RIL profit declines by 4.77% in September quarter

Gross revenue of RIL rose marginally by 0.79 per cent to Rs 258,027 crore during the second quarter from Rs 255,996 crore a year ago.

Reliance Industries Ltd (RIL), India’s largest firm in terms of market capitalisation, has posted a 3.62 per cent decline in net profit at Rs 19,101 crore for the second quarter ended September 2024 as against Rs 19,820 crore in the same period a year ago. However, the net profit attributable to the owners of the company fell by 4.77 per cent to Rs 16,563 crore during the quarter as against Rs 17,394 crore in the same period last year.

Gross revenue of RIL rose marginally by 0.79 per cent to Rs 258,027 crore during the second quarter from Rs 255,996 crore a year ago.

RIL’s digital arm Jio Platforms reported a 17.7 per cent rise in gross revenue at Rs 37,119 crore during the second quarter as against Rs 31,537 crore last year and its net profit rose by 23.4 per cent to Rs 6,539 crore from Rs 5,299 crore a year ago.

However, retail arm Reliance Retail Ventures Ltd (RRVL) showed a marginal rise in profit to Rs 2,836 crore for the second quarter from Rs 2,800 crore in the same period of last year and the revenue declined to Rs 76,302 crore from Rs 77,148 crore.

Oil to chemicals (O2C) revenue improved with higher volumes and increased domestic placement of products. “Digital services revenue increased with the impact of revised telecom tariffs for mobility services and scale-up of homes and digital services businesses. Lower gas price realizations led to 6% lower revenue in the oil and gas segment,” RIL said.

RIL shares closed 0.11 per cent higher at Rs 2,745.20 on the exchanges on Monday. However, RIL share is down by 14.68 per cent from the 52-week high of Rs 3,217.90. RIL had declared a one-for-one bonus issue earlier this year.

RIL Chairman and MD Mukesh D. Ambani said, “our performance reflects robust growth in digital services and upstream business. This helped partially offset weak contribution from O2C business which was impacted by unfavourable global demand-supply dynamics.”

Oil-to-chemicals EBITDA (earnings before interest, tax, depreciation and amortisation) was lower by 23.7 per cent on account of sharp decline in product margins. Fuel cracks declined by nearly 50 per cent Y-o-Y. Downstream chemical also declined with muted global demand in a well-supplied market. RIL benefited due to superior ethane cracking economics driven by sharp fall in ethane prices, RIL said.

Growth in digital services was led by increased ARPU and improving customer engagement metrics reflecting the strong value proposition of our services, he said. “The home broadband segment is witnessing accelerated momentum on the back of our unique industry-leading JioAirFiber offering,” Ambani said.

On the retail business, Ambani said, “the retail segment continues to increase its consumer touchpoints and product offerings across physical and digital channels. The unique omni-channel retail model enables the business to service a wide range of requirements of a vast, heterogenous customer base.”

“The first of our New Energy Giga-factories is on-track to commence production of solar PV modules by the end of this year. With a comprehensive range of renewable solutions including solar, become a significant contributor to global clean energy transition,” Ambani said.

Oil and gas segment EBITDA increased by 11.0 per cent on account of sustained volume growth and one time provisioning towards decommissioning cost for Tapti field in Q2 FY 24, RIL said.

Reliance Industries Ltd (RIL), India’s largest firm in terms of market capitalisation, has posted a 3.62 per cent decline in net profit at Rs 19,101 crore for the second quarter ended September 2024 as against Rs 19,820 crore in the same period a year ago. However, the net profit attributable to the owners of the company fell by 4.77 per cent to Rs 16,563 crore during the quarter as against Rs 17,394 crore in the same period last year.

Gross revenue of RIL rose marginally by 0.79 per cent to Rs 258,027 crore during the second quarter from Rs 255,996 crore a year ago.

RIL’s digital arm Jio Platforms reported a 17.7 per cent rise in gross revenue at Rs 37,119 crore during the second quarter as against Rs 31,537 crore last year and its net profit rose by 23.4 per cent to Rs 6,539 crore from Rs 5,299 crore a year ago.

However, retail arm Reliance Retail Ventures Ltd (RRVL) showed a marginal rise in profit to Rs 2,836 crore for the second quarter from Rs 2,800 crore in the same period of last year and the revenue declined to Rs 76,302 crore from Rs 77,148 crore.

Oil to chemicals (O2C) revenue improved with higher volumes and increased domestic placement of products. “Digital services revenue increased with the impact of revised telecom tariffs for mobility services and scale-up of homes and digital services businesses. Lower gas price realizations led to 6% lower revenue in the oil and gas segment,” RIL said.

RIL shares closed 0.11 per cent higher at Rs 2,745.20 on the exchanges on Monday. However, RIL share is down by 14.68 per cent from the 52-week high of Rs 3,217.90. RIL had declared a one-for-one bonus issue earlier this year.

RIL Chairman and MD Mukesh D. Ambani said, “our performance reflects robust growth in digital services and upstream business. This helped partially offset weak contribution from O2C business which was impacted by unfavourable global demand-supply dynamics.”

Oil-to-chemicals EBITDA (earnings before interest, tax, depreciation and amortisation) was lower by 23.7 per cent on account of sharp decline in product margins. Fuel cracks declined by nearly 50 per cent Y-o-Y. Downstream chemical also declined with muted global demand in a well-supplied market. RIL benefited due to superior ethane cracking economics driven by sharp fall in ethane prices, RIL said.

Growth in digital services was led by increased ARPU and improving customer engagement metrics reflecting the strong value proposition of our services, he said. “The home broadband segment is witnessing accelerated momentum on the back of our unique industry-leading JioAirFiber offering,” Ambani said.

On the retail business, Ambani said, “the retail segment continues to increase its consumer touchpoints and product offerings across physical and digital channels. The unique omni-channel retail model enables the business to service a wide range of requirements of a vast, heterogenous customer base.”

“The first of our New Energy Giga-factories is on-track to commence production of solar PV modules by the end of this year. With a comprehensive range of renewable solutions including solar, become a significant contributor to global clean energy transition,” Ambani said.

Oil and gas segment EBITDA increased by 11.0 per cent on account of sustained volume growth and one time provisioning towards decommissioning cost for Tapti field in Q2 FY 24, RIL said.