 5G technology witnessed anywhere in the world and is now available across India. JioAirFiber has seen strong initial demand and customer engagement, especially in underserved tier 3/4 towns and rural areas. Jio's ahead of the curve investments on next-generation network, digital technologies and tailor-made products for all customer cohorts will ensure sustainable industry leading growth in coming years."

Key Highlights across all segments

• Quarterly consolidated EBITDA at Rs 44,678 crore ($5.4 billion), up 16.7% y-o-y
• YoY EBITDA growth across all business segments
• Quarterly EBITDA of oil & gas business at Rs 5,804 crore ($697 million), up 49.6% y-o-y
• Quarterly EBITDA of reliance retail at Rs 6,258 crore, up 31.1% y-o-y
• Quarterly EBITDA of jio platforms at Rs13,955 crore, up 11.5% y-o-y
• O2c EBITDA growth was muted because of planned maintenance and inspection shutdown.

Reliance Retail Ventures | Key Highlights

• Reliance Industries' retail arm Reliance Retail Ventures (RRL) posted 32% growth in its net profit at Rs 3,165 crore for the quarter that ended December 2023. The same stood at Rs 2,400 crore in the year-ago quarter.
• Revenue from operations in the reporting period rose 24% year-on-year to Rs 74,373 crore.
• Record quarterly revenue at Rs 83,063 crore, up 22.8% y-o-y
• Record quarterly ebitda at Rs 6,258 crore, up 31.1% y-o-y
• Total footfall crosses 282 million across formats; 252 new stores opened
• Reliance Retail's Net profit for the quarter was Rs 3,165 crore, up 31.9% Y-o-Y.

"The retail segment has also delivered an impressive financial performance with its rapidly expanding physical as well as digital footprint. Reliance Retail remains focused on enriching customer shopping experience by adding new brands and offerings to its portfolio. Its New Commerce initiatives continue to support the growth journey of millions of small merchants through technology, generating immense societal value," said Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries Limited.

Isha M. Ambani, Executive Director, Reliance Retail Ventures Limited said, "Reliance Retail has delivered steady performance during the festive quarter. Our business success is intricately woven into the larger fabric of India's economic growth, and together, we are shaping a compelling story of innovation and world class possibilities for the future. We remain resolute in our commitment to bring high quality products at great value to our customers with an engaging shopping experience".

Reliance O2C Segment Q3 performance:

• Reliance's O2C segment quarterly revenue fell 2.4% Y-o-Y to Rs 141,096 crore primarily on account of lower price realisation led by 5.3% Y-o-Y decline in average Brent crude oil prices
• O2C EBITDA for the quarter marginally increased by 1.0% Y-o-Y to Rs 14,064 crore ($1.7 billion) led by higher gasoline cracks and advantageous feedstock sourcing; this was partially offset by lower downstream chemical margins and planned maintenance and inspection shutdown
• Planned maintenance and inspection shutdown of CDU, FCCU, Delayed Coking and ROGC complex impacted yields and profitability. O2C EBITDA would have been higher on Y-o-Y and comparable on Q-o-Q basis, if all major units were available during the quarter.

"The O2C segment delivered resilient performance aided by operational flexibility and strong domestic demand. Staying true to its commitment to sustainability, Reliance has become the first Indian company to chemically recycle pyrolysis oil into circular polymers," said Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries Limited.

RIL's Oil & Gas Segment Q3FY24 performance:

• Reliance's Oil & Gas segment quarterly revenues jumped 50.2% to Rs 6,719 crore mainly on account of higher volumes partly offset by lower price realisation from KG D6 Field.
• Oil & Gas EBITDA rose to a record high Rs 5,804 crore, up 49.6% Y-o-Y
• Block KG D6 is currently producing ~30 MMSCMD gas and ~ 21,000 Bbl of Oil / Condensate.

"The Oil & Gas segment posted its highest ever quarterly EBITDA. I am happy to note that KG D6 is now contributing 30% of India's gas production, fueling its transition towards a greener and cleaner tomorrow," said Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries Limited.

Jio Platforms Q3 results:

• Jio Platforms' Gross Revenue for the quarter was at a record high of Rs 32,510 crore, up 11.4% Y-o-Y
• Jio Platforms' EBITDA for the quarter stood at Rs 13,955 crore, up 11.5% Y-o-Y
• Jio Platforms' Net Profit for the quarter was Rs 5,445 crore, up 11.6% Y-o-Y
• Customer engagement on Jio network remained strong, total data and voice traffic increased 31.5% to 38.1 billion GB, and 7.9% Y-o-Y to 1.37 trillion minutes, respectively
• Jio continued to outpace the competition with 11.2 million net additions in 3Q FY24 taking the subscriber base to 470.9 million
• Jio's ARPU increased 2.0% YoY to Rs 181.7 with better subscriber mix partially offset by unlimited data allowance on 5G network
• Jio has rolled out Jio True 5G network across India ahead of schedule. About 90 million subscribers have been migrated to Jio's 5G network. The Jio True 5G network now carries almost one-fourth of Jio's mobility data traffic and the entire 5G data is now carried on Jio's own 5G+4G combo core.