Reliance's quarterly profit rises 14% to ₹22,000cr, revenue up 10%
What's the story
Reliance Industries Limited (RIL) has reported a 14.3% increase in its quarterly net profit, amounting to ₹22,092 crore (pre-minority interest). The growth is largely driven by improved refining margins and the continued expansion of its retail and digital services businesses. The company's consolidated revenue also saw a 10% year-on-year (YoY) rise to ₹2.84 lakh crore, with consumer-facing segments leading the way.
Information
EBITDA grows by 14.6% to ₹50,367 crore
RIL's consolidated EBITDA stood at ₹50,367 crore, marking a 14.6% increase from the previous year. This growth was mainly driven by the company's oil-to-chemicals (O2C), retail, and digital services businesses. The company's profit before tax also saw a remarkable 16.3% jump to ₹29,124 crore.
Financial stability
Capital expenditure and net debt remain stable
RIL reported a higher capital expenditure of ₹40,010 crore for the quarter, which was fully funded by strong internal cash flows. The company's cash profit stood at ₹40,778 crore while its net debt remained largely unchanged at ₹1.19 lakh crore as of September 30. This is slightly up from ₹1.18 lakh crore as of June 30, indicating a stable financial position for the company during this period.
Business expansion
O2C business reports robust growth
The O2C business' EBITDA grew by 20.9% to ₹15,008 crore, driven by a sharp recovery in transportation fuel cracks and improvement in polymer margins. Reliance's production for sale during the quarter increased by 2.3% to 18.1 million tons, while its O2C business achieved an all-time high quarterly throughput of 20.8 million tons, up 3% YoY.
Business performance
Digital services and retail businesses show impressive growth
Reliance's digital services revenue grew by 15% YoY to ₹42,652 crore, driven by a growing subscriber base and improved average revenue per user (ARPU). The segment's EBITDA grew by 17.7% to ₹18,757 crore with a margin expansion of 140 basis points. Meanwhile, the retail business also posted an impressive 18% year-on-year growth in revenue to ₹90,018 crore, with all formats contributing significantly.