Mukesh Ambani-led Reliance Industries’ consolidated profit fell four percent to Rs 17,448 crore in the first quarter of fiscal 2024-25. 18,182 crore in the corresponding quarter of the previous financial year. Profits were hit by weak growth in the company’s core business, Oil to Chemicals (O2C).
During this period, revenue increased by 11.5 percent to Rs 2.57 lakh crore. Higher oil and gas prices, strong growth in these businesses and sustained growth in consumer businesses contributed to the revenue growth.
Earnings before tax and interest (EBITDA) increased by 2.0 percent to Rs 42,748 crore during the period.
Performance of various categories
Revenue in the Reliance O2C segment grew by 18.1 percent to Rs 157.133 crore. Earnings were boosted by a nine percent rise in Brent crude prices and higher sales on higher demand. In the oil and gas segment, profit before tax, etc. increased by 29.8 percent to Rs 5,210 crore. Reliance Retail’s profit rose 4.6 percent to Rs 2,549 crore during the period. The number of people who visited retail shops stood at 2.96 crore in the June quarter. 19 percent higher than the corresponding period of the previous financial year. The company’s registered retail customer base stands at 3.16 crore.
The digital services segment’s profit rose 11.7 percent to Rs 5,698 crore in the June quarter. The profit of Jio Platforms under Reliance is at a record of Rs 5,698 crore. 5,101 crore in the same quarter of the previous fiscal, an increase of 11.7 percent. Operating income rose to Rs 29,449 crore from Rs 26,115 crore. The increase is 12.8 percent. The average revenue from users was Rs.181.70. 80 lakh subscribers were added in the first quarter.
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Net debt decreased
Reliance’s capital expenditure for the quarter ended June 30, 2024 was Rs 28,785 crore. Reliance’s consolidated gross debt fell to Rs 3.04 lakh crore from Rs 3.24 lakh crore in the March quarter and net debt to Rs 1.12 lakh crore from Rs 1.16 lakh crore. However, there has been a decrease of Rs 15,745 crore in cash equivalent assets.
Reliance’s quarterly results came out after the close of trading yesterday. This will be reflected in the stocks on Monday. Yesterday, the stock closed down at Rs 3,116.95, down nearly two per cent. Reliance shares have given investors over 20 percent gains so far this year.
