RIL Q3 results: Net profit rises 7.4% to Rs 18,540 crore; key highlights

The Mukesh Ambani-led Reliance Industries Ltd (RIL) on Thursday said its December quarter consolidated net profit (attributable to owners) grew 7.38 per cent year-on-year (YoY) to Rs 18,540 crore compared with Rs 17,265 crore in the same quarter last year. The consolidated revenue for the oil-to-telecom major grew 6.97 per cent YoY to Rs 2,43,865 crore for the third quarter compared with Rs 2,27,970 crore in the corresponding quarter last year.

Consolidated Ebitda for the quarter came in at Rs 48,003 crore, up 7.8 per cent over Rs 44,525 crore in the same quarter last year. Ebitda margin stood at 18 per cent against 17 per cent in September and 17.9 per cent in the year-ago quarter.

RIL said it had an outstanding debt of Rs 3,50,453 crore and cash and cash equivalents of Rs 2,34,988 crore at the end of December quarter. Its net debt stood at Rs 1,15,465 crore, lower than 116,438 crore in September and Rs 1,19,372 crore in the year-ago quarter. Net Debt to Ebitda improved to 0.6 from 0.66 in September and 0.67 in the year-ago quarter.

Jio Platforms
RIL said Jio Platforms reported a gross revenue of Rs 38,750 crore for the quarter, up 19.2 per cent YoY. Ebitda for the quarter stood at Rs 16,585 crore, up 18.8 per cent YoY. Total subscriber for Jio stood at 48.2 crore as of December 31, 2024, up 2.4 per cent YoY. PAT for the business rose 26 per cent YoY to Rs 6,861 crore from Rs 5,447 crore.

The average revenue per user improved to Rs 203.30. RIL said the remaining impact of tariff hike is still to play out. RIL said it was a record quarter for home connects with 20 lakh new connections in Q3. Jio Air Biner has a subscriber base of 45 lakh now. Jio, RIL said, continues to be the world's leading standalone 5G operator outside China with subscriber base of over 17 crore.

Reliance Retail Ventures
RIL said the quarterly revenue for Reliance retail stood at Rs 90,333 crore, up 8.8 per cent YoY. Ebitda for the quarter came in at Rs 6,828 crore, up 9.5 per cent YoY. Total footfall for the quarter stood at 29.6 crore across formats. The retailer opened 779 new stores during teh quarter. PAT for this business rose 10 per cent YoY to Rs 3,458 crore from Rs 2,836 crore.

O2C segment

The segment revenue rose 6 per cent YoY to Rs 149,595 crore ($ 17.5 billion), primarily on account of higher production meant for sale as compared to 3Q FY24 which had planned maintenance and inspection shutdown of major units. Revenue growth was also supported by robust domestic demand and product placement. Domestic fuel retailing volume increased significantly with 43.7 per cent growth in MS and 22.8 per cent growth in HSD. Segment Ebitda rose 2.4 per cent YoY to Rs 14,402 crore ($ 1.7 billion) following a strong volume-led growth and higher polymer deltas. RIL’s feedstock flexibility, benefits of ethane cracking over naphtha and focus on yield optimization helped offset the impact of unfavorable fuel cracks.

Exploration & gas segment

RIL said the segment's revenue fell 5.2 per cent YoY, mainly on account of lower volume of gas and condensate in KGD6, lower realisation for CBM Gas and Condensate. This was partly offset by increase in CBM gas volumes and marginal increase in the KGD6 gas price. The average price realized for KGD6 gas was $ 9.74/mmBtu against $ 9.66per mmBtu YoY.

The average price realised for CBM gas was $ 10.58 permmBtu in Q3 against $15.55 per mmBtu YoY. Ebitda for the segment was down 4.1 per cent at Rs 5,565 crore on YoY basis, tracking lower revenues.

What Mukesh Ambani says

Chairman and Managing Director Mukesh Ambani said: “The delivery of record Ebitda and PAT at a consolidated level for this quarter is a testament to this. Robust growth in digital services business was led by sustained subscriber addition and consistent improvement in customer engagement metrics."

Ambani said this was well-supported by a favorable subscriber mix, with an increasing number of users upgrading to 5G networks.

"Jio’s compelling offering of home broadband services also continued to rapidly gain ground and maintain its pre-eminent market position. It gives me immense joy to see Jio grow and support the expanding technology capabilities of new India. Teams at Jio continue to enhance its offerings, in line with the constantly evolving technology landscape," he said.

Ambani said the Retail segment delivered a strong performance, with noteworthy contribution from all formats.

"The business ably capitalized on the pick-up in consumption amid festive demand during the quarter. A superior understanding of customer needs and preferences enables Reliance Retail to serve a wide variety of demographic profiles with the right product, at the right time, through the right channel," he said.

The O2C business showcased its innate resilience, registering growth even in this prolonged period of volatility in the global energy markets, Ambani said.

"Refining margins recovered sequentially, with petrochemical deltas exhibiting a mixed trend. Upstream segment continues to play a pivotal role in providing the crucial transition fuel bolstering India’s energy security," he said.

RIL share price movement
Earlier in the day, the Reliance stock closed at Rs 1,268.70 on BSE, up 1.31 per cent. The RIL stock has fallen 19.11 per cent in the past six months. Analyst ratings and target prices are awaited.

Bernstein recently said it finds the risk-reward attractive on the counter as it suggested a target price of Rs 1,520 on the counter. CLSA recently maintained its 'Outperform' rating on the scrip with a target price of Rs 1,650. Jefferies also retained its 'Buy' call and set a target price of Rs 1,690. Morgan Stanley sees the RIL stock at Rs 1,662.

(More to come)