Reliance Industries Q1 Results: Net Profit Falls 11 Per Cent To Rs 16,011 Crore

Reliance Industries Q1 Results: Net Profit Falls 11 Per Cent To Rs 16,011 Crore

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Reliance Industries (RIL) on Friday reported an 11 per cent drop in consolidated net profit for the quarter ended June 30, 2023. Mukesh Ambani-led Reliance reported a consolidated net profit of Rs 16,011 crore for the first quarter of FY24 down for Rs 17,955 crore reported in the same period last year. The company said this drop in profit was mainly on the account of “higher finance cost and increased depreciation.”

In a regulatory filing, the company said, “Revenue from operations fell to Rs 2.1 trillion from Rs 2.22 trillion in the year-ago period and Rs 2.16 trillion in January-March 2023.”

On Friday, Reliance Industries fell 2.57 per cent to Rs 2536.20 a piece on the BSE. The company’s board has declared a dividend of 9 per equity share for fiscal 2022-23.

The company said that the revenue fell primarily on account of a sharp reduction in crude oil prices and lower price realisation of downstream products. This was partially offset by higher volumes. Oil-to-chemical (O2C) was impacted by a 60-70 per cent year on year decline in fuel cracks due to the energy market dislocation in the year-ago quarter.

The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at Rs 38,093 crore in Q1 FY24 against Rs 37,997 crore reported in Q1 FY22. EBITDA margin stood at 18.3 per cent. 

“EBITDA growth was led by consumer and upstream businesses, which offset decline in O2C earnings. O2C earnings were lower due to a sharp fall in fuel cracks from exceptionally high levels in 1Q FY23. Higher subscriber base and customer engagement led revenue and profitability growth for Digital Services. Retail earnings reflect expanded footprint and improved profitability with operating leverage. Higher production and realizations contributed to growth in Oil & Gas EBITDA,” the company said in an exchange filing. 

RIL Chairman Mukesh Ambani said, “Reliance’s strong operating and financial performance this quarter demonstrates the resilience of our diversified portfolio of businesses that cater to demand across industrial and consumer segments.”

Mukesh Ambani-led Reliance Industries telecom arm Reliance Jio on Friday posted over 12 per cent rise in net profit to Rs 4,863 crore in the June 2023 quarter, the company said in a regulatory filing. Jio had clocked a net profit of Rs 4,335 crore in the same period a year ago. The total income of Reliance Jio during the reported quarter rose to Rs 24,127 crore from Rs 21,995 crore a year ago.

Jio’s revenue from operations increased by 9.9 per cent to Rs 24,042 crore during the reported quarter from Rs 21,873 crore in the June 2022 quarter. Sequentially, it rose 2.76 per cent from Rs 23,394 crore in the previous quarter, the telecom major said in release.

The telco has been investing heavily in network infrastructure to grab a bigger market share. It launched a cheap 4G feature phone to tap the country’s vast remote markets, which are still on slower mobile networks earlier this month. The launch of the phone is seen as a way to avoid any hit to its overall subscriber base from a likely tariff hike in September, according to Ambit Capital.

Akash M Ambani, Chairman, Reliance Jio Infocomm Limited, said, “Jio continues to make rapid progress in rolling out its True5G network. Jio is on track to complete pan India 5G rollout before December 2023. The new JioBharat phone is another innovation by Jio combining network and device capabilities to help accelerate ‘2G-MUKT BHARAT’ vision and democratize internet. With these investments, Jio is embarking on a journey to accelerate growth momentum across connectivity and digital platforms over the coming years.

Also Read: Reliance Jio Q1 Result: Telco’s Net Profit Jumps 12 Per Cent To Rs 4,863 Crore

Reliance’s Oil To Chemical (O2C) Segment Revenue Falls 17.7 Per Cent

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