Reliance Industries Q2 FY24 results: Significant profit growth and enhanced 5G roll-out

Reliance Industries Limited highlighted a substantial quarterly consolidated EBITDA at ₹ 44,867 crore ($ 5.4 billion), marking a 30.2% year-on-year rise. Furthermore, the net profit surged by 29.7% Y-o-Y, settling at ₹ 19,878 crore ($ 2.4 billion).

Breakdown of Reliance Industries Revenue Sources

The company’s gross revenue amounted to ₹ 255,996 crore ($ 30.8 billion), an upswing of 1.2% Y-o-Y. This has been driven by continuous growth in consumer businesses, especially with:

•   Jio Platforms Limited (JPL) revenue increasing by 10.6% Y-o-Y due to a 7.5% growth in its subscriber base and an elevated ARPU.
•   Reliance Retail Ventures Limited (RRVL)’s revenue growing by 18.8% Y-o-Y, with Food & Grocery sectors showing a 33% growth.
•   Oil & Gas segments showed notable revenue jumps with the incremental production from the MJ field.
•   However, there was a 14% decline in the O2C revenue due to a decrease in crude oil prices.

Key Financial Figures from Reliance Industries Q2 FY24 results

• EBITDA saw a significant rise of 30.2% Y-o-Y, with JPL showcasing an 80 bps margin improvement due to robust net subscriber addition and increased data traffic.
• The quarter’s capital expenditure was recorded at ₹ 38,815 crore ($ 4.7 billion), highlighting the company’s commitment towards the pan-India 5G roll-out.

Mukesh Ambani’s Take on the Results

Mukesh D. Ambani, the Chairman and Managing Director of Reliance Industries Limited, emphasized, “Strong operational and financial contribution from all business segments has helped Reliance deliver another quarter of robust growth.” Ambani also mentioned Jio’s dedication to digitizing India through its new offerings, JioAirFiber and JioBharat phone. He highlighted their goals to expand high-speed connectivity across India and ensure digital inclusion for millions. The company aims to achieve a complete pan-India rollout of 5G services by December 2023, setting a global benchmark for the fastest 5G network roll-out across a vast nation.