RIL Q4 net dips 1.8% on higher expenses; oil revenue surges
Reliance Industries posted a consolidated net profit of ₹18,951 crore in the fourth quarter of FY24, down 1.8 per cent on year while revenue rose 11.1 per cent to ₹2.4-lakh crore, led by double-digit growth in its oils-to-chemicals and consumer businesses.
Higher expenses at ₹2.2lakh crore, up 11.8 per cent on year and weak downstream margins dented profitability.
According to the company, the EBITDA margin for the quarter rose 50 basis points on year to 17.8 per cent. The company reported an EBITDA of ₹47,150 crore, up 14.3 per cent on year.
For FY24, Reliance reported a profit after tax of ₹69,621 crore, up from ₹66,702 crore year ago, while revenue (from operations) rose 2.6 per cent to ₹9.14lakh crore. On a gross basis, the revenue topped ₹10-lakh crore.
RETAIL LANDMARK
The highlight of the year was the net profit of Reliance Retail crossing the ₹10,000crore and revenue the ₹3lakh-crore mark. The fullyear profit of Jio Platforms crossed the ₹20,000-crore milestone.
The conglomerate ended the year with a net debt of ₹1.2-lakh crore, down ₹9,485 crore from year ago, due to the moderation in capex post 5G rollout. Capital expenditure in Q4 was ₹23,207 crore and for the full year ₹1.3-lakh crore.
O2C SEGMENT SHINES
RIL’s dominant oils-tochemicals business reported better-than-expected revenue of ₹1.4-lakh crore, up 10.9 per cent on year, on improved realisation in the transportation fuels segment and higher volumes.
“Strong demand for fuels globally, and limited flexibility in refining system worldwide, supported margins and profitability of the O2C segment,” said Chairman and Managing Director Mukesh Ambani.
“Downstream chemical industry experienced increasingly challenging market conditions through the year. Despite headwinds, maintaining leading product positions and feedstock flexibility through our operating model that prioritises cost management, we delivered a resilient performance,” he added. However, the EBITDA margin fell 90 bps to 11.8 per cent on fall in fuel cracks.
For the full year, the O2C revenue was down 5 per cent at ₹5.65-lakh crore on lower product realisation and a dip in Brent crude oil prices.
The oils and gas business reported a 42 per cent rise in revenue, at ₹6,468 crore, on higher KG D6 block volumes.
MORE USERS ON JIO
Jio Platforms profit rose 12 per cent to ₹5,583 crore in Q4 with revenue up 13.4 per cent at ₹28,871 crore. Adding 10.9 million subscribers in Q4, Jio ended the year with 481.8 million subscribers.
The average revenue per user, or ARPU, a key metric in the telecom sector, was flat sequentially at ₹181.7, but up 1.6 per cent on year. The better subscriber mix was partially oset by increasing promotional 5G traªc that was not charged separately.
RELIANCE RETAIL
Reliance Retail Ventures revenue rose 9.8 per cent to ₹67,610 crore in Q4, led by growth in consumer electronics, fashion, and lifestyle.
Reliance Jio Platforms reported a 12 per cent increase in its consolidated net profit for the fourth quarter ended March 31, 2024, to ₹5,583 crore compared with ₹4,984 crore in the same quarter last year. Revenue from operations was up 13.4 per cent to ₹28,871 crore(₹25,465 crore).
“Performance of the digital services segment has been boosted by accelerated expansion of subscriber base, supported by both mobility and fixed wireless services. With over 108 million
True 5G customers, Jio truly leads the 5G transformation in India. From upgrading the hitherto 2G users to smartphones, to leading the eort of producing AI-driven solutions, Jio has proved its capability in strengthening the nation’s digital infrastructure,” said Mukesh Ambani, Chairman, RIL
REVENUE METRICS
Jio added 10.9 million net subscribers during Q4 FY24 taking the total user base to 481 million. Monthly churn was 1.5 per cent. Average revenue per user, however, grew only 1.6 per cent to ₹181.7 per month. This was due to an increasing mix of
promotional 5G traªc, oered unlimited to subscribers and not yet charged separately. Jio has rolled out its 5G network across India, with 108 million subscribers migrating to 5G network. The 5G network now carries 28 per cent of Jio’s wireless data traªc, with the entire 5G data being carried on Jio’s own 5G+4G combo core.
JioAirFiber services, the wireless home broadband services using 5G network, are now being oered across 5,900 cities/ towns, with further ramp-up towards panIndia coverage soon. “Customer demand and engagement have been strong with JioAirFiber’s unique proposition as an entertainmentfirst product bundled with world-class broadband connectivity. Average daily data usage for AirFiber subscribers is at 13 GB, which is 30 per cent higher than JioFiber subscribers,” the company said.
Akash M Ambani, Chairman of Reliance Jio Infocomm, said, “Jio continues to maintain its network leadership and oer innovative digital solutions to multiple customer cohorts. This is driving consistent outperformance in terms of subscriber additions and engagement levels. Continued acceleration in growth of JioAirFiber subscriber base and ramp-up of digital services will sustain industryleading growth for Jio.”