Reliance Industries Q3 Earnings: Robust Performance from Jio and Retail; O2C Revenue Declines; Key Highlights

Reliance Industries (RIL) reported strong financial results for the third quarter of FY24, with its telecom and retail segments driving revenue and profitability. However, the company’s oil-to-chemicals (O2C) division experienced a decline in revenue due to lower price realizations caused by a drop in average Brent crude oil prices.

RIL’s consolidated profit after tax (PAT) for the quarter increased by 10.9% YoY to ₹19,641 crore. The company’s gross revenue rose by 3.2% YoY to ₹2,48,160 crore, led by continued growth in its consumer businesses.

The telecom arm, Jio Platforms, exhibited remarkable performance, with revenue from operations growing by 11.3% YoY to ₹27,697 crore. Net profit for Jio increased by 11.6% to ₹5,445 crore. The robust growth was driven by increased subscriber numbers and improved average revenue per user (ARPU).

Reliance Retail, the conglomerate’s retail segment, achieved gross revenue of ₹83,063 crore during the quarter, marking a YoY growth of 22.8%. The company expanded its store network and witnessed footfalls of over 282 million across various formats, indicating a 40.3% YoY increase.

In contrast, the O2C segment’s revenue declined by 2.4% YoY to ₹1,41,096 crore. This drop was mainly attributed to lower price realizations caused by a 5.3% YoY decline in average Brent crude oil prices. However, O2C segment’s EBITDA increased marginally by 1% YoY to ₹14,064 crore.

The exploration and production (E&P) division saw a significant increase in revenue of 50.2% YoY, primarily due to higher volumes. Consolidated EBITDA was impacted by investments made by Viacom18 in its sports and digital business verticals.

Reliance Industries also highlighted the strong growth of its TV News and Digital News businesses, which achieved revenue growths of 23% and 20% YoY, respectively.