|
Consolidated net sales (including other
operating income) of Reliance Industries has increased 11.67% to Rs 231784
crore led by O2C on higher oil & product prices and Oil & Gas segment
with strong growth in volumes. Steady growth in consumer businesses also
contributed to increase in revenue. Sales of Others segment fell 32.24% to Rs
12,080.00 crore (accounting for 4.22% of total sales). Sales of Oil and Gas segment has gone up
33.40% to Rs 6,179.00 crore (accounting for 2.16% of total sales). Sales of Digital Services segment has gone up
10.58% to Rs 35,470.00 crore (accounting for 12.38% of total sales). Sales of Oil to Chemicals (02C) segment has
gone up 18.12% to Rs 1,57,133.00 crore (accounting for 54.85% of total
sales). Sales of Retail segment has gone
up 8.10% to Rs 75,630.00 crore (accounting for 26.40% of total sales). Inter-segment sales rose Rs 26,397.00 crore
to Rs 28,669.00 crore.
Profit before interest, tax and other
unallocable items (PBIT) has slumped 4.60% to Rs 27,399.00 crore. PBIT of Others segment fell 93.49% to Rs
39.00 crore (accounting for 0.14% of total PBIT). PBIT of Oil and Gas segment rose 21.15% to Rs
3,866.00 crore (accounting for 14.11% of total PBIT). PBIT of Digital Services segment rose 10.98%
to Rs 8,806.00 crore (accounting for 32.14% of total PBIT). PBIT of Oil to Chemicals (02C) segment fell
18.93% to Rs 10,686.00 crore (accounting for 39.00% of total PBIT). PBIT of Retail segment rose 4.93% to Rs
4,002.00 crore (accounting for 14.61% of total PBIT).
PBIT margin of Others segment fell from 3.36%
to 0.32%. PBIT margin of Oil and Gas
segment fell from 68.89% to 62.57%. PBIT
margin of Digital Services segment rose from 24.74% to 24.83%. PBIT margin of Oil to Chemicals (02C) segment
fell from 9.91% to 6.80%. PBIT margin of
Retail segment fell from 5.45% to 5.29%.
Overall PBIT margin fell from 11.15% to 9.56%.
Operating profit margin has declined from
18.35% to 16.72%, leading to 1.76% rise in operating profit to Rs 38,765.00
crore. Strong contribution from Oil
& Gas and consumer business offset weak O2C. JPL (Jio Platforms Limited)
EBITDA increased 11.6% YoY primarily on account of healthy revenue growth and
operating leverage. EBITDA for RRVL (Reliance retail venture limited) increased
by 10.5% led by increase in footfalls and expansion of store footprint,
streamlining of operations driving margin improvement. O2C EBITDA was lower by
14.3% on account of lower gasoline cracks (-30%) and lower downstream chemical
deltas, particularly PE (-17%), PP (-16%) and integrated polyester margin
(-15%). Oil and Gas segment EBITDA increased by 29.8% on account of higher
volumes from KG D6. Raw material cost as a % of total sales (net of stock
adjustments) increased from 45.61% to 45.98%.
Purchase of finished goods cost rose from 18.27% to 21.05%. Employee cost decreased from 3.14% to
2.98%. Other expenses fell from 14.85%
to 13.68%.
Other income rose 4.46% to Rs 3983
crore. PBIDT rose 2.01% to Rs 42748
crore. Provision for interest rose 1.39%
to Rs 5918 crore primarily due to higher
interest rates.
PBDT rose 2.11% to Rs 36830 crore. Provision for depreciation rose 15.46% to Rs
13596 crore on expanded asset base across all the businesses, higher network
utilization in Digital Services business, higher retail store count and ramp-up
in upstream production.
Profit before tax down 4.36% to Rs 23,234.00
crore. Provision for tax was expense of
Rs 5786 crore, compared to Rs 6112 crore.
Effective tax rate was 24.91% compared to 25.08%.
Minority interest increased 2.67% to Rs
2,307.00 crore. Net profit attributable
to owners of the company decreased 5.45% to Rs 15,138.00 crore.
Capital Expenditure for the quarter ended
June 30, 2024, was Rs 28,785 crore.
Promoters’ stake was 49.11% as of 30 June
2024 ,compared to 49.11% as of 30 June 2023.
Commenting
on the results, Mukesh D. Ambani, Chairman and Managing Director, Reliance
Industries Limited said: “Consolidated EBITDA for the quarter improved from a
year ago with strong contribution from Consumer and Upstream businesses
offsetting weak O2C operating environment. Reliance’s resilient operating and
financial performance in this quarter underscores the strength of its diverse
portfolio of businesses. Importantly, these businesses are contributing
significantly to India’s growth, providing vital energy and vibrant channels
for digital and physical distribution of goods and services.
The digital services business registered an
impressive financial performance year-on-year, continuing its positive growth
momentum. Jio’s True 5G network, covering ~85% of India’s 5G capacity,
continues to attract users, while the fixed broadband offerings are witnessing
increasing consumer traction both in homes and enterprises. The attractive
value proposition offered by Jio is enabling more Indians to transition to
next-gen data networks. This is further accelerating the digital revolution
which is reshaping communications, analytics and computing, media and
entertainment and commerce in India. Jio is committed to provide the
best-quality state-of-the-art network at most affordable prices globally.
Retail business delivered robust financial
results, as compared to last year, well supported by all consumption baskets.
With fast-paced expansion of its retail footprint, Reliance Retail continues to
cement its position as the preferred retailer for millions of Indians. The
digital and new commerce segments are also scaling up rapidly. Reliance Retail
is focused not only on providing quality products to customers, but also on
enhancing overall customer experience, both during and after sales.
The deep integration and flexibility built
into our O2C business model helped mitigate the impact of challenging operating
environment. The business was impacted by lower fuel cracks with tepid global
demand and ramp-up of new refineries. The oil and gas segment continued its
growth trajectory with higher production, offsetting lower year-on-year gas
price realizations.
Reliance has made significant progress on the
implementation of New Energy Giga-factories. On completion, these projects will
provide India a world-class, integrated green energy ecosystem which can propel
the next leg of sustainable growth.”
Full
year results analysis
Net sales (including other operating income)
of Reliance Industries has increased 2.65% to Rs 901064 crore. Sales of Others segment fell 8.98% to Rs
80,516.00 crore (accounting for 7.26% of total sales). Sales of Oil and Gas segment has gone up
48.04% to Rs 24,439.00 crore (accounting for 2.20% of total sales). Sales of Digital Services segment has gone up
10.97% to Rs 1,32,938.00 crore (accounting for 11.98% of total sales). Sales of Oil to Chemicals (02C) segment has
gone down 5.03% to Rs 5,64,749.00 crore (accounting for 50.90% of total
sales). Sales of Retail segment has gone
up 17.84% to Rs 3,06,848.00 crore (accounting for 27.66% of total sales). Inter-segment sales rose Rs 1,04,934.00 crore
to Rs 1,09,368.00 crore.
Profit before interest, tax and other
unallocable items (PBIT) has jumped 9.97% to Rs 1,20,457.00 crore. PBIT of Others segment rose 32.73% to Rs
1,387.00 crore (accounting for 1.15% of total PBIT). PBIT of Oil and Gas segment rose 35.65% to Rs
14,831.00 crore (accounting for 12.31% of total PBIT). PBIT of Digital Services segment rose 11.60%
to Rs 33,124.00 crore (accounting for 27.50% of total PBIT). PBIT of Oil to Chemicals (02C) segment fell
0.49% to Rs 53,617.00 crore (accounting for 44.51% of total PBIT). PBIT of Retail segment rose 25.04% to Rs
17,498.00 crore (accounting for 14.53% of total PBIT).
PBIT margin of Others segment rose from 1.18%
to 1.72%. PBIT margin of Oil and Gas
segment fell from 66.23% to 60.69%. PBIT
margin of Digital Services segment rose from 24.78% to 24.92%. PBIT margin of Oil to Chemicals (02C) segment
rose from 9.06% to 9.49%. PBIT margin of
Retail segment rose from 5.37% to 5.70%.
Overall PBIT margin rose from 10.14% to 10.86%.
Operating profit margin has jumped from
16.19% to 18%, leading to 14.12% rise in operating profit to Rs 1,62,233.00
crore. Raw material cost as a % of total
sales (net of stock adjustments) decreased from 49.58% to 44.19%. Purchase of finished goods cost rose from
18.56% to 20.96%. Employee cost
increased from 2.74% to 2.83%. Other
expenses rose from 13.47% to 14.11%.
Other income rose 36.84% to Rs 16057
crore. PBIDT rose 15.85% to Rs 178290
crore. Provision for interest rose
18.12% to Rs 23118 crore. Loan funds
rose to Rs 3,46,142.00 crore as of 31 March 2024 from Rs 3,34,392.00 crore as
of 31 March 2023. Inventories rose to Rs
1,52,770.00 crore as of 31 March 2024 from Rs 1,40,008.00 crore as of 31 March
2023. Sundry debtors were higher at Rs
31,628.00 crore as of 31 March 2024 compared to Rs 28,448.00 crore as of 31
March 2023. Cash and bank balance rose
to Rs 97,225.00 crore as of 31 March 2024 from Rs 68,664.00 crore as of 31
March 2023. Investments declined from Rs
2,35,560.00 crore as of 31 March 2023 to Rs 2,25,672.00 crore as of 31 March 2024.
PBDT rose 15.52% to Rs 155172 crore. Provision for depreciation rose 26.12% to Rs
50832 crore. Fixed assets declined from
Rs 10,03,287.00 crore as of 31 March 2023 to Rs 7,58,466.00 crore as of 31
March 2024. Intangible assets increased
from Rs 15,270.00 crore to Rs 3,60,374.00 crore.
Profit before tax grew 10.97% to Rs
1,04,340.00 crore. Share of profit/loss
was 1,512.50% higher at Rs 387 crore.
Provision for tax was expense of Rs 25707 crore, compared to Rs 20376
crore. Effective tax rate was 24.55%
compared to 21.67%.
Minority interest increased 27.25% to Rs
9,399.00 crore. Net profit attributable
to owners of the company increased 5.03% to Rs 69,621.00 crore.
Equity capital stood at Rs 6,766.00 crore as
of 31 March 2024 to Rs 6,766.00 crore as of 31 March 2023. Per share face Value remained same at Rs
10.00.
Promoters’ stake was 49.11% as of 31 March
2024 ,compared to 49.11% as of 31 March 2023 .
Cash flow from operating activities increased
to Rs 1,58,788.00 crore for year ended March 2024 from Rs 1,15,032.00 crore for
year ended March 2023. Cash flow used in
acquiring fixed assets during the year ended March 2024 stood at Rs 1,52,883.00
crore, compared to Rs 1,40,988.00 crore during the year ended March 2023.
Operational Highlights
Consolidated Jio Platforms
Growth in Revenue from Operations was primarily driven by robust
subscriber growth across mobility and homes.
Jio continues to lead the industry and gain subscriber share with 8.0
million net additions in Q1FY25. Monthly churn was 1.7%.
ARPU was Rs 181.7 with better subscriber mix, partially offset by
increasing mix of promotional 5G traffic being offered on an unlimited basis to
subscribers and not charged separately.
Engagement levels continued to remain strong with total data and voice
traffic increasing by 32.8% and 6.6% YoY, respectively.
Government of India conducted spectrum auctions in June 2024 for all the
existing 4G and 5G spectrum bands. Jio acquired rights for additional spectrum
in the 1800 MHz band in Bihar and West Bengal increasing its spectrum footprint
to 26,801 MHz (uplink + downlink)
Jio announced its new unlimited plans effective July 3, 2024. These new
plans imply an increase of 13%-25% vs previous plans.
Reliance Retail
Business delivered steady performance during the quarter with revenue of Rs
75,615 crore, up 8.1% YoY.
Reported EBITDA at Rs 5,664 crore which was up by 10.5% YoY, led by
increase in footfalls and expansion of store footprint, streamlining of
operations driving margin improvement.
The business expanded its store network with 331 new store openings
taking the total store count to 18,918 with area under operation at 81.3
million sq. ft.
The quarter recorded footfalls of over 296 million, a growth of 18.9% YoY.
The focus on scaling up Digital Commerce and New Commerce continued with
these channels contributing to 18% of total revenue.
During the quarter, the business entered into a long-term licensing
arrangement with ASOS, UK’s leading online fashion retailer, to exclusively
retail ASOS’s curated portfolio of fashion-led own brand labels across all
online and offline channels in India.
Oil to Chemicals (O2C)
Segment Revenue for
Q1FY25 increased by 18.1% YoY to Rs 157,133 crore primarily on account of
higher product prices tracking 9% increase in Brent crude oil prices, and
higher volumes supported by strong domestic demand.
Segment EBITDA for Q1FY25
is lower by 14.3% YoY at Rs 13,093 crore due to lower transportation fuel
cracks, particularly gasoline cracks which was down 30% YoY. Downstream
chemical margins were also lower on YoY basis – PE (-17%), PP (-16%) and
Polyester Chain deltas (-15%).
In Q1FY25, global
oil demand increased by 0.7 mb/d YoY to 102.9 mb/d, with major contribution
from Asia. Jet/Kero posted a strong YoY demand growth of 0.6 mb/d while
gasoline demand grew by 0.3 mb/d YoY. Diesel demand fell by 0.2 mb/d YoY.
Dated Brent
averaged $84.97 per barrel in Q1FY25, up $6.92 per barrel YoY. Crude oil
benchmarks rose YoY due to continuing production cuts by OPEC+, rising
geopolitical tensions in the Middle east and attacks on vessels in the Red Sea.
Global refinery
throughput was higher by 0.3 mb/d YoY at 81.6 mb/d in Q1FY25
Domestic demand of
HSD, MS and ATF increased by 1.6%, 7.1% and 11.4% respectively over same
quarter last year.
On YoY basis, Q1FY25
domestic polymer and polyester demand increased by 8% and 5% respectively.
Transportation fuels
Singapore Gasoline
92 RON cracks fell YoY to $8.5 per barrel in Q1FY25 vs $12.1 per barrel in Q1FY24,
impacted by higher quotas of Chinese exports and muted Chinese gasoline demand
with increase in EV penetration
Singapore Gasoil
10-ppm cracks moderated YoY to $14.8 per barrel in Q1FY25 vs $15.6 per barrel
in Q1FY24 with globally weak demand environment and ramp-up of new refineries
in Middle East and West Africa
Singapore Jet/Kero
cracks fell YoY to $13.2 per barrel in Q1FY25 vs $14 per barrel in Q1FY24
tracking gasoil cracks and increased supply from ramp-up of new refineries.
Polymers
Polymer margins
were down by 1% (-)17% YoY due to firm Naphtha prices. PE margin over Naphtha
was lower at $330 per tonne during Q1FY25 as against $397 per tonne in Q1FY24.
PP margin over Naphtha was lower at $318 per tonne during Q1FY25 as against
$381 per tonne in Q1FY24. PVC margin over Naphtha and EDC was marginally lower
at $371 per tonne in Q1FY25 as against $373 / MT in Q1FY24.
Singapore Naphtha
price was at $655 per tonne, up by 16% YoY. EDC price decreased by 6% YoY
amidst improved EDC availability in global market.
US Ethane price was
at 19.2 cpg, down by 9% YoY in line with lower US gas prices
During Q1FY25
polymer domestic demand increased by 8% YoY. PE, PP and PVC demand increased by
2%, 9% and 20% respectively, majorly driven by continuing focus on Government
schemes for agriculture and infrastructure. Growth in consumer durables,
automotive and packaging sectors also contributed to incremental demand.
Polyesters
Polyester chain
delta declined 15% YoY due to weaker PX, PTA and MEG deltas. Polyester chain
margin was $489 per tonne during Q1FY25
as against $574 per tonne in Q1FY24.
During Q1FY25, PX
and MEG margin over Naphtha decreased YoY due to increase in Naphtha price. PTA
margins were impacted adversely due to high inventory with Chinese producers
and increased competition. Downstream polyester margins remained stable YoY.
On YoY basis,
domestic polyester demand increased by 5%, driven by strong growth in PET,
which was up 27% due to higher demand from the beverage segment on account of
summer season and elections. PSF demand grew by 9% with improved market
sentiments with normalization of cotton prices while PFY demand decreased by 4%
with higher fabric imports
Oil and Gas (Exploration and production)
Business
Q1FY25 revenue is
higher by 33.4% as compared to Q1FY24 mainly on account of higher volumes
partly offset by lower price realisation from KG D6 and CBM Field.
The average price
realised for KG D6 gas was $ 9.27/MMBTU in Q1FY25 vis-à-vis $ 10.81 per MMBTU
in Q1FY24. The average price realised for CBM gas was $ 11.59/MMBTU in Q1FY25
vis-à-vis $ 14.15/MMBTU in Q1FY24.
EBITDA increased to
Rs 5,210 crore which is up by 29.8% on YoY basis. EBITDA margin was at 84.3%
for Q1FY25.
The average KGD6
Production for the Q1FY25 is 28.7 MMSCMD of gas and 21,640 bbl / day of Oil /
Condensate
Media Business
Revenue from operations was however down by 3.0% YoY
to Rs 3,141 crore due to IPL revenue being distributed across two quarters this
year.
Driven by the strong position of the News portfolio
across markets and election-linked advertising tailwinds, the business
delivered industry-leading ad growth of 30%+ YoY, a substantial increase
compared to the last general elections. Overall revenue growth moderated to
15.6% YoY on account of other revenue streams being higher in the base quarter,
which normalized in subsequent quarters in FY24.
Entertainment
revenue was down 5.5% YoY, as IPL matches were held in 4Q FY24 and Q1FY25 this
season, leading to a split of revenue across two quarters, compared to entire
revenue being booked in 1Q of last fiscal
The scrip is
currently trading at Rs 3109
|
Reliance Industries : Consolidated
Results
|
|
Particulars
|
2406
(03)
|
2306
(03)
|
Var.(%)
|
2403
(12)
|
2303
(12)
|
Var.(%)
|
|
Net
Sales
|
2,31,784.00
|
2,07,559.00
|
12
|
9,01,064.00
|
8,77,835.00
|
3
|
|
OPM
(%)
|
16.7
|
18.4
|
|
18.0
|
16.2
|
|
|
OP
|
38,765.00
|
38,093.00
|
2
|
1,62,233.00
|
1,42,162.00
|
14
|
|
Other
Inc.
|
3,983.00
|
3,813.00
|
4
|
16,057.00
|
11,734.00
|
37
|
|
PBIDT
|
42,748.00
|
41,906.00
|
2
|
1,78,290.00
|
1,53,896.00
|
16
|
|
Interest
|
5,918.00
|
5,837.00
|
1
|
23,118.00
|
19,571.00
|
18
|
|
PBDT
|
36,830.00
|
36,069.00
|
2
|
1,55,172.00
|
1,34,325.00
|
16
|
|
Depreciation
|
13596
|
11775
|
15
|
50832
|
40303
|
26
|
|
PBT
|
23,234.00
|
24,294.00
|
-4
|
104340
|
94022
|
11
|
|
Share
of Profit/(Loss) from Associates
|
-3
|
76
|
PL
|
387
|
24
|
1513
|
|
PBT
before EO
|
23231
|
24370
|
-5
|
104727
|
94046
|
11
|
|
EO
Income
|
0
|
0
|
-
|
0
|
0
|
-
|
|
PBT
after EO
|
23231
|
24370
|
-5
|
104727
|
94046
|
11
|
|
Taxation
|
5786
|
6112
|
-5
|
25707
|
20376
|
26
|
|
PAT
|
17445
|
18258
|
-4
|
79020
|
73670
|
7
|
|
Minority
Interest (MI)
|
2307
|
2247
|
3
|
9399
|
7386
|
27
|
|
Net
profit
|
15138
|
16011
|
-5
|
69621
|
66284
|
5
|
|
EPS
(Rs)*
|
#
|
#
|
|
102.9
|
98.0
|
|
|
Notes
|
|
*
EPS is on current equity of Rs 6,765.81 crore, Face value of Rs 10, Excluding
extraordinary items.
|
|
#
EPS is not annualised
|
|
bps
: Basis points
|
|
EO
: Extraordinary items
|
|
Figures
in Rs crore
|
|
Source:
Capitaline Corporate Database
|
|
Reliance Industries : Consolidated
Segment Results
|
|
|
%
of (Total)
|
2406
(03)
|
2306
(03)
|
Var.(%)
|
%
of (Total)
|
2403
(12)
|
2303
(12)
|
Var.(%)
|
|
Sales
|
|
Others
|
4
|
12080
|
17827
|
-32
|
7
|
80516
|
88455
|
-9
|
|
Oil
and Gas
|
2
|
6179
|
4632
|
33
|
2
|
24439
|
16508
|
48
|
|
Digital
Services
|
12
|
35470
|
32077
|
11
|
12
|
132938
|
119791
|
11
|
|
Oil
to Chemicals (02C)
|
55
|
157133
|
133031
|
18
|
51
|
564749
|
594650
|
-5
|
|
Retail
|
26
|
75630
|
69962
|
8
|
28
|
306848
|
260394
|
18
|
|
Total
Reported Sales
|
100
|
286492
|
257529
|
11
|
100
|
1109490
|
1079798
|
3
|
|
Less:
Inter segment revenues
|
|
28669
|
26397
|
9
|
|
109368
|
104934
|
4
|
|
Net
Sales
|
|
257823
|
231132
|
12
|
|
1000122
|
974864
|
3
|
|
PBIT
|
|
Others
|
0
|
39
|
599
|
-93
|
1
|
1387
|
1045
|
33
|
|
Oil
and Gas
|
14
|
3866
|
3191
|
21
|
12
|
14831
|
10933
|
36
|
|
Digital
Services
|
32
|
8806
|
7935
|
11
|
28
|
33124
|
29681
|
12
|
|
Oil
to Chemicals (02C)
|
39
|
10686
|
13181
|
-19
|
45
|
53617
|
53883
|
0
|
|
Retail
|
15
|
4002
|
3814
|
5
|
15
|
17498
|
13994
|
25
|
|
Total
PBIT
|
100
|
27399
|
28720
|
-5
|
100
|
120457
|
109536
|
10
|
|
Less
: Interest
|
|
5918
|
5837
|
1
|
|
23118
|
19571
|
18
|
|
Add:
Other un-allcoable
|
|
1753
|
1487
|
18
|
|
7388
|
4081
|
81
|
|
PBT
|
|
23234
|
24370
|
-5
|
|
104727
|
94046
|
11
|
|