Reliance Industries reports mixed 1Q FY24 results: revenues down, EBITDA up

Reliance Industries Limited (RIL) reported its financial results for the quarter ended June 30, 2023, revealing a mixed performance. Gross revenue dropped by 4.7% year-on-year (Y-o-Y) to ₹231,132 crore ($28.2 billion), primarily due to a 31% fall in crude oil prices leading to a sharp decline in Oil-to-Chemicals (O2C) revenues. This was partially mitigated by sustained growth in consumer businesses and increased volumes from O2C and Oil & Gas operations.

Reliance Industries Limited‘s EBITDA rose 5.1% Y-o-Y to ₹41,982 crore ($5.1 billion), spurred by consumer and upstream businesses which offset the decline in O2C earnings. The growth in Digital Services revenue and profitability was driven by a higher subscriber base and customer engagement. Reliance Retail earnings reflect an expanded footprint and improved profitability with operating leverage. Meanwhile, increased production and realizations contributed to Oil & Gas EBITDA growth.

Mukesh D. Ambani, Chairman and Managing Director of Reliance Industries Limited, stated, “Reliance’s strong operating and financial performance this quarter demonstrates the resilience of our diversified portfolio of businesses that cater to demand across industrial and consumer segments.”

Depreciation rose by 31.7% Y-o-Y to ₹11,775 crore ($1.4 billion) due to an expanded asset base across all businesses and higher network utilization in the Digital Services business. The quarter saw finance costs escalate by 46.0% Y-o-Y to ₹5,837 crore ($711 million), mainly due to higher interest rates and loan balances. Meanwhile, the profit for the period dwindled by 5.9% Y-o-Y at ₹18,258 crore ($2.2 billion), resulting from increased finance costs and depreciation. The Capital Expenditure for the quarter reached ₹39,645 crore ($4.8 billion).

Despite global macroeconomic challenges, Reliance Industries Limited’s O2C business maintained a resilient performance, and the digital services segment saw robust growth, backed by Jio’s range of quality offerings at affordable price points. Mukesh Ambani highlighted the accelerated rollout of Jio’s True 5G services as a driver of India‘s digital transformation, and the launch of the “JioBharat” Phone Platform to democratize internet access in India. The Retail business saw significant growth with expanded physical-digital footprint and steady growth in footfalls, contributing to the robust quarterly EBITDA of ₹41,982 crore ($5.1 billion).