RIL Q3 results: Net profit rises 11% to Rs 19,641 cr; margin expands 210 bps

Mukesh Ambani-led Reliance Industries Ltd (RIL) on Friday reported a 11 per cent year-on-year (YoY) rise in net profit at Rs 19,641 crore for the December quarter as compared with Rs 17,706 crore in the same quarter a year ago.

Gross revenue for the quarter grew 3.2 per cent to Rs 2,48,160 crore as against Rs 2,40,532 crore in the year-ago period. RIL said it restated figures for the year-ago period to reflect demerger of financial services business.

Ebitda for the quarter came in at Rs 44,678 crore, up 16.7 per cent YoY, with Ebitda margin at 18 per cent, up 210 basis points YoY.

Reliance Industries said its O2C Ebitda was weak because of planned maintenance and inspection shutdown. Reliance Industries said its Revenue for JPL increased 11.4 per cent YoY, led by robust subscriber growth across mobility and homes, and benefit of mix improvement in ARPU.

Revenue for Reliance Retail grew 22.8 per cent YoY with strong growth across all consumption baskets. Grocery reported 41 per cent growth, followed by Fashion & Lifestyle (28 per cent) and Consumer Electronics (19 per cent). O2C revenue declined 2.4 per cent, primarily on account of lower price realisation led by 5.3 per cent Yo-Y decline in average brent crude oil prices. Revenue from Oil & Gas segment jumped significantly mainly on account of higher volumes partly offset by lower gas price realisation from KG D6 field.

RIL said its key Ebitda growth contributors included a 11.5 per cent YoY increase in JPL Ebitda with higher revenue and increase in margins. The oil-to-telecom major said Reliance Retail recorded 31.1 per cent increase in Ebitda led by record footfalls amid festive season. Ebitda margin for the Mulesh AMbani-led company improved 50 basis points to 8.4 per cent, thanks to operating leverage and continued focus on cost management initiatives.

"Sustained performance in the O2C segment with higher gasoline cracks and advantageous feedstock sourcing. This was partially offset by lower downstream chemical margins and planned maintenance and inspection shutdown. Planned maintenance and inspection shutdown of CDU, FCCU, Delayed Coking and ROGC complex impacted yields and profitability. O2C Ebitda would have been higher on YoY and comparable on QoQ basis if all major units were available during the quarter. Oil and Gas segment Ebitda increased sharply by 49.6 per cent, led by 72.6 per cent higher gas and condensate production from KG D6 block," it said.

Chairman and Managing Director Mukesh Ambani said Reliance delivered another quarter of robust operating and financial performance, with Jio completing the fastest rollout of True 5G services in India.

"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," he said.

"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.

Besides, the New Energy Giga Complex is all set to be commissioned in the second half of 2024, Ambani said.

"I am confident that Reliance’s New Energy business will play a pivotal role in the global movement for adoption of cleaner fuels,” he added.

On Friday, RIL's scrip on BSE closed trading nearly flat at Rs 2,736.45.

In the case of Reliance Jio, ARPU came in at Rs 181.70. Analysts were largely expecting ARPU at Rs 183. Jio said its subscriber base rose to 47.09 crore in Q3 from 45.97 crore in the Q2.

Meanwhile, RIL said global oil demand rose 1.7 million barrels per day YoY to 102 million barrels per day due to higher demand mainly from America and Asia. Jet/Kero and Gasoline each posted strong demand growth YoY at 1 million barrel per day while diesel demand declined 0.2 million barrels per day .

"Dated Brent averaged $84 per barrel, down $4.7 million per barrel. Crude oil benchmarks declined YoY due to concerns of global economic slowdown and seasonal lower demand. Crude supply remained adequate despite headline production cuts by OPEC+ countries. Global refinery crude throughput was higher by 0.5 mb/d Y-o-Y while it declined by 1.7 mb/d QoQ to 81.7 mb/d in 3Q FY24," it said.