RIL Q2 FY25 results: Profit slips 5% to Rs 16,563 crore; total income up 1%

Reliance Industries Ltd (RIL) on Monday recorded a 4.78 per cent drop in its consolidated net profit during the second quarter of the ongoing financial year 2024-25 (Q2 FY25). During the quarter under review, the company's net profit came at Rs 16,563 crore as against Rs 17,394 crore in the year-ago period.

RIL's total income rose 0.65 per cent to Rs 2,40,357 crore from Rs 2,38,797 crore in the corresponding quarter last year.

The Mukesh-Ambani led firm said its gross revenue remained stable year-on-year (YoY) at Rs 2,58,027 crore ($30.8 billion).

"Reliance once again demonstrated the resilience of its diversified business portfolio. Our performance reflects robust growth in Digital Services and Upstream business. This helped partially offset weak contribution from O2C business which was impacted by unfavorable global demand-supply dynamics," Ambani said.

Unfavourable demand-supply balance led to sharp 50 per cent decline in transportation fuel cracks and continued weakness in downstream chemical deltas, RIL stated in a release.

"Oil-to-chemicals (O2C) revenue improved with higher volumes and increased domestic placement of products. Digital services revenue increased with the impact of revised telecom tariffs for mobility services and scale-up of homes and digital services businesses. Lower gas price realizations led to 6% lower revenue in the oil and gas segment," it also said.

EBITDA

EBITDA (earnings before interest, taxes, depreciation, and amortisation) decreased by 2 per cent YoY to Rs 43,934 crore ($5.2 billion). "EBITDA for Jio Platforms Ltd increased 17.8 per cent YoY due to better subscriber mix, digital services scale-up and revision in telecom tariffs," it also said.

"EBITDA margin for Reliance Retail Ventures Ltd improved by 30 basis points (bps) with continued focus on streamlining of operations and calibrated approach in B2B. O2C EBITDA was lower by 23.7 per cent on account of sharp decline in product margins. Fuel cracks declined by nearly 50 per cent YoY. Downstream chemical also declined with muted global demand in a well-supplied market. RIL benefited due to superior ethane cracking economics driven by sharp fall in ethane prices. Oil and gas segment EBITDA increased by 11 per cent on account of sustained volume growth and one time provisioning towards decommissioning cost for Tapti field in Q2 FY24," RIL added.

The company's depreciation and finance costs increased by 2.3 per cent and 5 per cent (YoY), respectively.

Capex

The company's capital expenditure (capex) for the quarter ended September 30, 2024, came at Rs 34,022 crore ($4.1 billion).

Jio Platforms

Jio's total subscriber base rose 4.2 per cent YoY to 47.9 crore. Average revenue per unit (ARPU) moved 7.4 per cent up YoY to Rs 195.1.

The telecom operator said it further strengthened the leadership in 5G with 14.8 crore subscribers transitioning to 5G. Per capita data consumption increased to 31 GB per month with higher mix of 5G and home users.

Jio Platforms reported a 23.4 per cent jump in its Q2 FY25 profit while Reliance Retail Ventures' PAT fell 1.3 per cent.