Reliance Industries Q1 Results: Revenue stands at Rs 2.07 lakh crore

Mumbai: Mukesh Ambani-led Reliance Industries Limited announced its results for the April to June quarter. Revenue from operations stands at Rs 2.07 lakh crore vs Rs 2.2 lakh crore in the year-ago period. However, the YoY profit slipped to Rs 16,011 crore compared to Rs 17,955 crore in the same quarter last fiscal.

Quarterly Performance (1Q FY24 vs 1Q FY23)

~ Gross Revenue was ₹ 231,132 crore ($ 28.2 billion), down 4.7% Y-o-Y, due to sharp decline in O2C revenues with 31% fall in crude oil prices. However, this is partially offset by continued growth in consumer businesses and increase in volumes from O2C and Oil & Gas business.

~ EBITDA increased by 5.1% Y-o-Y to ₹ 41,982 crore ($ 5.1 billion). EBITDA growth was led by consumer and upstream businesses, which offset decline in O2C earnings. O2C earnings were lower due to a sharp fall in fuel cracks from exceptionally high levels in 1Q FY23. Higher subscriber base and customer engagement led revenue and profitability growth for Digital Services. Retail earnings reflect expanded footprint and improved profitability with operating leverage. Higher production and realizations contributed to growth in Oil & Gas EBITDA.

~ Depreciation increased by 31.7% Y-o-Y to ₹ 11,775 crore ($ 1.4 billion) due to expanded asset base across all the businesses and higher network utilization in Digital Services business.

~ Finance costs increased by 46.0% Y-o-Y to ₹ 5,837 crore ($ 711 million) primarily due to higher interest rates and loan balances.

~ Tax Expenses of ₹ 6,112 crore ($ 745 million) in 1Q FY24 were lower on account of lower deferred tax in 1Q FY24. • Profit for the period declined by 5.9% Y-o-Y at ₹ 18,258 crore ($ 2.2 billion) on account of higher finance cost and increased depreciation.

~ The Capital Expenditure for the quarter ended June 30, 2023 was ₹ 39,645 crore ($ 4.8 billion).

Commenting on the results, Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries Limited said: “Reliance’s strong operating and financial performance this quarter demonstrates the resilience of our diversified portfolio of businesses that cater to demand across industrial and consumer segments.

Jio’s wide range of quality offerings at affordable price points has enabled strong growth in subscriber base, which reflects in the financial performance of the digital services business. Accelerated roll-out of Jio’s True 5G services is propelling the nation’s digital transformation at an unprecedented pace. In another step towards democratizing internet in India, Jio launched the “JioBharat” Phone Platform, making internet technology accessible and affordable to every Indian.

Retail business delivered robust growth, with fast-paced store additions and steady growth in footfalls. The contribution of Digital and New Commerce initiatives is scaling up, delivering value to consumers and providing synergistic benefits to merchant partners.

O2C business delivered a resilient performance despite continuing global macro headwinds. Commencement of MJ field operations during the quarter will enhance India’s energy security, with total production from KGD6 block rising to ~30 MMSCMD in the coming months.

The process of demerger of the financial services business – Jio Financial Services Limited – is on track with key approvals in place. I firmly believe that Jio Financial Services is uniquely positioned to foster financial inclusion in India.” DeshGujarat