Reliance Industries Limited (RIL) Reports Strong Financial and Operational Performance

Reliance Industries Limited (RIL), the Mukesh Ambani-led Indian conglomerate renowned for its diverse portfolio spanning across industries such as petrochemicals, refining, telecommunications, retail, and digital services, has announced its financial and operational performance for the fourth quarter of fiscal year 2024, showcasing robust growth and positive contributions across key operating segments.

The conglomerate reported a gross revenue of ₹ 1,000,122 crore ($ 119.9 billion) for the fiscal year, reflecting a modest 2.6% year-on-year (Y-o-Y) increase. This growth was supported by continued momentum in consumer businesses and the upstream sector. Revenue for Jio Platforms Limited (JPL) surged by 11.7% Y-o-Y, driven by robust subscriber growth across mobility and homes, while Reliance Retail Ventures Limited (RRVL) witnessed a substantial 17.8% Y-o-Y revenue growth, attributed to strong performance across all consumption baskets.

However, O2C revenue experienced a slight decline of 5.0% Y-o-Y, primarily due to lower product price realization following a decline in average Brent crude oil prices. Nonetheless, revenue from the Oil & Gas segment saw a significant uptick of 48.0%, mainly attributable to higher volumes from the KG D6 block, despite lower gas price realization.

RIL’s earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by 16.1% Y-o-Y to ₹ 178,677 crore ($ 21.4 billion), with positive contributions from all key operating segments. JPL and RRVL reported impressive EBITDA growth of 12.8% and 28.5% Y-o-Y, respectively, while the O2C and Oil and Gas segments also demonstrated robust performance.

However, depreciation expenses increased by 26.1% Y-o-Y to ₹ 50,832 crore ($ 6.1 billion), reflecting an expanded asset base across all businesses. Finance costs rose by 18.1% Y-o-Y to ₹ 23,118 crore ($ 2.8 billion), while tax expenses increased by 26.2% Y-o-Y to ₹ 25,707 crore ($ 3.1 billion) due to utilization of tax credits in the previous financial year.

Despite these factors, RIL reported a 7.3% Y-o-Y increase in profit after tax, reaching ₹ 79,020 crore ($ 9.5 billion) for the fiscal year. The company’s capital expenditure for the year ended March 31, 2024, amounted to ₹ 131,769 crore ($ 15.8 billion), reflecting investments in pan-India 5G roll-out, expansion of retail infrastructure, and new energy business.

For the fourth quarter of FY2024, RIL reported a gross revenue of ₹ 264,834 crore ($ 31.8 billion), up 10.8% Y-o-Y, driven by double-digit growth in the O2C and consumer business segments. EBITDA increased by 14.3% Y-o-Y to ₹ 47,150 crore ($ 5.7 billion), with strong contributions from all businesses. Depreciation expenses increased by 18.5% Y-o-Y to ₹ 13,569 crore ($ 1.6 billion), while tax expenses saw a sharp increase due to availing tax credits in the corresponding quarter of the previous year. Profit after tax improved marginally Y-o-Y to ₹ 21,243 crore ($ 2.5 billion), with capital expenditure for the quarter amounting to ₹ 23,207 crore ($ 2.8 billion).