Mukesh Ambani-led Reliance Industries (RIL), on Friday, reported a net profit of Rs 16,011 crore for the quarter ended June (Q1FY24). This was down nearly 11 per cent year-on-year (YoY) from Rs 17,955 crore, due to weak oil-to-chemical vertical and higher interest and depreciation cost.
In a regulatory filing, the company said, “Revenue from operations fell to Rs 2.1 trillion from Rs 2.22 trillion in the year-ago period and Rs 2.16 trillion in January-March 2023.
Reliance Industries announced dividend of Rs 9 per share.
On Friday, Reliance Industries fell 3.19% to Rs 2536.20 apiece on the BSE. The benchmark Sensex ended 1.31% lower at 66,684.26 points.
“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,” said Mukesh Ambani, chairman and managing director, Reliance Industries Limited.
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 democratising internet in India, Jio launched the “JioBharat” Phone Platform, making internet technology accessible and affordable to every Indian, he added.
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, he said.
Finance cost jumped 46 per cent to Rs 5,837 crore due to higher interest rates and loan balance. Depreciation/amortisation expenses were up 31.7 per cent to Rs 11,775 crore due to expanded asset base across all businesses and higher network utilisation in the digital services business.
Operationally, the company posted a 5 per cent growth in EBITDA or earnings before tax, at Rs 41,982 crore.
The mainstay oil refining and petrochemicals business, called O2C, posted a 23.2 per cent fall in EBITDA to Rs 15,271 crore.
Rising demand, low inventories and oil market disruption centred around Russia’s invasion of Ukraine pushed cracks — the differential between a barrel of crude oil (raw material) and the petroleum products refined from it — to record last year.
Diesel cracks in June last year soared to $74.95 a barrel while petrol cracks neared $42. Jet fuel cracks soared to $62. Diesel cracks in June this year hovered between $16 and $19 while petrol cracks were in the range of $10 to $14.
“Demand was impacted by destocking on recessionary fears and high-interest rates, as well as slower than expected ramp-up in China markets,” the statement said adding exports fell 28 per cent.
With the consumer base swelling to 448.5 million from 439.3 million at the end of March and ARPU rising to Rs 180.5 from Rs 178.8, Reliance Jio Infocomm Ltd – the digital services business – posted a 12.5 per cent rise in net profit to Rs 5,098 crore in Q1. Also aiding the business was consumers migrating to its latest offering 5G services and IPL streaming bringing in bumper advertisement revenue.
Profits from retail business climbed 19 per cent to Rs 2,448 crore as store count rose to 18,446 from 18,040.
Oil and gas EBITDA soared 27 per cent to Rs 4,015 crore as gas production from KG-D6 block rose on hooking to the production of the deepest field.
“Block KG D6 is currently producing around 27 million standard cubic meters per day (up from 19 mmscmd in the previous quarter) and is expected to reach 30 mmscmd in coming months,” it said.
The company said its net debt stood at Rs 1.26 trillion.
Reliance Jio Q1 net profit rises 12% to Rs 4,863 crore
Reliance Jio Infocomm, on Friday, posted a 12.2 per cent jump in first-quarter profit.
In a regulatory filing, the company attributed this to an addition in the number of subscribers. Reliance Jio said net profit jumped to Rs 4,863 crore in the April-June quarter, from Rs 4,335 crore a year ago.
Reliance Jio’s total income during the first quarter rose to Rs 24,127 crore from Rs 21,995 crore a year ago.
The company’s revenue from operations rose by 9.9 per cent to Rs 24,042 crore during the reported quarter from Rs 21,873 crore in the June 2022 quarter.
Jio has been investing heavily in network infrastructure to grab a bigger market share.
(With agency inputs)
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