Reliance Q4 results highlights: Net profit beats estimates; CFO says domestic demand for O2C biz up 4.6% in FY24

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--Net profit rose to Rs 21,243 crore, beating analyst estimates, driven by a recovery in its core oil-to-chemicals (O2C) business.

--Profit attributable to owners of the company stood at Rs 18,951 crore in Q4.

--Revenue of Rs 2.41 lakh crore in the three months ended March 31.

--Dividend of Rs 10 per share declared.

--Consolidated EBITDA rose 14.3 percent to Rs 47,150 crore in the quarter ending March 31, from a year-ago period.

--EBIDTA of the company’s oil-to-chemicals business rose by three percent to Rs 16,777 crore in the March quarter, from Rs 16,293 crore in the year earlier.

--The oil and gas business reported a record quarterly EBITDA of Rs 5,606 crore, a 47.5 percent increase from a year earlier.

--Reliance’s oil and gas revenue rose 42 percent to Rs 6,468 crore mainly on account of higher volumes, partly offset by lower price realisation from KG D6 Field.

--Jio's average revenue per user (ARPU), an important metric to measure the performance of telecom companies, also improved 1.6 percent to Rs 181.7 per user per month from a year earlier.

--For the retail business, EBITDA rose 18.1 percent to Rs 5,632 crore from a year earlier.

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--Reliance Industries Ltd (RIL) becomes the first Indian company to cross the Rs 1 lakh crore threshold in pre-tax profits. Net profit for the fiscal increased by seven percent to Rs 79,020 crore from a year earlier.

--The company reported a record annual consolidated revenue of over Rs 10 lakh crore, driven by continued growth momentum in consumer businesses and upstream business.

--EBITDA rose 16.1 percent to Rs 1.79 lakh crore in the year ended March 31.

--Volatility in crude oil prices could stem from OPEC supply cuts, geopolitics and any attack on energy infrastructure: V Shrikant

--Volatility in crude oil prices could stem from OPEC supply cuts, geopolitics and any attack on energy infrastructure: V Shrikant

--In Q4, global oil demand was up by 1.6 million bpd: CFO V Shrikant
--In the domestic market, overall demand for oil grew by 4.6 percent in FY24: CFO
--Russian diesel exports continued to be resilient: CFO

--We expect gas prices to be more stable going forward and supported by demand: Sanjay Roy, Senior VP, Production and Exploration

--We don't expect any substantial LNG capacity addition till onset of winter 2024: Roy

--Domestic production has seen a sharp increase. The company’s incremental production has majorly come from KG- D6

"Acquisitions and partnerships continues to be a core part of our strategy for our consumer brands business. During the quarter we completed the acquisition of IP rights and trade, including trademarks and recepies for Ravalgaon" - Dinesh Taluja , CFO and Corporate Development, Reliance Retail

--For Jio Mart, our focus was to increase average order values, which were up 30% on a year by year basis, as well as increase the number of units per order, which is up 37% YoY basis: Dinesh Taluja , CFO and Corporate Development, Reliance Retail
--"We also continue to enhance the functionalities of the platform to improve the shopping experience for the customer"

--We saw pretty strong sales in ACs in March and that trend continues. We had the Digital India sales event which saw 15 percent of YOY growth and sales across categories, whether it's mobile phones, whether it's consumer durables, the growth, the growth is quite robust. - Dinesh Taluja , CFO and Corporate Development, Reliance Retail

--On electronics segment consistent trend that we've been seen and disclosing in the last few quarters is growth in average values as well as improving conversion. So, what we see is people are spending more on mobile phones, ACS etc.

--ResQ which is a key differentiator continues to expand its service network. We open 24 new centers during the quarter we have over 1000 centers across the country. And we saw 1.2 million customers with the rescue.

--For Grocery smart and smart bazaars continue to drive sales for Grocery

--All segments (O2C, Oil & Gas, Retail & Jio) delivered strong performance
--Consolidated EBITDA crosses Rs 1.75 lakh crore, Jio Platforms revenue crosses Rs 1 lakh crore and Retail revenue crosses Rs 3 lakh crore
--Fastest 5G adoption globally with more than 100 million subscribers, Retail space crosses 75 Million square feet
--O2C supported by advantageous feedstock sourcing & strong domestic markets
--Capex at Rs 23,207 crore, well covered by cash profit of Rs 37,769 crore

--Quarterly revenue at Rs 142,634 crore ($ 17.1 billion), up 10.9% y-o-y
--Quarterly EBITDA at ₹ 16,777 crore ($ 2.0 billion), up 3.0% y-o-y
-- Revenue was primarily driven by improved price realisation for transportation fuels and higher volumes.

--Quarterly revenue at rs 76,627 crore, up 10.6% y-o-y
--Quarterly ebitda at rs 5,823 crore, up 18.5% y-o-y
--Total footfall of 272 million across formats; 562 new stores opened

“Reliance Retail continues to deliver steady performance led by growth across consumption baskets. We continue to invest and innovate across formats and products to improve our customer value proposition and serve evolving consumer needs. Robust expansion and growth of our retail business signifies our commitment to customer centricity and confidence in India’s consumption story,” said Isha M. Ambani, Executive Director, Reliance Retail Ventures Limited.

"Reliance Retail continued to provide customers endless choices through its robust omni-channel presence. We continue to offer product differentiation and superior offline experience through stores remodelling and revamping of layouts. Our digital commerce platforms also provide newer solutions to users with a broad brand catalogue. Reliance Retail also works towards strengthening millions of merchants through its unique initiatives in new commerce space."

--Reliance Retail Ventures Ltd, the retail arm of Reliance Industries Ltd, said its net profit rose 11.7 percent in the quarter ended March 31, 2024 as compared to Rs 2,698 crore a year ago.

--Gross revenue rose 17.8 percent to Rs 76,627 crore, up 10.6 percent from the year ago period, led by growth in consumer electronics and fashion & lifestyle, said RIL in a stock exchange filing.

"Strong demand for fuels globally, and limited flexibility in refining system worldwide, supported margins and profitability of the O2C segment. 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. The KG-D6 block has achieved 30 MMSCMD of production and now accounts for 30% of India’s domestic gas production"

"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 effort of producing AI-driven solutions, Jio has proved its capability in strengthening the nation’s digital infrastructure."

--Jio's average revenue per user (ARPU) was Rs 181.7 with better subscriber mix partially offset by increasing mix of promotional 5G traffic, offered unlimited to subscribers and not yet charged separately

--108 million+ subscribers migrated to Jio’s 5G network

--Jio True 5G network now carries ~28% of Jio’s wireless data traffic, with the entire 5G data being carried on Jio’s own 5G+4G combo core

--JioAirFiber services are now being offered across ~5,900 cities/ towns

--Akash M Ambani, Chairman of Reliance Jio Infocomm said, “Jio continues to maintain its network leadership and offer 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 industry-leading growth for Jio."

Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries Limited said: “Initiatives across RIL’s businesses have made a remarkable contribution towards fostering growth of various sectors of the Indian economy. It is heartening to note that alongside strengthening the national economy, all segments have posted a robust financial and operating performance. This has helped the Company achieve multiple milestones. I am happy to share that this year, Reliance became the first Indian company to cross the Rs 100,000-crore threshold in pre-tax profits."

RIL announces Rs 10 dividend

--Reliance Industries Limited (RIL) reported 11 percent rise in consolidated revenue from operations at Rs 2.40 lakh crore for the quarter ended 31 March, 2024. The largest Indian company in terms of market share had reported revenue of Rs 2.16 lakh crore in the year-ago period.

--Net profit for the quarter under review came at Rs 18,951 crore as against Rs 19,299 crore last fiscal.

--The numbers were in-line with Street estimates. As per analysts, consolidated revenue was expected to increase 11.4 percent from a year earlier to Rs 2.12 lakh crore, while net profit was expected to drop 5.7 percent to Rs 18,248 crore, according to the average of 10 analyst estimates surveyed by Moneycontrol.

--Meanwhile, shares of Reliance Industries on April 22 closed almost flat at Rs 2,960.60 apiece on BSE.

--As per analysts, RIL is expected to report robust quarterly earnings, driven by a recovery in its core oil-to-chemicals (O2C) business and sustained momentum across the company’s consumer-facing telecom and retail businesses.

--Consolidated revenue is expected to increase 11.4 percent from a year earlier to Rs 2.12 lakh crore, according to the average of 10 analyst estimates surveyed by Moneycontrol.

--Net profit for the quarter, however, is expected to drop 5.7 percent to Rs 18,248 crore on increased depreciation and high tax rate, according to the survey of brokerage estimates.

Reliance Jio announces that Sanjay Mashruwala, aged 76 years, resigns as Managing Director effective June 9, 2024. Pankaj Mohan Pawar continues as Managing Director of the company.

--Reliance Jio will disclose its average revenue per user (ARPU), a key performance metric for telecom firms, and subscriber additions along with parent RIL's results shortly.

--JP Morgan expects subscriber momentum to be better in Q4 compared to the previous quarter, with 1.15 crore net additions. ARPU growth, however, is expected to remain relatively stable compared with the preceding fiscal third quarter.

-- Net profit rises 13% YoY, 3% QoQ to Rs 5,337 crore

--Revenue from ops up 11% YoY, 2.3% QoQ to Rs 25,959 crore

--EBITDA jumps 11% YoY, 2.5% QoQ to Rs 13,612 crore

--Margin up 10 bps QoQ to 52.4%

--Reliance Jio, the telecom arm of Reliance Industries reported 13 percent rise in net profit at Rs 5,337 crore for the quarter ended 31 March, 2024.

--Sequentially, the net profit rose 3 percent from previous quarter.

--Revenue from operations came at Rs 25,959 crore

--Margin at 52.4% vesus 52.3% (QoQ)

--Reliance Jio’s strong subscriber addition trend is likely to continue in Q4FY24, driven by the aggressive push of its Jio Bharat phone.

--JP Morgan expects subscriber momentum to be better in Q4 compared to the previous quarter, with 1.15 crore net additions. ARPU growth, however, is expected to remain relatively stable compared with the preceding fiscal third quarter.

Reliance Industries stock closed 0.68 percent higher at Rs 2,961.50 apiece on BSE ahead of Q4 results scheduled to be declared today. The scrip touched an intra-day high of Rs 2,949.70 per share within a few minutes of the stock market's opening bell. RIL has increased 14.35 percent in year-to-date basis.

--Nuvama Institutional Equities estimates RIL’s oil and gas EBITDA will rise around 41 percent, supported by increased production from the KG-D6 block, although partially offset by a 20 percent decline in deepwater gas prices.

--Centrum noted that earnings for this business are expected to moderate sequentially in the March quarter due to largely stable volumes and pricing. RIL’s exploration and production (E&P) business is expected to see a decline in EBIT due to higher costs.

--Consolidated revenue is expected to increase 11.4 percent from a year earlier to Rs 2.39 lakh crore
--EBITDA to rise 9.4 percent to Rs 42,127 crore, underpinned by robust growth in the O2C business
--Net profit for the quarter, however, is expected to drop 5.7 percent to Rs 18,248 crore on increased depreciation and high tax rate
--Jio may report 1.05 crore net subscriber addition in the January-March quarter
--Reliance Retail’s core retail revenue Rs 55,700 crore, a robust increase of 23 percent on-year, and EBITDA of Rs 6,100 crore, an increase of 28 percent YoY

“The strong uptake of the JioBharat phone and JioAirFiber services has resulted in the continued expansion of Jio’s subscriber base, contributing to the stellar growth numbers of the digital services business,” Mukesh D Ambani, Chairman and Managing Director, said.

--Reliance Industries had posted a 10.9 percent rise in consolidated profit after tax (PAT) during the October-December 2023 quarter at Rs 19,641 crore. In the same quarter of 2022, the profit after tax was Rs 17,706 crore.
--In the three quarters so far in 2023-24 (April-December), the company’s profit after tax rose from Rs 52,443 crore to Rs 57,777 crore.
--For consolidated revenue, Reliance Industries registered a 3.2 percent rise at Rs 248,160 crore supported by continued growth momentum in consumer businesses.
--In the same quarter last financial year, the revenues were Rs 240,532 crore.

Shares of RIL in April 22 were trading almost flat at Rs 2,946.25 apiece on BSE during mid trading session. The scrip touched an intraday high of Rs 2,949.70 per share within a few minutes of the stock market's opening bell before going flat.

In management commentary, investors will look for updates on the company’s new energy business’s commissioning schedule and guidance on capital expenditure and the debt profile. Additionally, clarity on the Rs 75,000 crore worth of announcements in the new energy business, growth in Retail store additions, and any pricing action in telecom will be monitored by investors, according to Motilal Oswal.

--Brokerages expect Reliance Retail to continue showing resilient performance in Q4FY24. The retail EBITDA is seen rising 21-28 percent from a year earlier on account of sustained momentum, higher footfalls and increase in retail area.

--Sequentially, JM Financial sees Retail EBITDA growing by 0.4 percent on a high base of Q3FY24.

--“We estimate Reliance Retail’s core retail revenue Rs 55,700 crore, a robust increase of 23 percent on-year, and EBITDA of Rs 6,100 crore, an increase of 28 percent YoY, with margins for the segment expanding 10 basis points sequentially to 7.4 percent,” said Nomura.

--Reliance Jio’s strong subscriber addition trend is likely to continue in Q4FY24, driven by the aggressive push of its Jio Bharat phone.

--JP Morgan expects subscriber momentum to be better in Q4 compared to the previous quarter, with 1.15 crore net additions. ARPU growth, however, is expected to remain relatively stable compared with the preceding fiscal third quarter.

--JM Financial expects Jio to report 1.05 crore net subscriber addition in the January-March quarter, according to JM Financial.

--This will be the eighth consecutive quarter of net subscriber additions, ranging between 5-11 million per quarter since Q1FY23, the brokerage said, adding that Jio’s ARPU is likely to improve by 0.4 percent sequentially to Rs 182.5 in 4QFY24.

Reliance is likely to see a sharp jump in its O2C segment sequential earnings on improved gross refining margins (GRM), better petrochemical spreads and higher refining throughput. According to JM Financial, RIL’s O2C EBITDA may rise 11.8 percent sequentially to Rs 15,700 crore even though petchem margin is still expected to remain subdued during the fourth quarter

--According to analysts at JP Morgan, Reliance benefits from rising crude prices through its oil production from the fields along the country’s eastern coast, among other ways.

--Net profit for the quarter, however, is expected to drop 5.7 percent to Rs 19,299 crore on increased depreciation and high tax rate, according to the survey of brokerage estimates.