Billionaire Mukesh Ambani-led Reliance Industries has reported a gross revenue of Rs 255,996 crore ($30.8 billion) for the second quarter of the fiscal year 2024, marking a 1.2% year-on-year increase.
According to media reports, the growth was primarily driven by the company’s consumer businesses.
Financial performance of businesses
Jio Platforms Limited (JPL) saw a 10.6% YoY revenue increase, attributed to a 7.5% rise in its subscriber base and a higher Average Revenue Per User (ARPU). Reliance Retail Ventures Limited (RRVL) experienced an 18.8% YoY growth, with food and grocery leading the way with a 33% increase.
The Oil and gas segment also witnessed a significant revenue boost due to the MJ field’s incremental production of gas and condensate. However, the Oil-to-Chemical (O2C) segment faced a decline in revenue, primarily due to a 14% drop in crude oil prices.
EBITDA Performance
The company’s EBITDA surged by 30.2% YoY, reaching Rs 44,867 crore ($5.4 billion). This growth can be attributed to several factors. JPL’s net subscriber addition and a surge in data traffic led to an 80 basis points margin improvement.
RRVL’s focus on cost management and operational leverage resulted in an 80 bps margin expansion to 8.4%.
The O2C segment maintained its performance, benefiting from strong domestic demand and optimized feedstock costs. The Oil & Gas segment’s earnings improved due to better gas price realization and a 66% growth in KGD6 volumes.
Operational costs and expenditure
Depreciation costs rose by 29.4% YoY, amounting to Rs 12,585 crore ($1.5 billion), influenced by an expanded asset base across all business sectors. Finance costs also saw an uptick of 25.8% YoY, reaching Rs 5,731 crore ($690 million), primarily due to rising interest rates and currency depreciation.
Tax expenses for the quarter stood at Rs 6,673 crore ($804 million), marking a 38.0% YoY increase.
Profit growth
Reliance’s profit after tax for the quarter showcased a robust growth of 29.7% YoY, reaching Rs 19,878 crore ($2.4 billion). The company’s capital expenditure for the quarter ending September 30, 2023, was Rs 38,815 crore ($4.7 billion), reflecting the ongoing investments in the pan-India 5G rollout.
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Ambani’s Reliance reports 30% YoY increase in net profit to Rs 19,878 crore in Q2FY24
Billionaire Mukesh Ambani-led Reliance Industries has reported a gross revenue of Rs 255,996 crore ($30.8 billion) for the second quarter of the fiscal year 2024, marking a 1.2% year-on-year increase.
According to media reports, the growth was primarily driven by the company’s consumer businesses.
Financial performance of businesses
Jio Platforms Limited (JPL) saw a 10.6% YoY revenue increase, attributed to a 7.5% rise in its subscriber base and a higher Average Revenue Per User (ARPU). Reliance Retail Ventures Limited (RRVL) experienced an 18.8% YoY growth, with food and grocery leading the way with a 33% increase.
The Oil and gas segment also witnessed a significant revenue boost due to the MJ field’s incremental production of gas and condensate. However, the Oil-to-Chemical (O2C) segment faced a decline in revenue, primarily due to a 14% drop in crude oil prices.
EBITDA Performance
The company’s EBITDA surged by 30.2% YoY, reaching Rs 44,867 crore ($5.4 billion). This growth can be attributed to several factors. JPL’s net subscriber addition and a surge in data traffic led to an 80 basis points margin improvement.
RRVL’s focus on cost management and operational leverage resulted in an 80 bps margin expansion to 8.4%.
The O2C segment maintained its performance, benefiting from strong domestic demand and optimized feedstock costs. The Oil & Gas segment’s earnings improved due to better gas price realization and a 66% growth in KGD6 volumes.
Operational costs and expenditure
Depreciation costs rose by 29.4% YoY, amounting to Rs 12,585 crore ($1.5 billion), influenced by an expanded asset base across all business sectors. Finance costs also saw an uptick of 25.8% YoY, reaching Rs 5,731 crore ($690 million), primarily due to rising interest rates and currency depreciation.
Tax expenses for the quarter stood at Rs 6,673 crore ($804 million), marking a 38.0% YoY increase.
Profit growth
Reliance’s profit after tax for the quarter showcased a robust growth of 29.7% YoY, reaching Rs 19,878 crore ($2.4 billion). The company’s capital expenditure for the quarter ending September 30, 2023, was Rs 38,815 crore ($4.7 billion), reflecting the ongoing investments in the pan-India 5G rollout.
Join our new WhatsApp Channel for the latest startup news updates
Disclaimer
We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.
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