Mukesh Ambani-led Reliance Industries has reported a significant 11% year-on-year increase in its net profit for the third quarter of the fiscal year 2023-24, reaching Rs 19,641 crore.
The growth is attributed to the strong performance across its diverse business sectors, including retail, digital services, and oil & gas. The company's consolidated revenues also saw a rise, reaching Rs 248,160 crore, marking a 3.2% increase from the previous year.
Breakdown of business segments
- Jio Platforms: Jio Platforms reported an 11.6% growth in net profit, amounting to Rs 5,445 crore. The revenue for this segment hit a record Rs 32,510 crore, a 11.4% increase from the previous year. The average revenue per user (ARPU) also rose to Rs 181.7.
- Reliance Retail: The retail arm reported a record quarterly revenue of Rs 83,063 crore, a 22.8% increase, driven by growth in grocery, fashion, lifestyle, and consumer electronics.
- Oil & Gas: This segment saw a substantial 50.2% growth in revenue at Rs 6,719 crore, primarily due to higher volumes, although partially offset by lower price realisation from the KG D6 Field.
Operational highlights and challenges
The company's EBITDA (earnings before interest, tax, depreciation, and amortisation) for the quarter stood at Rs 44,678 crore, up by 16.7% year-on-year.
The growth was driven by a 31.1% increase in Reliance Retail Ventures and a 49.6% jump in the oil & gas business. However, the O2C EBITDA was impacted by planned maintenance and inspection shutdowns.
"The strong uptake of the JioBharat phone and JioAirFiber services has resulted in continued expansion of Jio’s subscriber base, contributing to the stellar growth numbers of the digital services business. 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," said Mukesh Ambani.
"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. 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," he said.
Looking ahead, RIL is set to commission its New Energy Giga Complex in the second half of 2024, marking a significant step towards cleaner energy solutions.
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