Reliance Industries Ltd (RIL) has reported an unprecedented net profit of Rs 21,930 crore ($2.6 billion) for the third quarter of the fiscal year 2024-25, marking an 11.7% increase compared to the previous year. This robust growth can largely be attributed to strong performances in its retail and telecommunications divisions, which effectively counterbalanced the fluctuations in its oil-to-chemicals (O2C) sector.
Highlights
Financial Highlights
- Consolidated revenue rose by 7.7% to Rs 2,67,186 crore ($31.2 billion).
- EBITDA reached a historic high of Rs 48,003 crore ($5.6 billion), representing a 7.8% increase year-on-year.
Telecommunications Segment
Reliance Jio Platforms Ltd., the telecom and digital services subsidiary, recorded a net profit of Rs 6,857 crore, reflecting a remarkable 25.9% growth from the previous year. The revenue for this segment surged by 19.2% to Rs 38,750 crore, driven by:
- Increased subscriber additions.
- A rising average revenue per user (ARPU), now at Rs 203.3.
Jio’s True5G network continues to expand, serving over 170 million subscribers and solidifying its claim as the largest standalone 5G operator globally, outside of China.
Retail Performance
Reliance Retail Ventures Ltd. (RRVL) also experienced significant growth, with net profit increasing by 10.1% to Rs 3,485 crore. Revenue saw an 8.8% rise to Rs 90,333 crore, fuelled by strong demand during the festive season and strategic store expansions. Key metrics include:
- Opening of 779 new stores during the quarter, raising the total to 19,102 outlets.
- Total footfalls reached 296 million.
- Digital and new commerce channels accounted for 18% of total revenue.
Oil-to-Chemicals Business
The O2C segment, a vital source of revenue, demonstrated a modest 6% year-over-year revenue growth, amounting to Rs 149,595 crore, aided by increased volumes and growing domestic fuel sales. However, EBITDA growth was relatively flat at 2.4%, reflecting weaker refining margins. The crude throughput at the Jamnagar refinery increased by 8% year-over-year, reaching 20.2 million metric tons, as the company effectively managed feedstock sourcing amidst fluctuating global oil prices.
Management Insights
The Chairman and Managing Director of Reliance Industries noted that the achievement of record EBITDA and profit after tax (PAT) at a consolidated level for this quarter underscores the inherent strength and resilience of the company’s various enterprises.
Financial Strength
With a net debt-to-EBITDA ratio of 0.60, RIL maintains a robust financial standing. The company’s capital expenditure for the quarter was recorded at Rs 32,259 crore, with substantial investments directed towards digital expansion, retail growth, and green energy initiatives.