Reliance Industries Q2 Results: Net Profit Soars 27% To Touch Rs 17,394 Crore

Reliance Retail logged a 19 per cent jump in gross revenue on account of overall growth across consumption baskets led by a robust expansion momentum in the grocery, fashion, and lifestyle businesses.

The revenue of RIL’s Oil and Gas segment stood at Rs 6,620 crore in Q2FY24, registering a jump of over 71 per cent from Rs 3,853 crore in the same quarter a year earlier. 

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Reliance Industries (RIL) on Friday reported a 27 per cent increase in net profit, attributable to the owners of the company, for the quarter ended September 30, 2023 via an exchange filing. The conglomerate logged a net profit of Rs 17,394 crore for the second quarter (Q2) of the current fiscal year (FY24) down from Rs 13,656 crore reported in the same period last year. 

Mukesh Ambani, Reliance’s Chairman and Managing Director, said, “Strong operational and financial contribution from all business segments has helped Reliance deliver another quarter of robust growth.”

The company’s revenue from operations increased to Rs 2.34 lakh crore in the reporting quarter in the current financial year, logging a nominal growth of over 1 per cent from Rs 2.32 lakh crore in the corresponding quarter a year earlier. 

Amongst the firm’s segments, the Oil and Gas sector contributed the maximum to the giant’s revenue. The revenue of RIL’s Oil and Gas segment stood at Rs 6,620 crore in Q2FY24, registering a jump of over 71 per cent from Rs 3,853 crore in the same quarter a year earlier. 

While the retail and digital segments of the company performed well, the Oil to Chemicals (O2C) sector of the firm saw a decline of 7 per cent in revenue on a year-on-year (YoY) basis. The O2C sector reported a revenue of Rs 1.47 lakh crore for Q2FY24 against Rs 1.59 lakh revenue logged in Q2FY23. 

Explaining the decline in the segment, Ambani said, “Resilient performance of the O2C segment despite volatility in energy markets was led by strong growth in fuel demand in a supply-constrained market. Weak global demand and supply-overhang continued to impact downstream margins. The growth of oil and gas business is particularly noteworthy with production from KGD6 block ramping up and providing valuable fuel for energy transition to the Indian economy.”

Reliance Retail Ventures Limited

Reliance Retail, the retail arm of RIL reported an almost 19 per cent growth in gross revenue which stood at Rs 77,148 crore in Q2FY24, up from Rs 64,920 crore reported in the corresponding quarter a year earlier. The EBITDA for the firm jumped 32 per cent to Rs 5,820 crore in the reporting quarter, against Rs 4,286 crore in the same period last year. 

The firm noted an increase in depreciation on account of a higher asset base due to the addition of new stores and supply chain infrastructure. It also stated higher finance costs due to a surge in interest rates and borrowings for business expansion. The firm mentioned an overall growth across consumption baskets led by a robust expansion momentum in the grocery, fashion, and lifestyle businesses. The consumer electronics sector also logged a steady performance despite the festive period outside the reporting quarter in the current fiscal year. 

Isha Ambani, the executive director at RRVl, commented on the performance and said, “We have delivered yet another quarter of stellar performance and achieved an all-time high across financial metrics. The performance is a testament to our customer-centric approach that defines Reliance Retail.”

Oil To Chemicals (O2C) Segment

While this sector reported a decline in revenue, the EBITDA for the segment increased 36 per cent to Rs 16,281 crore in Q2FY24, up from Rs 11,968 crore in the corresponding quarter a year earlier. The reduction in revenue was attributed to a sharp drop of 14 per cent in crude oil prices, resulting in lower price realisation for products.

Oil And Gas Segment

The Oil and Gas segment registered strong growth in revenue in the quarter on account of higher production of gas and oil and the commencement of condensate production from MJ field along with 6 per cent higher gas price realisation in KG D6. The EBITDA for the segment jumped to Rs 4,766 crore in the reporting quarter, logging an increase of 50 per cent over Rs 3,171 crore in the same period a year earlier.