Reliance Industries Q4 Results: Profit Dips 2%; Clocks Record Annual Earnings At Rs 69,621 Crore

Reliance Industries Q4 Results: RIL also became the first Indian company to hit Rs 10 lakh crore turnover in FY24 when revenue from operations rose 2.6 per cent from Rs 9.74 lakh crore in 2022-23

Reliance Industries Q4 Results: RIL on Monday reported 1.80 per cent year-on-year (YoY) fall in its consolidated net profit for the March quarter, but annual earnings reached an all-time high, driven by a recovery in its core oil and petrochemicals business and consistent growth across its consumer-facing telecom and retail sectors. For the fourth quarter of the 2023-24 fiscal year, Reliance's consolidated net profit stood at Rs 18,951 crore, or Rs 28.01 per share. This is slightly lower than the Rs 19,299 crore, or Rs 28.52 per share, reported during the same quarter last year. However, quarter-on-quarter, the profit was higher compared to Rs 17,265 crore in the October-December period.

The full fiscal year, from April 2023 to March 2024, saw Reliance posting a record net profit of Rs 69,621 crore, up from Rs 66,702 crore in the previous fiscal year. The company also became the first Indian firm to achieve a Rs 10-lakh crore turnover, with revenue from operations rising 2.6 per cent from Rs 9.74 lakh crore in 2022-23.

Oil-to-Chemicals

Reliance's oil-to-chemicals (O2C) business, a major profit generator, saw an increase in profitability both annually and sequentially. The retail business also posted earnings growth due to new store openings, even with a decrease in footfalls. The company, led by billionaire Mukesh Ambani, witnessed a rise in telecom revenues thanks to subscriber additions and increased data traffic.

Quarterly EBITDA (earnings before interest, taxes, depreciation, and amortization) rose by 14.3 per cent YoY to Rs 47,150 crore, with growth across all business segments. Revenue from operations also increased nearly 11 per cent to Rs 2.64 lakh crore.

The O2C business experienced an 11 per cent rise in revenue and a 3 per cent increase in EBITDA to Rs 16,777 crore in Q4. This growth was attributed to favorable feedstock sourcing for the refining business and the use of ethane for chemical production.

Jio Earnings

Reliance Jio Infocomm Ltd, the company's digital services arm, reported a 12 per cent increase in net profit, reaching Rs 5,583 crore in the fourth quarter of FY24. This was supported by a growing consumer base of 481.8 million and steady per-user revenues of Rs 181.7. Data traffic also surged to 40.9 billion GB from 38.1 billion GB in the previous quarter.

For the full year, Jio's profit reached Rs 21,424 crore, up from Rs 19,124 crore in FY23. Meanwhile, profits from the retail business increased by 11.7 per cent to Rs 2,698 crore as the store count rose to 18,836.

Oil and Gas 

The oil and gas segment saw a 47.5 per cent increase in EBITDA to Rs 5,606 crore, due to higher gas volumes that offset lower price realisation. The firm's flagship KG-D6 block in the Krishna Godavari basin is now producing about 30 million standard cubic meters per day of gas and 23,000 barrels per day of oil/condensate.

Reliance's debt rose to Rs 3.24 lakh crore from Rs 3.11 lakh crore at the end of December, but net debt decreased to Rs 1.16 lakh crore as of March 31.

Chairman and Managing Director Mukesh Ambani said that all business segments showed strong financial and operational performance, leading to the achievement of several milestones. He noted that the company became the first Indian firm to surpass Rs 1 lakh crore in pre-tax profits.

The digital services segment benefited from rapid subscriber base expansion and the growth of both mobility and fixed wireless services. Ambani highlighted that Reliance Retail continued to offer customers a wide variety of choices through its robust omni-channel presence.

Ambani also pointed out that global fuel demand and limited refining flexibility worldwide supported margins and profitability for the O2C segment. Despite challenges in the downstream chemical industry, Reliance's focus on cost management and leading product positions helped deliver resilient performance. "We remain committed to our projects and initiatives, including those in the new energy segment, which will bolster the company and help it achieve sustainable growth for the future," Ambani added.