Reliance Industries Q3 FY24 results : Indian conglommerate Reliance Industries Limited (RIL) has reported its consolidated results for the quarter ended December 31, 2023, showcasing significant growth across its diversified business portfolio. The group’s quarterly consolidated EBITDA reached ₹44,678 crore ($5.4 billion), marking a 16.7% increase year-over-year (YoY). This growth is attributed to the exceptional performance across all business segments, including Oil & Gas, Reliance Retail, and Jio Platforms.

Unprecedented Growth in Oil & Gas and Retail Sectors

The Oil & Gas business witnessed a remarkable 49.6% YoY increase in EBITDA, amounting to ₹5,804 crore ($697 million), driven by higher production and favorable market conditions. Reliance Retail’s EBITDA also saw a robust 31.1% YoY growth to ₹6,258 crore, buoyed by record footfalls during the festive season and a focus on cost management. Jio Platforms continued its upward trajectory with an 11.5% YoY EBITDA growth, reaching ₹13,955 crore, supported by substantial subscriber growth and improvements in Average Revenue Per User (ARPU).

Reliance Industries Consolidated Financial Highlights and Strategic Investments

Reliance Industries Limited’s gross revenue for the quarter was ₹248,160 crore ($29.8 billion), a 3.2% increase YoY, demonstrating sustained momentum in consumer businesses. Despite a planned maintenance shutdown affecting the O2C segment’s EBITDA growth, the company managed to maintain operational flexibility and capitalize on strong domestic demand. Reliance Industries Q3 FY24 results also saw significant capital expenditure of ₹30,102 crore ($3.6 billion), primarily directed towards the pan-India 5G rollout, expansion of retail infrastructure, and advancements in the new energy business.

Mukesh D. Ambani on RIL’s Operational Success and Future Outlook

Mukesh D. Ambani, Chairman and Managing Director of Reliance Industries Limited, praised the collective efforts of the teams across its businesses for delivering another quarter of robust performance. He highlighted the rapid rollout of True 5G services by Jio, making it the fastest in the world and providing high-speed digital connectivity across India. Ambani also pointed out the impressive financial performance of the retail segment and the highest ever quarterly EBITDA posted by the Oil & Gas segment. With KG D6 contributing significantly to India’s gas production, Reliance Industries Limited is poised to fuel the country’s transition towards a greener future. The upcoming commissioning of the New Energy Giga Complex in the second half of CY24 underscores RIL’s commitment to sustainability and its pivotal role in the global movement towards cleaner fuels.

Analysis of Reliance Industries Q3 FY24 results

Reliance Industries Q3 FY24 results demonstrate a formidable performance across its diverse business portfolio, underscoring the conglomerate’s operational excellence and strategic foresight. The significant year-on-year growth in consolidated EBITDA by 16.7% to ₹44,678 crore is a testament to RIL’s robust business model and its ability to navigate the complex dynamics of the global market effectively.

The remarkable 49.6% increase in EBITDA from the Oil & Gas segment reflects not only favorable market conditions but also RIL’s strategic investments in enhancing production capabilities. Similarly, the 31.1% growth in Reliance Retail’s EBITDA, supported by record footfalls and efficient cost management, highlights the segment’s strong consumer appeal and operational efficiency. Jio Platforms’ 11.5% EBITDA growth further illustrates RIL’s leadership in the digital services sector, driven by subscriber growth and improvements in ARPU.

The muted growth in the O2C segment’s EBITDA, attributed to planned maintenance, underscores the importance of operational resilience. Despite this temporary setback, RIL’s strategic focus on operational flexibility and domestic demand has ensured sustained performance.

RIL’s capital expenditure of ₹30,102 crore during the quarter, focusing on the pan-India 5G rollout, retail infrastructure expansion, and new energy business, signals the conglomerate’s commitment to investing in future growth areas. This investment strategy is poised to strengthen RIL’s market position and drive long-term shareholder value.

Mukesh Ambani’s vision for Reliance Industries, particularly in the digital and new energy sectors, sets a clear trajectory for the company’s future growth. The successful rollout of True 5G services across India by Jio and the strategic expansion of Reliance Retail’s physical and digital footprint are pivotal to RIL’s growth strategy. The Oil & Gas segment’s performance, particularly the KG D6 block’s contribution to India’s gas production, aligns with the national agenda for a greener and cleaner future.

In conclusion, Reliance Industries Q3 FY24 results reflect a balanced blend of immediate financial gains and strategic investments for future growth. The conglomerate’s focus on digital transformation, customer experience, and sustainability is likely to reinforce its leadership position in the Indian and global markets. As RIL continues to navigate the challenges and opportunities ahead, its diversified business model, strategic investments, and commitment to innovation will be key drivers of its success.

  India, Mukesh Ambani, Reliance Industries