|
Net sales (including other operating income)
of Reliance Industries has declined 0.15% to Rs 231535 crore. Sales of Oil and Gas segment has gone down
6.01% to Rs 6,222.00 crore (accounting for 2.16% of total sales) due to lower
gas price realizations . Sales of
Digital Services segment has gone up 16.53% with the impact of revised telecom
tariffs for mobility services and scale-up of homes and digital services
businesses to Rs 38,055.00 crore (accounting for 13.22% of total sales). Sales of Oil to Chemicals (02C) segment has
gone up 5.13% with higher volumes and increased domestic placement of products
to Rs 155,580.00 crore (accounting for 54.06% of total sales). Sales of Retail segment has gone down 1.09%
to Rs 76,325.00 crore (accounting for 26.52% of total sales). Sales of Others segment fell 39.19% to Rs
11,623.00 crore (accounting for 4.04% of total sales).Inter-segment sales rose
Rs 27,546.00 crore to Rs 29,778.00 crore.
Operating profit margin has declined from
17.67% to 16.87%, leading to 4.66% decline in operating profit to Rs 39,058.00
crore. Raw material cost as a % of total
sales (net of stock adjustments) increased from 43.88% to 44.89%. Purchase of finished goods cost rose from
21.93% to 22.15%. Employee cost increased from 2.57% to
2.79%. Other expenses fell from 13.93%
to 13.80%.
Other income rose 26.95% to Rs 4876
crore. PBIDT fell 1.95% to Rs 43934
crore. EBITDA for Jio Platforms Limited
(JPL) increased 17.8% YoY due to better subscriber mix, digital services
scale-up and revision in telecom tariffs. EBITDA margin for Reliance Retail
Ventures Limited (RRVL) improved by 30 bps with continued focus on streamlining
of operations and calibrated approach in B2B. O2C EBITDA was lower by 23.7% on
account of sharp decline in product margins. Fuel cracks declined by nearly 50%
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
11.0% on account of sustained volume growth and one time provisioning towards
decommissioning cost for Tapti field in Q2FY 24.
Provision for interest rose 4.99% to Rs 6017
crore primarily due to higher debt. PBDT fell 2.97% to Rs 37917 crore. Provision for depreciation rose 2.34% to Rs
12880 crore. Fixed assets increased to
Rs 1,152,857.00 crore as of 30 September 2024 from Rs 736,586.00 crore as of 30
September 2023. Intangible assets
declined from Rs 349,020.00 crore to Rs 14,763.00 crore.
Profit before interest, tax and other
unallocable items (PBIT) has slumped 5.23% to Rs 29,025.00 crore. PBIT of Others segment fell 60.32% to Rs
175.00 crore (accounting for 0.60% of total PBIT). PBIT of Oil and Gas segment rose 14.64% to Rs
3,947.00 crore (accounting for 13.60% of total PBIT). PBIT of Digital Services segment rose 19.82%
to Rs 9,858.00 crore (accounting for 33.96% of total PBIT). PBIT of Oil to Chemicals (02C) segment fell
24.67% to Rs 10,613.00 crore (accounting for 36.57% of total PBIT). PBIT of Retail segment rose 0.09% to Rs
4,432.00 crore (accounting for 15.27% of total PBIT).
PBIT margin of Others segment fell from 2.31%
to 1.51%. PBIT margin of Oil and Gas
segment rose from 52.01% to 63.44%. PBIT
margin of Digital Services segment rose from 25.19% to 25.90%. PBIT margin of Oil to Chemicals (02C) segment
fell from 9.52% to 6.82%. PBIT margin of
Retail segment rose from 5.74% to 5.81%.
Overall PBIT margin fell from 10.80% to 10.08%.
Profit before tax down 5.50% to Rs 25,037.00
crore. Share of profit/loss was 282.76%
higher at Rs 222 crore. Provision for
tax was expense of Rs 5936 crore, compared to Rs 6673 crore. Effective tax rate was 23.50% compared to
25.13%.
Minority interest increased 11.11% to Rs
2,760.00 crore. Net profit attributable
to owners of the company decreased 4.78% to Rs 16,563.00 crore.
Capital Expenditure for the quarter ended
September 30, 2024, was Rs 34,022 crore.
Promoters’ stake was 49.11% as of 30
September 2024 ,compared to 49.11% as of 30 September 2023.
Commenting
on the results, Mukesh D. Ambani, Chairman and Managing Director, Reliance
Industries Limited said: “I am happy to note that during this quarter 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.
Growth in Digital Services was led by
increased ARPU and improving customer engagement metrics reflecting the strong
value proposition of our services. The home broadband segment is witnessing
accelerated momentum on the back of our unique industry-leading JioAirFiber
offering. Jio’s broad spectrum of offerings enables it to digitally empower
every village, town and city in India as well as the country’s small and medium
scale enterprises. The digital services business continues to focus on innovative
deep-tech solutions on a national scale and is on track to deliver the
path-breaking benefits of Artificial Intelligence to all Indians.
The retail segment continues to increase its
consumer touchpoints and product offerings across physical and digital
channels. The unique omni-channel retail model enables the business to service
a wide range of requirements of a vast, heterogenous customer base. The retail
business continues to partner with renowned domestic as well as global players,
expanding its basket of quality product offerings. The focus on strengthening
our Retail operations will help us rapidly scale-up this business in the coming
quarters and years and sustain our industry-leading growth momentum.
The first of our New Energy Giga-factories is
on-track to commence production of solar PV modules by the end of this year.
With a comprehensive range of renewable solutions including solar, energy
storage systems, green hydrogen, bio-energy and wind, the New Energy business
is poised to become a significant contributor to global clean energy
transition.”
For
year-to-date (YTD) results analysis
Net sales (including other operating income)
of Reliance Industries has increased 5.43% to Rs 463319 crore. Sales of Others segment fell 35.84% to Rs
23,703.00 crore (accounting for 4.13% of total sales). Sales of Oil and Gas segment has gone up
10.21% to Rs 12,401.00 crore (accounting for 2.16% of total sales). Sales of Digital Services segment has gone up
13.58% to Rs 73,525.00 crore (accounting for 12.80% of total sales). Sales of Oil to Chemicals (02C) segment has
gone up 11.28% to Rs 312,713.00 crore (accounting for 54.45% of total
sales). Sales of Retail segment has gone
up 3.28% to Rs 151,955.00 crore (accounting for 26.46% of total sales). Inter-segment sales rose Rs 53,943.00 crore
to Rs 58,447.00 crore.
Profit before interest, tax and other
unallocable items (PBIT) has slumped 4.93% to Rs 56,424.00 crore. PBIT of Others segment fell 79.42% to Rs
214.00 crore (accounting for 0.38% of total PBIT). PBIT of Oil and Gas segment rose 17.77% to Rs
7,813.00 crore (accounting for 13.85% of total PBIT). PBIT of Digital Services segment rose 15.48%
to Rs 18,664.00 crore (accounting for 33.08% of total PBIT). PBIT of Oil to Chemicals (02C) segment fell
21.89% to Rs 21,299.00 crore (accounting for 37.75% of total PBIT). PBIT of Retail segment rose 2.33% to Rs
8,434.00 crore (accounting for 14.95% of total PBIT).
PBIT margin of Others segment fell from 2.82%
to 0.90%. PBIT margin of Oil and Gas
segment rose from 58.96% to 63.00%. PBIT
margin of Digital Services segment rose from 24.97% to 25.38%. PBIT margin of Oil to Chemicals (02C) segment
fell from 9.70% to 6.81%. PBIT margin of
Retail segment fell from 5.60% to 5.55%.
Overall PBIT margin fell from 10.97% to 9.82%.
Operating profit margin has declined from
17.99% to 16.80%, leading to 1.57% decline in operating profit to Rs 77,823.00
crore. Raw material cost as a % of total
sales (net of stock adjustments) increased from 44.70% to 45.43%. Purchase of finished goods cost rose from
20.19% to 21.60%. Employee cost
increased from 2.84% to 2.88%. Other
expenses fell from 14.37% to 13.74%.
Other income rose 15.74% to Rs 8859
crore. PBIDT fell 0.04% to Rs 86682
crore. Provision for interest rose 3.17%
to Rs 11935 crore.
PBDT fell 0.53% to Rs 74747 crore. Provision for depreciation rose 8.69% to Rs
26476 crore. Fixed assets increased to
Rs 1,152,857.00 crore as of 30 September 2024 from Rs 736,586.00 crore as of 30
September 2023. Intangible assets
declined from Rs 349,020.00 crore to Rs 14,763.00 crore.
Profit before tax down 4.95% to Rs 48,271.00
crore. Share of profit/loss was 63.43%
higher at Rs 219 crore. Provision for
tax was expense of Rs 11722 crore, compared to Rs 12785 crore. Effective tax rate was 24.17% compared to
25.11%.
Minority interest increased 7.10% to Rs
5,067.00 crore. Net profit attributable
to owners of the company decreased 5.10% to Rs 31,701.00 crore.
Promoters’ stake was 49.11% as of 30 September
2024 ,compared to 49.11% as of 30 September 2023 .
Cash flow from operating activities increased
to Rs 91,810.00 crore for YTD ended September 2024 from Rs 70,845.00 crore for
YTD ended September 2023. Cash flow used
in acquiring fixed assets during the YTD ended September 2024 stood at Rs
69,137.00 crore, compared to Rs 65,811.00 crore during the YTD ended September
2023.
Operational Highlights
Consolidated Jio Platforms
Operating revenue (net of GST) growth primarily driven by partial impact
of tariff hike and scale-up of home and digital services businesses
ARPU increased to Rs 195.1 with the partial follow-through of the tariff
hike and a better subscriber mix. The full impact of the tariff hike will flow
through in the next 2-3 quarters
Engagement levels continued to remain strong with total data and voice
traffic increasing by 24% and 6.4% YoY, respectively
Limited amount of SIM consolidation observed after the tariff hike,
offsetting continued strength in gross addition in Q2FY25. Monthly churn
increased to 2.8%.
JioAirFiber’s rapid uptake has significantly accelerated the pace of home
connections, with around 2.8 million connected homes by JioAirFiber as of
September 24.
Reliance Retail
Business registered a revenue of Rs 76,302 crore, down 1.1% YoY. Growth
impacted by weak Fashion and Lifestyle (F&L) demand, continued focus on
streamlining of operations and calibrated approach to B2B business to improve
margins
The business opened 464 new stores. Total store count at 18,946 with area
under operation at 79.4 million sq. ft.
The quarter recorded footfalls of over 297 million, a growth of 14% YoY.
The focus on scaling up Digital Commerce and New Commerce continued with
these channels contributing to 17% of total revenue
During the quarter, the business entered into exclusive partnerships with
Delta Galil to expand presence in lingerie and active wear categories. Launched
ASOS in India
Oil to Chemicals (O2C)
Segment Revenue for
Q2FY25 increased by 5.1% YoY to Rs 155,580 crore (primarily on account of
higher volumes and increased domestic placement of products
Segment EBITDA for Q2FY25
is lower by 23.7% YoY to Rs 12,413 crore. Unfavourable demand-supply balance
led to sharp around 50% decline in transportation fuel cracks and continued
weakness in downstream chemical deltas.
Depreciation for Q2FY25
was higher due to accelerated depreciation for catalyst and equipment replaced
during planned shutdown
In Q2FY25, global
oil demand rose by only 0.8 million barrels per day (mbpd) YoY (vs 2.5 (mbpd)
in Q2FY24) to 103.9 mbpd. Gasoline posted a YoY demand growth of 0.35 mbpd
while Jet/Kero demand grew by 0.30 mbpd YoY. Diesel demand remained flat.
Dated Brent
averaged US$ 80.2 per barrel in Q2FY25, down US$ 6.6 per bbl YoY. Crude oil
benchmarks fell YoY due to lower than expected demand growth, especially in
China. Increasing supplies from non-OPEC players pushed prices lower even
though OPEC plus countries extended voluntary production cuts.
Global refinery
crude throughput was lower by 0.5 mbpd YoY at 82.3 mbpd in Q2FY25.
Domestic demand of
HSD, MS & ATF increased by 0.1%, 7.3% and 9.4% respectively over same
quarter last year
On YoY basis, Q2FY25
domestic polymer and polyester demand declined by 5% and 7% respectively due to
seasonal factors.
Transportation fuels
Cracks of gasoline,
gasoil and jet/kero declined from elevated levels a year ago, due to softer
demand growth along with additional supply from new refineries commissioned in
Middle East, Asia Pacific & Nigeria.
Singapore Gasoline
92 RON cracks declined YoY to US$ 6.8 per barrel in Q2FY25 vs $13.1 per barrel in
Q2FY24. Cracks declined YoY due to global softness in Gasoline demand, higher
inventories and rising EV penetration in China. Significantly higher refinery
runs in the US also led to increased global supplies impacting margins.
Singapore Gasoil
10-ppm cracks declined YoY to $13.6 per barrel in Q2FY25 vs $28.8 per barrel in
Q2FY24. Cracks declined YoY due to weak economic and industrial activity in
China. Diesel cracks were also impacted by slow recovery in demand in the US
and Europe, due to slowing economy amid delayed interest rate cuts
Singapore Jet/Kero
cracks declined YoY to US $13.1 per barrel in Q2FY25 vs US$ 26.1 per barrel in Q2FY24.
Cracks moved lower in line with gasoil cracks.
Reliance BP
Mobility Limited (RBML) (operating under brand Jio-bp), operates a country-wide
network of 1,821 outlets (vs 1,663 in Q2FY24).
Polymers
Polymer margins
were lower YoY with firm Naphtha and EDC prices and muted demand. Singapore
Naphtha price was at US$ 651 per tonne, up by 5% YoY. EDC price was at US$ 329 per
tonne, up 21% YoY as price during Q2FY24 was lower at US$ 273 per tonne with
ample US supplies
PE margin over
Naphtha was lower at US$ 304 per tonne during Q2FY25 as against US$ 335 per
tonne in Q2FY24. PP margin over Naphtha was lower at US$ 293 per tonne during Q2FY25
as against US$ 297 per tonne in Q2FY24. PVC margin over Naphtha and EDC was
substantially lower at US$ 347 per tonne in Q2FY25 as against US$ 460 per tonne
in Q2FY24.
US Ethane price was
at 16 cpg, down by 47% YoY in line with lower US gas prices and higher Ethane
availability, supporting ethane cracking economics.
During Q2FY25
polymer domestic demand declined by 5% YoY. PE demand was down 12% mainly due
to high base effect as Q2FY24 witnessed higher imports due to multiyear low
prices. PVC demand was up 3% led by continuing focus on Govt. schemes for
agriculture and infrastructure. PP demand remained stable
Polyesters
Polyester chain
delta declined 9% YoY due to firm Naphtha prices and slow recovery in
downstream demand. Polyester chain margin was $475 per tonne during Q2FY25 as
against $524 per tonne in Q2FY24.
During Q2FY25, PX
margin over Naphtha decreased substantially by 37% YoY, driven by increase in
PX supplies and firm Naphtha prices. MEG margins improved from a low base, led
by decline in China port inventory.
On YoY basis,
domestic polyester demand decreased by 7%. PET demand was down 10% due to low
demand from beverages sector led by extended monsoon. PSF and PFY was down by
9% and 5% respectively due to low activity in fabrics market.
Oil and Gas (Exploration and production)
Business
Q2FY25 revenue is
lower by 6.0% as compared to Q2FY24 mainly on account of lower price
realisation partly offset by increase in gas and condensate volumes in KGD6 and
CBM field
The average price
realized for KG D6 gas was $ 9.55/MMBTU in Q2FY25 vis-à-vis $ 10.46/MMBTU in Q2FY24.
The average price realised for CBM gas was $ 11.4/MMBTU in Q2FY25 vis-à-vis $
13.72/MMBTU in Q2FY24.
EBITDA increased to
Rs 5,290 crore which is up by 11.0% on YoY basis. EBITDA margin was at 85.0%
for Q2FY25
The average KGD6
Production for the Q2FY25 is 28.5 MMSCMD of gas and 20,832 bbl / day of Oil /
Condensate
The current rate of
production is ~28.1 MMSCMD of gas and ~ 21,000 bbl / day of Oil / Condensate
Media Business
Media
business operating revenue declined marginally by 2.1%, primarily due to a
sharp drop in revenues of movie segment, a project-based business
News portfolio
revenue grew 6% driven by growth in Digital segment advertising revenue, across
all brands. TV advertising environment was soft during the quarter as
advertising volumes across industry for the news genre declined by over 20%
YoY. EBITDA for the News business continued to improve with a sharp turnaround
in the first half of the fiscal
Entertainment
business operating revenue was down 5%, primarily due to the drop in movie
segment revenue. In Q2FY24, Viacom18 Studios had 2 big-ticket movies whereas no
movies were released in the current quarter. This impact was largely offset by
growth in subscription revenue on account of new pricing as well as the
increased monetisation of Sports portfolio. Growth in ad revenue was primarily
driven by digital, across both sports and non-sports segments
The merger
of TV18 Broadcast Ltd. (TV18), and e-Eighteen.com Ltd. (E18) with Network18
Media & Investments Ltd. (Network18) through a Scheme of Arrangement was
sanctioned by the Hon’ble National Company Law Tribunal, Mumbai Bench and was
made effective on 3 rd October 2024.
The scrip is
currently trading at Rs 2745
|
Reliance Industries : Consolidated
Results
|
|
Particulars
|
2409
(03)
|
2309
(03)
|
Var.(%)
|
2409
(06)
|
2309
(06)
|
Var.(%)
|
2403
(12)
|
2303
(12)
|
Var.(%)
|
|
Net
Sales (including other operating income)
|
2,31,535
|
2,31,886
|
0
|
4,63,319
|
4,39,445
|
5
|
9,01,064
|
8,77,835
|
3
|
|
OPM
(%)
|
16.9
|
17.7
|
|
16.8
|
18.0
|
|
18.0
|
16.2
|
|
|
OP
|
39,058
|
40,968
|
-5
|
77,823
|
79,061
|
-2
|
1,62,233
|
1,42,162
|
14
|
|
Other
Inc.
|
4,876
|
3,841
|
27
|
8,859
|
7,654
|
16
|
16,057
|
11,734
|
37
|
|
PBIDT
|
43,934
|
44,809
|
-2
|
86,682
|
86,715
|
0
|
1,78,290
|
1,53,896
|
16
|
|
Interest
|
6,017
|
5,731
|
5
|
11,935
|
11,568
|
3
|
23,118
|
19,571
|
18
|
|
PBDT
|
37,917
|
39,078
|
-3
|
74,747
|
75,147
|
-1
|
1,55,172
|
1,34,325
|
16
|
|
Depreciation
|
12,880
|
12,585
|
2
|
26,476
|
24,360
|
9
|
50,832
|
40,303
|
26
|
|
PBT
|
25,037
|
26,493
|
-6
|
48,271
|
50,787
|
-5
|
1,04,340
|
94,022
|
11
|
|
Share
of Profit/(Loss) from Associates
|
222
|
58
|
283
|
219
|
134
|
63
|
387
|
24
|
1,513
|
|
PBT
before EO
|
25,259
|
26,551
|
-5
|
48,490
|
50,921
|
-5
|
1,04,727
|
94,046
|
11
|
|
EO
Income
|
0
|
0
|
-
|
0
|
0
|
-
|
0
|
0
|
-
|
|
PBT
after EO
|
25,259
|
26,551
|
-5
|
48,490
|
50,921
|
-5
|
1,04,727
|
94,046
|
11
|
|
Taxation
|
5,936
|
6,673
|
-11
|
11,722
|
12,785
|
-8
|
25,707
|
20,376
|
26
|
|
PAT
|
19,323
|
19,878
|
-3
|
36,768
|
38,136
|
-4
|
79,020
|
73,670
|
7
|
|
Minority
Interest (MI)
|
2,760
|
2,484
|
11
|
5,067
|
4,731
|
7
|
9,399
|
7,386
|
27
|
|
Net
profit
|
16,563
|
17,394
|
-5
|
31,701
|
33,405
|
-5
|
69,621
|
66,284
|
5
|
|
P/(L)
from discontinued operations net of tax
|
0
|
0
|
-
|
0
|
0
|
-
|
0
|
418
|
-
|
|
Net
profit after discontinued operations
|
16,563
|
17,394
|
-5
|
31,701
|
33,405
|
-5
|
69,621
|
66,702
|
4
|
|
EPS
(Rs)*
|
#
|
#
|
|
#
|
#
|
|
102.9
|
98.0
|
|
|
Notes
|
|
*
EPS is on current equity of Rs 6,766.08 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)
|
2409
(03)
|
2309
(03)
|
Var.(%)
|
%
of (Total)
|
2409
(06)
|
2309
(06)
|
Var.(%)
|
%
of (Total)
|
2403
(12)
|
2303
(12)
|
Var.(%)
|
|
Sales
|
|
|
|
|
|
Others
|
4
|
11623
|
19114
|
-39
|
4
|
23703
|
36941
|
-36
|
7
|
80516
|
88455
|
-9
|
|
Oil
and Gas
|
2
|
6222
|
6620
|
-6
|
2
|
12401
|
11252
|
10
|
2
|
24439
|
16508
|
48
|
|
Digital
Services
|
13
|
38055
|
32657
|
17
|
13
|
73525
|
64734
|
14
|
12
|
132938
|
119791
|
11
|
|
Oil
to Chemicals (02C)
|
54
|
155580
|
147988
|
5
|
54
|
312713
|
281019
|
11
|
51
|
564749
|
594650
|
-5
|
|
Retail
|
27
|
76325
|
77163
|
-1
|
26
|
151955
|
147125
|
3
|
28
|
306848
|
260394
|
18
|
|
Total
Reported Sales
|
100
|
287805
|
283542
|
2
|
100
|
574297
|
541071
|
6
|
100
|
1109490
|
1079798
|
3
|
|
Less:
Inter segment revenues
|
|
29778
|
27546
|
8
|
|
58447
|
53943
|
8
|
|
109368
|
104934
|
4
|
|
Net
Sales
|
100
|
258027
|
255996
|
1
|
100
|
515850
|
487128
|
6
|
100
|
1000122
|
974864
|
3
|
|
PBIT
|
|
|
|
|
|
Others
|
1
|
175
|
441
|
-60
|
0
|
214
|
1040
|
-79
|
1
|
1387
|
1045
|
33
|
|
Oil
and Gas
|
14
|
3947
|
3443
|
15
|
14
|
7813
|
6634
|
18
|
12
|
14831
|
10933
|
36
|
|
Digital
Services
|
34
|
9858
|
8227
|
20
|
33
|
18664
|
16162
|
15
|
28
|
33124
|
29681
|
12
|
|
Oil
to Chemicals (02C)
|
37
|
10613
|
14088
|
-25
|
38
|
21299
|
27269
|
-22
|
45
|
53617
|
53883
|
0
|
|
Retail
|
15
|
4432
|
4428
|
0
|
15
|
8434
|
8242
|
2
|
15
|
17498
|
13994
|
25
|
|
Total
PBIT
|
100
|
29025
|
30627
|
-5
|
100
|
56424
|
59347
|
-5
|
100
|
120457
|
109536
|
10
|
|
Less
: Interest
|
|
6017
|
5731
|
5
|
|
11935
|
11568
|
3
|
|
23118
|
19571
|
18
|
|
Add:
Other un-allcoable
|
|
2029
|
1655
|
23
|
|
3782
|
3142
|
20
|
|
7388
|
4081
|
81
|
|
PBT
|
100
|
25037
|
26551
|
-6
|
100
|
48271
|
50921
|
-5
|
100
|
104727
|
94046
|
11
|
|