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Reliance posted Net Profit of Rs.18,951 crore in Q4


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On Monday, April 22, 2024, Reliance Industries Ltd (RIL), led by Mukesh Ambani, announced a 1.80% year-on-year (YoY) decline in consolidated net profit for the March quarter. The net profit attributable to owners of the company stood at Rs 18,951 crore, compared to Rs 19,299 crore in the same quarter last year. Analysts had expected a 5-10% decline in profit, so the result was slightly better than anticipated.

RIL’s consolidated revenue from operations in the quarter increased by 11.3% YoY to Rs 2,40,715 crore, compared to Rs 2,16,265 crore in the same quarter last year. Analysts had predicted a double-digit growth in sales.

EBITDA and Net Debt

The earnings before interest, taxes, depreciation, and amortization (EBITDA) for the quarter rose by 14.3% YoY to Rs 47,150 crore, compared to Rs 44,678 crore YoY. The EBITDA margin also improved by 50 basis points to 17.8% from 17.3% in the year-ago quarter.

Net debt for the quarter decreased to Rs 1,16,281 crore from Rs 1,19,372 crore in the previous quarter and Rs 1,25,766 crore in the same quarter last year.

Dividend and Stock Performance

The RIL board declared a dividend of Rs 10 per share for the financial year 2023-24. The date for the Annual General Meeting and the payment date for the dividend will be announced in due course.

Ahead of the earnings announcement, RIL shares settled at Rs 2,960.60, up 0.65% for the day. So far in 2024, the stock has shown a positive growth of 14.32%.

Segment Performance and Achievements

RIL highlighted the strong contribution from its key businesses in boosting EBITDA. Jio Platforms Ltd (JPL) saw a 12.5% YoY increase in EBITDA, driven by sustained subscriber additions. Reliance Retail Ventures Ltd (RRVL) reported an 18.5% rise in EBITDA, supported by business efficiencies and margin expansion.

In the Oil and Gas segment, EBITDA increased sharply by 47.5% due to higher gas and condensate production from the KG D6 block.

Mukesh Ambani, the Chairman and Managing Director of RIL, emphasized that initiatives across RIL’s businesses have significantly contributed to the growth of various sectors of the Indian economy. He expressed satisfaction with the robust financial and operating performance of all RIL segments, which have helped the company achieve multiple milestones.

Ambani proudly stated that Reliance Industries has become the first Indian company to cross the Rs 100,000-crore threshold in pre-tax profits.

Digital Services and Retail

Ambani highlighted the strong performance of the digital services segment, driven by the accelerated expansion of the subscriber base for mobility and fixed wireless services. Jio, with over 108 million True 5G customers, is leading the 5G transformation in India. Ambani also mentioned Jio’s contribution to upgrading users from 2G to smartphones and producing AI-driven solutions.

Reliance Retail continued to provide customers with a wide range of choices through its omni-channel presence. Ambani mentioned the efforts to offer product differentiation, superior offline experiences through store remodeling, and revamping layouts. He also highlighted the digital commerce platforms that provide new solutions and a broad brand catalog. Reliance Retail is actively working to strengthen millions of merchants through its initiatives in the new commerce space.

O2C Segment and New Energy Initiatives

The O2C (Oil-to-Chemicals) segment benefited from strong global fuel demand and limited flexibility in the refining system worldwide, resulting in favorable margins and profitability. The downstream chemical industry faced challenging market conditions throughout the year, but RIL managed to maintain leading product positions and feedstock flexibility through its cost management approach.

Ambani mentioned that the KG-D6 block has achieved 30 MMSCMD (million metric standard cubic meters per day) of gas and condensate production, accounting for 30% of India’s domestic gas production.

Ambani concluded by reaffirming RIL’s commitment to projects and initiatives in the New Energy segment. These efforts aim to strengthen the company and ensure sustainable growth in the future.

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