RIL Q1 Results Highlights: Revenue up 11.5% YoY; Jio sees record PAT at Rs 5,698 crore

“During the quarter, we launched products across multiple brands including Maliban, Ravalgaon, Campa, etc. The idea is to have expanded portfolio at attractive price points, and there are multiple pilots underway. So, across different categories, through a host of product launches in the coming quarters, we will further enhance our product portfolio,” says Dinesh Taluja, Chief Financial Officer and Corporate Development at Reliance Retail.

If there is a ban on Russian gasoline exports, that could impact deltas on gasoline: RIL CFO Srikanth Venkatachari

Markets have been volatile due to geopolitical tensions in Middle East and Russia-Ukraine war: CFO

--RIL CFO Srikanth Venkatachari: Continuing benefits from ethane cracking supported the quarter in O2C segment.

--Strong demand from emerging market and OPEC+ supply on the lower side kept crude prices up in Q1, says CFO

--Global oil demand is expected to normalise this year, says CFO

India gas demand looks robust, CGD demand also went up:Sanjay Roy, executive vice-president for exploration and production, RIL

We are also investing in strengthening the supply chain across categories through partnering with different players so that we have localized supply chain, which will give us a big cost advantage over other FMCG companies.- Dinesh Taluja, Chief Financial Officer and Corporate Development at Reliance Retail.

BFSI continues to be a very strong vertical for Jio's enterprise business. We have tied up with some BFSI clients to do more beyond connectivity and some enterprise offering: Anshuman Thakur, Head of Strategy, Reliance Jio Infocomm

Jio 's free 5G is available at no additional cost to subscribers who subscribed to certain plans. This is to encourage 5G consumption on the network and people to adopt more 5G: Thakur

There may be some transient impact of tariff hikes on consumer behaviour, but in longer terms, this is going to be good for the overall telecom industry: Thakur

--EBITDA Margin from operations at 8.2% for Q1FY25, up 30 bps YoY, all our operational metrics with its registered customers, transactions show healthy growth trend: Dinesh Taluja, Chief Financial Officer and Corporate Development at Reliance Retail:

--EBITDA grew 10.5 percent YoY to Rs 5,664 crore led by increase in footfalls and expansion of store footprint, streamlining of operations which is driving the margin improvement: Taluja

We have expanded our wallet share beyond connectivity. Enterprise offering is a combination of connectivity with value-added services: Anshuman Thakur, Head of Strategy, Reliance Jio Infocomm.

--We focused on the acquired spectrum only in case where we had seen demand and data consumption go up: Anshuman Thakur, Head of Strategy, Reliance Jio Infocomm

--In the longer term, tariff hikes will be good for the overall telecom industry and help build a premier digital society and strengthen the overall sector: Thakur

--In the enterprise space, we have been making inroads in key verticals: Thakur

Anshuman Thakur, Head of Strategy, Reliance Jio Infocomm: Overall tariff have gone up in the industry. There may be some transient impact, but we think in the longer term, this is going to be good for the overall telecom industry and help build a premier digital society and strengthen the overall sector.

Anshuman Thakur, Head of Strategy, Reliance Jio Infocomm: ARPU increase in Q1FY24 does not take into account the tariff revision.

RIL CFO Srikanth Venkatachari: Sharp decline in O2C earnings dragged overall performance on a quarter on quarter basis.

RIL CFO Srikanth Venkatachari: In O2C, margins declined in some products but was partially offset by the fact that we continue to benefit from advantageous ethane vs naphtha cracks and strong domestic demand.

At Reliance's press conference post earnings report, RIL CFO Srikanth Venkatachari says,"In retail, we continue to focus on enhancing the tech platform, focus on supply chain and distribution capabilities. We are strengthening the market leadership in a structurally long term growth industry."

"The deep integration and flexibility built into our O2C business model helped mitigate the impact of challenging operating environment. The business was impacted by lower fuel cracks with tepid global demand and ramp-up of new refineries. The oil and gas segment continued its growth trajectory with higher production, offsetting lower year-on-year gas price realizations.

Reliance has made significant progress on the implementation of New Energy Giga-factories. On completion, these projects will provide India a world-class, integrated green energy ecosystem which can propel the next leg of sustainable growth.”

"Retail business delivered robust financial results, as compared to last year, well supported by all consumption baskets. With fast-paced expansion of its retail footprint, Reliance Retail continues to cement its position as the preferred retailer for millions of Indians. The digital and new commerce segments are also scaling up rapidly. Reliance Retail is focused not only on providing quality products to customers, but also on enhancing overall customer experience, both during and after sales."

"The digital services business registered an impressive financial performance year-on-year, continuing its positive growth momentum. Jio’s True 5G network, covering ~85% of India’s 5G capacity, continues to attract users, while the fixed broadband offerings are witnessing increasing consumer traction both in homes and enterprises. The attractive value proposition offered by Jio is enabling more Indians to transition to next-gen data networks. This is further accelerating the digital revolution which is reshaping communications, analytics and computing, media and entertainment and commerce in India. Jio is committed to provide the best-quality state-of-the-art network at most affordable prices globally."

“Consolidated EBITDA for the quarter improved from a year ago with strong contribution from Consumer and Upstream businesses offsetting weak O2C operating environment. Reliance’s resilient operating and financial performance in this quarter underscores the strength of its diverse portfolio of businesses. Importantly, these businesses are contributing significantly to India’s growth, providing vital energy and vibrant channels for digital and physical distribution of goods and services."

--The Oil & Gas segment revenue for the quarter was higher by 33.4% YoY at Rs 6,179 crore, mainly on account of higher volumes, partly offset by lower price realisation from KG D6 and CBM Field

--The Oil & Gas segment’s quarterly EBITDA increased to Rs 5,210 crore which was up by 29.8% on YoY basis. EBITDA margin was at 84.3% for 1Q FY25

--The average KGD6 Production for the 1Q FY25 was 28.7 MMSCMD of gas and 21,640 bbl per day of Oil / Condensate

--Reliance’s O2C Segment Revenue for the quarter increased by 18.1% YoY to Rs 157,133 crore ($18.8 billion) primarily on account of higher product prices tracking ~9% increase in Brent crude oil prices, and higher volumes supported by strong domestic demand.

--Reliance’s O2C Segment EBITDA for 1QFY25 was lower by 14.3% YoY at Rs 13,093 crore ($1.6 billion) due to lower transportation fuel cracks, particularly gasoline cracks which was down 30% YoY.

--Downstream chemical margins were also lower 15%-17% on YoY basis.

--Reliance Retail’s Gross Revenue for the June 2024 quarter grew 8.1% YoY to Rs 75,615 crore

--Reliance Retail’s quarterly EBITDA at Rs 5,664 crore which was up by 10.5% YoY, led by increase in footfalls and expansion of store footprint, streamlining of operations driving margin improvement

--Reliance Retail expanded its store network with 331 new store openings taking the total store count to 18,918, with area under operation at 81.3 million sq. ft. The quarter recorded footfalls of over 296 million, a growth of 18.9% YoY

--The registered customer base grew to 316 million, making Reliance Retail one of the most preferred retailers in the country. The total transactions recorded were at 334 million, up 6.4% YoY

--Jio Platforms’ EBIDTA for quarter ended June 2024 increased by 11.6% YoY to Rs 14,638 crore

--Jio’s net profit for the quarter grew 11.7% YoY to Rs 5,698 crore

--Jio continued to lead the industry and gain subscriber share with 8.0 million net additions to 489.7 million.

--JioAirFiber drove the highest ever quarterly home connects for Jio with over 1.1 million net additions

--Jio’s ARPU was Rs 181.7 with better subscriber mix, partially offset by increasing mix of promotional 5G traffic being offered on an unlimited basis to subscribers and not charged separately.

--Jio’s customer engagement levels continued to remain strong with total data traffic increasing by 32.8% to 44.1 billion GB, and voice traffic increasing 6.0% YoY to 1.42 trillion minutes

--Jio is the largest 5G operator outside China with ~ 130 million 5G subscribers accounting for over 31% of Jio’s wireless data traffic.

--The entire 5G data is being carried on Jio’s own 5G+4G combo core

--Reliance posted consolidated revenues at Rs 257,823 crore ($30.9 billion), up 11.5% Y-o-Y, led by higher oil prices and volumes in O2C and Oil & Gas segments with steady growth in consumer businesses

--Reliance’s consolidated EBITDA increased by 2 Y-o-Y to Rs 42,748 crore ($5.1 billion). Strong contribution from oil & gas and consumer business offset weak O2C

--Reliance’s consolidated Profit after tax decreased 4% Y-o-Y to Rs 17,448 crore ($2.1 billion), largely due to higher depreciation

--Capital Expenditure for the quarter ended June 30, 2024, was Rs 28,785 crore ($3.5 billion)

--RIL’s consolidated Net Debt as of 30th June 2024 was marginally lower at Rs 112,341 crore as against Rs 116,281 crore as of 31st March 2024. Net debt to EBITDA ratio improved to 0.66, from 0.76 a year ago

Reliance Industries Ltd (RIL) reported an 11.5 percent increase in revenue to Rs 2.58 lakh crore in the fiscal first quarter from a year ago, bolstered by contributions across segments.

Consolidated EBITDA (earnings before interest, taxes, depreciation, and amortization) rose 2 percent from a year earlier to Rs 42,748 crore. The company’s net profit (pre minority) for the quarter ended June 30 dropped 4.5 percent to Rs 17,445 crore, primarily due to increased depreciation expenses.

The oil and gas business’s EBITDA surged by 30% due to higher production volume. Operating profits for Jio Platforms Ltd and Reliance Retail Ltd rose 11.6% and 10.5%, respectively.

Read more here

Analysts will monitor the performance of RIL's O2C segment, particularly the impact of lower GRMs on profitability. Additionally, updates on subscriber additions and ARPU growth in the telecom segment, as well as footfall and store addition metrics in the retail segment, will be crucial. Investors will also be looking for any announcements related to the progress of 5G rollout and potential impacts of recent tariff hikes on future earnings.

RIL's consolidated revenue for the quarter ended June 30 is expected to rise 12.7 percent from a year earlier to Rs 2.36 lakh crore, while net profit is expected to expand by 0.6 percent to Rs 16,082 crore, according to a Moneycontrol survey.

Reliance Jio Infocomm Ltd, the telecom arm of Reliance Industries Ltd (RIL), recorded increase net profit at Rs 5,445 crore for the first quarter of financial year 2024-2025. The company had posted a net profit of Rs 5,337 crore in the previous quarter and Rs 4,863 crore in the year-ago period.

Revenue from operations rose to Rs 26,478 crore in the June quarter as against Rs 25,959 crore in the pervious quarter and Rs 24,042 crore in the same quarter last fiscal.

Telecom arm Reliance Jio continued to expand its subscriber base, adding as many as 9 million users in the June quarter, according to analysts.

The monthly average revenue per user, or ARPU, is set to see a slight increase, contributing to quarter-on-quarter growth in revenue and EBITDA.

Jio added 9 million subscribers in the year-earlier June quarter.

At closing bell, Reliance Industries Ltd stock traded at Rs 3,116.95 apiece, down 1.78 percent

RIL to declare it Q1FY25 results shortly today.

Reliance Jio Infocomm Ltd, the telecom unit of Reliance Industries Ltd, could be headed for a mega IPO in 2025, with a potential valuation of more than Rs 9.3 lakh crore, a Jefferies note said.

Jio 'could list at $112 billion valuation' and add '7-15 percent upside' to the Reliance Industries share price, Jefferies said in the note on July 11.

Reliance Industries Ltd stock was trading in red down 1.5% at Rs 3,127.40 apiece

RIL to declare it Q1FY25 results shortly.

"We expect RIL to post 4 percent year on year EBITDA (earnings before interest, taxes, depreciation, and amortisation) growth as consumer businesses and oil & gas production offset the decline in O2C margins," analysts at BOB CAPS said in a note to clients.

They noted that margins across various segments are now normalising.

Reliance Industries Ltd (RIL) is expected to post modest quarterly earnings growth on July 19, bolstered by robust performances in its telecom and retail segments and steady oil and gas production.

Analysts will monitor the performance of RIL's O2C segment, particularly the impact of lower GRMs on profitability.

Additionally, updates on subscriber additions and ARPU growth in the telecom segment, as well as footfall and store addition metrics in the retail segment, will be crucial.

Investors will also be looking for any announcements related to the progress of 5G rollout and potential impacts of recent tariff hikes on future earnings.

The retail segment is anticipated to witness ongoing growth driven by increased footfalls and new store additions.

EBITDA for retail is projected to grow by 16 percent from a year earlier.

The previous year saw a similar trend with significant revenue growth.

Reliance Industries Ltd stock was trading in red down 1.5% at Rs 3,123.40 apiece

RIL to declare it Q1FY25 results today.

The O2C segment is expected to drag down overall performance due to a significant correction in GRMs, which narrowed to $3-4 per barrel in the June quarter from $7-8/bbl in the March quarter.

This decline is expected to result in a 19-21 percent drop in O2C EBITDA from the preceding three months.

Brokerage Morgan Stanley said Reliance Industries Ltd could boost its market capitalisation by as much as $100 billion in its fourth monetisation cycle, driven by new cash flow streams and improved valuation multiples.

Over the past three decades, RIL has delivered 2-3x returns for shareholders, with each decade adding over $60 billion in market value.

Full report here.

Reliance Industries Ltd's market value has surpassed Rs 21 lakh crore following a more than 20 percent stock surge this year, becoming the first Indian company to reach this milestone on June 28.

Reliance Jio Infocomm Ltd, the telecom unit of Reliance Industries Ltd, could be headed for a mega IPO in 2025, with a potential valuation of more than Rs 9.3 lakh crore, a Jefferies note said.

Jio 'could list at $112 billion valuation' and add '7-15 percent upside' to the Reliance Industries share price, Jefferies said in the note on July 11.

Analysts will monitor the performance of RIL's O2C segment, particularly the impact of lower GRMs on profitability.

Additionally, updates on subscriber additions and ARPU growth in the telecom segment, as well as footfall and store addition metrics in the retail segment, will be crucial.

Investors will also be looking for any announcements related to the progress of 5G rollout and potential impacts of recent tariff hikes on future earnings.

The O2C segment is expected to drag down overall performance due to a significant correction in GRMs, which narrowed to $3-4 per barrel in the June quarter from $7-8/bbl in the March quarter.

This decline is expected to result in a 19-21 percent drop in O2C EBITDA from the preceding three months.

The upstream oil and gas segment is expected to show steady performance, with margins now normalising, BOB CAPS said.

The strong performance of the oil & gas segment is seen as helping offset the decline in O2C margins.

The retail segment is anticipated to witness ongoing growth driven by increased footfalls and new store additions.

EBITDA for retail is projected to grow by 16 percent from a year earlier.

The previous year saw a similar trend with significant revenue growth.

Shares of RIL were down 0.71 percent at Rs 3,152.50 apiece on July 19 at 9.22am.

RIL to declare its Q1 results today.

Telecom arm Reliance Jio continued to expand its subscriber base, adding as many as 9 million users in the June quarter, according to analysts.

The monthly average revenue per user, or ARPU, is set to see a slight increase, contributing to quarter-on-quarter growth in revenue and EBITDA.

Jio added 9 million subscribers in the year-earlier June quarter.

RIL's consolidated revenue for the quarter ended June 30 is expected to rise 12.7 percent from a year earlier to Rs 2.36 lakh crore, while net profit is expected to expand by 0.6 percent to Rs 16,082 crore, according to a Moneycontrol survey.