Reliance Q1 result: Profit declines, but EBITDA inches up- 6 key highlights from Q1FY25 scorecard

Reliance Q1 result: Oil-to-telecom-to-retail conglomerate Reliance Industries on Friday, July 19, reported a 4 per cent year-on-year (YoY) decline in June quarter (Q1FY25) consolidated net profit even as its revenue moved up 11.5 per cent YoY.

The company's consolidated EBITDA for the quarter under review moved up with strong contributions from consumer and upstream businesses, largely offsetting the weak performance of O2C (oil-to-chemicals) segments.

“Consolidated EBITDA for the quarter improved from a year ago with strong contribution from Consumer and Upstream businesses offsetting weak O2C operating environment," said Mukesh Ambani, Chairman and Managing Director, Reliance Industries.

"Reliance’s resilient operating and financial performance in this quarter underscores the strength of its diverse portfolio of businesses. Importantly, these businesses are contributing significantly to India’s growth, providing vital energy and vibrant channels for digital and physical distribution of goods and services," he said.

Six key highlights from Reliance's Q1 scorecard:

Profit shrinks, EBITDA inches up

The Q1 consolidated profit after tax (PAT) of the company decreased 4 per cent YoY to ₹17,448 crore against ₹18,182 crore in the same quarter last year.

The company's consolidated revenue rose 11.5 per cent YoY to ₹2,57,823 crore from ₹2,31,132 crore in the corresponding quarter last year.

EBITDA for the quarter under review inched up 2 per cent YoY to ₹42,748 crore, supported by oil and gas and consumer business, which offset weak O2C.

Jio rings louder, but ARPU remains flat

The company's telecom arm, Jio Platforms, witnessed strong growth during the quarter under review, as the segment's EBITDA jumped 11.6 per cent YoY to ₹14,638 crore, led by healthy revenue growth and operating leverage.

Jio's revenue during the quarter jumped 12.8 per cent YoY to ₹34,548 crore, driven by robust subscriber growth across mobility and homes. PAT for the segment rose 11.7 per cent YoY to ₹5,698 crore.

ARPU (average revenue per user), a key monitorable for telecom operators, remained almost flat (up 0.7 per cent YoY), at ₹181.7 with a better subscriber mix, partially offset by an increasing mix of promotional 5G traffic being offered on an unlimited basis to subscribers and not charged separately.

"Our new prepaid plans would foster industry innovation towards 5G and AI and drive sustainable growth. Jio with its superior network and new service propositions would further build its market leadership with a customer first approach,” said Akash Ambani, Chairman of Reliance Jio Infocomm.

Retail on a strong footing

Reliance Retail Ventures saw a 6.6 per cent YoY rise in revenue from operations to ₹66,260 crore.

The segment's EBITDA for the quarter came at ₹5,664 crore, up 10.5 per cent YoY, driven by an increase in footfalls and expansion of store footprint, streamlining of operations driving margin improvement.

PAT rose 4.6 per cent YoY to ₹2,549 crore.

Reliance Retail expanded its store network with 331 new store openings during the quarter, taking the total store count to 18,918 stores with an area under operation at 81.3 million sq. ft.

The quarter recorded footfalls of over 296 million, a growth of 18.9 per cent YoY.

“The business continued investments in stores, platform enhancements, product design and sourcing capabilities to further strengthen the value proposition to the customers. These initiatives will help sustain growth momentum in the near and medium term,” said the company.

"During the quarter, the business entered into a long-term licensing arrangement with ASOS, UK’s leading online fashion retailer, to exclusively retail ASOS’s curated portfolio of fashion-led own-brand labels across all online and offline channels in India," the company said in its exchange filing.

The subdued show continues for oil-to-chemicals (O2C)

While the segment's revenue increased by 18.1 per cent YoY to ₹157,133 crore, thanks to higher product prices tracking a nearly 9 per cent increase in Brent crude oil prices and higher volumes supported by strong domestic demand, its EBITDA fell 14.3 per cent and margin declined by 320 bps YoY due to lower transportation fuel cracks.

Mixed show from oil & gas

The segment's revenue jumped 33.4 per cent YoY to ₹6,179 crore and EBITDA also surged 29.8 per cent YoY. However, the EBITDA margin declined by 240 bps YoY.

Revenue was driven by higher volumes, which was partly offset by lower price realisation from KG D6 and CBM Field.

The average KGD6 production for the Q1 was 28.7 MMSCMD of gas and 21,640 barrel per day of oil/condensate, said the company.

The current rate of CBM production is 0.79 MMSCMD with significant contribution from new wells under production, the company said.

Weak show of media business

Revenue from operations for the segment declined 3 per cent YoY to ₹3,141 crore due to IPL revenue being distributed across two quarters this year, said the company.

EBITDA for the segment plunged 97.2 per cent YoY and EBITDA margin dropped 320 bps YoY. The segment suffered a loss of ₹221 crore during the quarter.

Disclaimer: This article and the numbers given in it are based on the exchange filing of Reliance Industries. The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.