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PremiumReliance Q2 Results Highlights: Billionaire Mukesh Ambani-led Reliance Industries Ltd (RIL) announced its financial results for the July-September quarter of fiscal 2024-25 (Q2FY25) today, October 14. The oil-to-telecom conglomerate reported muted growth in the second quarter of FY25 due to a weaker oil-to-chemicals (O2C) business.
India's most valuable company reported a consolidated profit of ₹16,563 crore, which was 4.7 per cent lower than the same period last year. Consolidated revenue from operations during the quarter was flat at ₹2,35,481 crore.
Reliance reported consolidated earnings before interest, tax, depreciation and amortization (EBITDA) of ₹43,934 crore for the quarter, two per cent higher year-on-year. EBITDA margin 17 per cent compared to 17.5 per cent last year.
Reliance’s board approved a bonus share issue in the ratio 1:1 during its latest annual general meeting (AGM) in August 2024. Reliance's share price settled higher higher ahead of Q2 results announcements.
Stay tuned to our Reliance Q2 results Live blog for the latest updates
2Q FY25 revenue is lower by 6.0 per cent as compared to 2Q FY24 mainly on account of lower price realisation partly offset by increase in gas and condensate volumes in KGD6 and CBM field.
• The average price realized for KG D6 gas was $ 9.55/MMBTU in 2Q FY25 vis-à-vis $ 10.46/MMBTU in 2Q FY24. The average price realised for CBM gas was $ 11.4/MMBTU in 2Q FY25 vis-à-vis $13.72/MMBTU in 2Q FY24.
• EBITDA increased to ₹5,290 crore, up by 11.0 per cent on a Y-o-Y basis. EBITDA margin was at 85.0 per cent for 2Q FY25
--The average KGD6 Production for the 2Q FY25 is 28.5 MMSCMD of gas and 20,832 bbl / day of oil
• The current production rate is ~28.1 MMSCMD of gas and ~ 21,000 bbl / day of oil
• Reliance BP Mobility Limited (RBML) (operating under brand Jio-bp), operates a country-wide network of 1,821 outlets (vs 1,663 in 2Q FY24).
• Industry pioneering propositions including higher mileage delivering diesel at no extra price, industry’s only loyalty program exclusively for truck drivers and “Petrol Bharo, Sona Jeeto" scheme, aided market outperformance.
• RBML ATF volumes grew by 83.4 per cent vs industry growth of 9.4 per cent on Y-o-Y basis. Alongside reinforcing network presence to leverage growth in conventional fuels, RBML has also strengthened the foundation in low carbon fuels. It has emerged as the leading retailer of both high methane compressed Bio-gas and public EV charging infrastructure.
• Under Jio-bp Pulse, RBML has grown network to 5,164 live charging points at 520 unique sites with industry leading charger uptime. This includes 27 of India’s largest charging hubs with >100 charging points
Cracks of gasoline, gasoil and jet/kero declined from elevated levels a year ago, due to softer demand growth along with additional supply from new refineries commissioned in Middle East, Asia Pacific & Nigeria.
• Singapore Gasoline 92 RON cracks declined Y-o-Y to $6.8 / bbl in 2Q FY25 vs $13.1 / bbl in 2Q FY24. Cracks declined Y-o-Y due to global softness in Gasoline demand, higher inventories and rising EV penetration in China. Significantly higher refinery runs in the US also led to increased global supplies, impacting margins.
• Singapore Gasoil 10-ppm cracks declined Y-o-Y to $13.6 / bbl in 2Q FY25 vs $28.8 / bbl in 2Q FY24. Cracks declined Y-o-Y due to weak economic and industrial activity in China. Diesel cracks were also impacted by slow recovery in demand in the US and Europe, due to slowing economy amid delayed interest rate cuts.
• Singapore Jet/Kero cracks declined Y-o-Y to $13.1 / bbl in 2Q FY25 vs $26.1 / bbl in 2Q FY24. Cracks moved lower in line with gasoil cracks.
In 2Q FY25, global oil demand rose by only 0.8 mb/d Y-o-Y (vs 2.5 mb/d in 2Q FY24) to 103.9 mb/d. Gasoline posted a Y-o-Y demand growth of 0.35mb/d while Jet/Kero demand grew by 0.30 mb/d Y-oY. Diesel demand remained flat.
• Dated Brent averaged $ 80.2/bbl in 2Q FY25, down $ 6.6/bbl Y-o-Y. Crude oil benchmarks fell Y-o-Y due to lower-than-expected demand growth, especially in China. Increasing supplies from non-OPEC players pushed prices lower even though OPEC+ countries extended voluntary production cuts.
• Global refinery crude throughput was lower by 0.5 mb/d Y-o-Y at 82.3 mb/d in 2Q FY25.
• Domestic demand for HSD, MS & ATF increased by 0.1 per cent, 7.3 per cent and 9.4 per cent, respectively, over the same quarter last year.
•Segment Revenue for 2Q FY25 increased by 5.1 per cent Y-o-Y to ₹155,580 crore ($ 18.6 billion) primarily because of higher volumes and increased domestic placement of products.
• Segment EBITDA for 2Q FY25 is lower by 23.7 per cent Y-o-Y to ₹12,413 crore ($ 1.5 billion). Unfavourable demand-supply balance led to sharp ~50 per cent decline in transportation fuel cracks and continued weakness in downstream chemical deltas.
• Depreciation for 2Q FY24 was higher due to accelerated depreciation for catalyst and equipment replaced during the planned shutdown.
•FCC debottlenecking for incremental throughput and high-severity operations was completed successfully to maximize margins.
• Optimized primary and secondary unit yields while maximizing throughputs.
• Enhanced arbitrage barrel sourcing to minimize feedstock cost.
• Petrochemical production was maximized, while lower Ethane prices partially supported margins.
• Fuel cost minimized by maximizing gasifier operation at higher throughput, eliminating LNG imports.
Isha M. Ambani, Executive Director, Reliance Retail Ventures Limited, said “Reliance Retail continues to make investments in technology and infrastructure to build a strong foundation for future growth and maintain market leadership.
We continue to strengthen our customer proposition with innovative products that spans everyday essentials to premium offerings. By continuously enhancing our assortment and innovating across categories, we are creating a shopping experience that meets the evolving needs of our customers and reinforces our leadership in the retail space".
JioMart is scaling up quick commerce pilot by serving customers through own store network.
• The non-grocery categories continue to do well with AOV growing 2X Y-o-Y led by uptick in consumer electronics.
• The option count continued to grow with its seller base growing by 46 per cent Y-o-Y and option count up by 13 per cent Y-o-Y giving customers access to a wider product catalogue to choose from.
• Grocery delivered another quarter of steady growth led by Smart Bazaar and Smart stores.
• The business successfully executed Full Paisa Vasool Sale during the period as customers continued to enjoy the wide choice of offers across categories. The business also registered highest ever single day sales on Independence Day.
• The growth was broad based across categories led by growth in Confectioneries & Snacks (30 per cent Y-o-Y), fruits (26 per cent Y-o-Y), apparel (49 per cent Y-o-Y).
• Grocery New Commerce business continues its growth trajectory as Metro format strengthened its engagement with Trader and HoReCa segments. The business executed multiple campaigns like Freedom Sales, Mehangai Se Azadi, Metro Aayein Tyohaar Manayein to drive growth.
Digital stores maintained growth momentum led by a strong growth in average bill value. The network of Digital stores crossed 650 stores.
• Own brand / PBG introduced several new products across categories even as it continued to grow its merchant base which was up 2X Y-o-Y.
• JioMart Digital business growth was driven across categories. The business expanded its merchant partners and consistently increasing the wallet share.
-Premium Brands business launched its first Armani Café to further strengthen its F&B portfolio. Hamleys format continues to do well and is undertaking a focused international expansion.
• Ajio Luxe delivered strong growth with options count increasing by 28 per cent Y-o-Y and brand portfolio crossing 725 brands.
• Jewelry business delivered growth led by improvement in ABV and launch of nine new collections during the period.
The business opened 464 new stores. Total store count at 18,946 with area under operation at 79.4 million sq. ft.
• The quarter recorded footfalls of over 297 million, a growth of 14 per cent Y-o-Y.
• The focus on scaling up Digital Commerce and New Commerce continued with these channels contributing to 17 per cent of total revenue.
• The registered customer base grew to 327 million, making Reliance Retail one of the mostpreferred retailers in the country.
Reported EBITDA at ₹5,850 crore which was up 0.3 per cent Y-o-Y.
• EBITDA from operations was at ₹5,675 crore, up 1.0 per cent Y-o-Y. EBITDA margin from operations at 8.5 per cent, up 40 bps Y-o-Y.
• Depreciation for 2Q FY25 at ₹1,420 crore, up 1.5 per cent Y-o-Y. Depreciation for 1Q FY25 was higher due to accelerated depreciation for stores under closure
--Quarterly revenue at ₹76,302 crore, marginally down
--Quarterly EBITDA at ₹5,850 crore, marginally up
--Total footfall of 297 million across formats; 464 new stores opened
--Business registered a revenue of ₹76,302 crore, down 1.1 per cent Y-o-Y. Growth impacted by weak Fashion and Lifestyle (F&L) demand, continued focus on streamlining of operations and calibrated approach to B2B business to improve margins.
Akash M Ambani, Chairman of Reliance Jio Infocomm, said, “Right from inception, Jio has focused on deep tech innovation to create customer and shareholder value. The ongoing transformation created by Jio True5G and JioAirFiber in India’s digital landscape is a testament to this approach.
AI is creating the next runway for this transformation, and Jio is committed to developing the world’s best AI ecosystem in India, for all Indians. Jio is committed to delivering robust shareholder returns and has demonstrated strong uplift in financial performance in the current quarter."
During the quarter, JioTV+ app was made available for free download on all leading Smart TVs without Set Top Box or additional JioAirFiber/JioFiber connection. This JioTV+ 2-in-1 offer allows users to connect multiple TVs with one connection and access 800+ Digital TV channels and 13+ OTT apps.
Jio has reached 148 million subscribers on True5G in less than two years of launch and continues to be the largest 5G operator outside China. Jio has transformed India from 5G-dark to 5G-bright through unmatched spectrum holdings, 5G Standalone Architecture, and advanced technologies like Carrier Aggregation and Network Slicing.
• JioAirFiber’s rapid uptake has significantly accelerated the pace of home connections, with ~2.8 million connected homes by JioAirFiber as of September 24. Jio’s pace of home connections is the fastest of its kind globally. Scaling up distribution, continuous optimization of the onboarding process, and technology edge would enable Jio to achieve the target of connecting 100 million homes in India at record speed.
Quarterly Performance (2Q FY25 vs 2Q FY24)
• Operating revenue (net of GST) growth primarily driven by a partial impact of tariff hikes and scale-up of home and digital services businesses.
• Strong EBITDA growth led by healthy revenue growth.
• Healthy PAT growth due to increased revenue and operating leverage
ARPU increased to ₹195.1 with the partial follow-through of the tariff hike and a better subscriber mix. The full impact of the tariff hike will flow through in the next 2-3 quarters.
• Engagement levels remained strong with total data and voice traffic increasing by 24 per cent and 6.4 per cent Y-o-Y, respectively.
• Limited amount of SIM consolidation observed after the tariff hike, offsetting continued strength in gross addition in 2Q FY25; monthly churn increased to 2.8 per cent.
--Quarterly revenue at ₹37,119 crore, up 17.7 per cent y-o-y
--Quarterly EBITDA at ₹15,931 crore, up 17.8 per cent y-o-y
--Total subscriber base was ~479 million as of Sep’24, up 4.2 per cent y-o-y
--Strong 7.4 per cent y-o-y increase in ARPU to ₹195.1, full impact of tariff hike to flow through in the next 2-3 quarters
--Jio further strengthens its leadership in 5G with 148 million subscribers now transitioned to 5G and contributing ~34 per cent of wireless data traffic
Depreciation increased by 2.3% Y-o-Y to ₹12,880 crore ($ 1.5 billion).
• Finance Costs increased by 5.0% Y-o-Y to ₹6,017 crore ($ 718 million), primarily due to higher debt.
• Tax Expenses decreased Y-o-Y to ₹5,936 crore ($ 708 million).
• Profit After Tax and Share of Profit/(Loss) of Associates & JVs decreased Y-o-Y to ₹ 19,323 crore ($ 2.3 billion).
• Capital Expenditure for the quarter ended September 30, 2024, was ₹34,022 crore ($ 4.1 billion).
The merger of TV18 Broadcast Ltd. (TV18), and e-Eighteen.com Ltd. (E18) with Network18 Media & Investments Ltd. (Network18) through a Scheme of Arrangement was sanctioned by the Hon’ble National Company Law Tribunal, Mumbai Bench and was made effective on 3 rd October 2024. Record Date for the purpose of determining the equity shareholders of TV18 and E18 entitled to receive the equity shares of Network18, as per the Scheme, has been set as October 16, 2024.
EBITDA decreased by 2two per cent Y-o-Y to ₹43,934 crore ($ 5.2 billion).
-- EBITDA for Jio Platforms Limited (JPL) increased 17.8 per cent Y-o-Y due to better subscriber mix, digital services scale-up and revision in telecom tariffs.
--EBITDA margin for Reliance Retail Ventures Limited (RRVL) improved by 30 bps with continued focus on streamlining of operations and calibrated approach in B2B.
--O2C EBITDA was lower by 23.7 per cent on account of sharp decline in product margins. Fuel cracks declined by nearly 50 per cent Y-o-Y. Downstream chemical also declined with muted global demand in a well-supplied market. RIL benefited due to superior ethane cracking economics driven by sharp fall in ethane prices.
--Oil and Gas segment EBITDA increased by 11 per cent on account of sustained volume growth and one time provisioning towards decommissioning cost for Tapti field in Q2 FY 24.
-Gross Revenue remained stable Y-o-Y at ₹ 258,027 crore ($ 30.8 billion). Oil to Chemicals (O2C) revenue improved with higher volumes and increased domestic placement of products.
-Digital services revenue increased with the impact of revised telecom tariffs for mobility services and scale-up of homes and digital services businesses.
-Lower gas price realizations led to 6% lower revenue in the Oil and Gas segment
"The retail segment continues to increase its consumer touchpoints and product offerings across physical and digital channels. The unique omni-channel retail model enables the business to service a wide range of requirements of a vast, heterogenous customer base. The retail business continues to partner with renowned domestic as well as global players, expanding its basket of quality product offerings.
The focus on strengthening our Retail operations will help us rapidly scale-up this business in the coming quarters and years and sustain our industry-leading growth momentum. The first of our New Energy Giga-factories is on-track to commence production of solar PV modules by the end of this year.
With a comprehensive range of renewable solutions including solar, energy storage systems, green hydrogen, bio-energy and wind, the New Energy business is poised to become a significant contributor to global clean energy transition," added Ambani.
Commenting on the results, Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries Limited said: “I am happy to note that during this quarter Reliance once again demonstrated the resilience of its diversified business portfolio. Our performance reflects robust growth in Digital Services and Upstream business. This helped partially offset weak contribution from O2C business which was impacted by unfavorable global demand-supply dynamics.
Growth in Digital Services was led by increased ARPU and improving customer engagement metrics reflecting the strong value proposition of our services. The home broadband segment is witnessing accelerated momentum on the back of our unique industry-leading JioAirFiber offering.
Jio’s broad spectrumof offerings enables it to digitally empower every village, town and city in India as well as the country’s small and medium scale enterprises. The digital services business continues to focus on innovative deep-tech solutions on a national scale and is on track to deliver the path-breaking benefits of Artificial Intelligence to all Indians."
The country’s most valuable company reported a consolidated profit of ₹16,563 crore, which was 4.7 per cent lower compared to the same period last year. Consolidated revenue from operations during the quarter came in flat to ₹2,35,481 crore.
Reliance reported consolidated earnings before interest, tax, depreciation and amortization (EBITDA) of ₹15,931 crore for the quarter, 17.8 per cent higher year-on-year. EBITDA margin 50.2 per cent compared to 50.3 per cent last year.
Billionaire Mukesh Ambani-led Reliance Industries Ltd on Monday reported a fall in profit for the July-September quarter due to weaker performance in its key oil-to-chemicals business and its retail venture. However, better performance across other key business segments, particularly Jio, helped partially offset the fall in margins at the Mukesh Ambani-led company.
According to JM Financials, RIL's retail EBITDA is likely to grow only by 0.6 per cent QoQ only to ₹5,700 crore due to ongoing store rationalisation and impact of heavy monsoon. According to D-Street experts, the RIL retail business should be largely flat given the macro trend in the industry.
Reliance Retail director Isha Ambani said the retail arm aims to double its business in the next three to four years. For the financial year ended March 31, 2024, Reliance Retail recorded a gross revenue of ₹3.06 lakh crore ($36.8 billion), growing 17.8 per cent over the previous year.
"With the strong foundation we have built, I am confident that we will achieve our goal of doubling our retail business in the next 3-4 years," said Isha Ambani. Regarding market capitalisation, Reliance Retail is among the top-10 retailers globally and among the top-30 in terms of revenues.
Antique Stock Broking expects RIL to report a marginal 2.8 per cent QoQ EBITDA growth, primarily driven by the telecom business. “We forecast telecom EBITDA to increase 10.5 per cent QoQ driven by a six per cent ARPU growth, while its subscriber base remains flat due to SIM consolidation," said the brokerage.
Reliance Jio is likely to show steady performance despite the company's price hike (0.6 per cent QoQ subscriber growth and seven per cent QoQ ARPU growth), and the retail segment’s profitability should be resilient.
The digital services segment is likely to increase 10 per cent QoQ, driven by the tariff increase. According to Nuvama Institutional Equities, Jio's EBITDA is likely to surge 13 per cent YoY and five per cent QoQ on high ARPU, offsetting two per cent QoQ moderation in the number of subscribers.
Addressing the 47th AGM, Mukesh Ambani said that the conglomerate is not seeking short-term profit but is in the business of creating wealth for the nation. Speaking to shareholders, he said Reliance Industries Ltd's businesses continue to be key drivers of the Indian economy and have become success stories.
"We are not in the business of pursuing short-term profit and hoarding wealth. We are in the business of creating wealth for India," he said. “We are in the business of providing the highest quality products and services that improve efficiency, productivity, and ease of living for Indian consumers."
RIL is expected to report a muted growth in the second quarter of the current fiscal due to a weaker oil-to-chemicals (O2C) business. D-Street analysts expect the O2C biz EBITDA to fall up to 27 per cent year-on-year (YoY) and 10 per cent quarter-on-quarter (QoQ) on weak refining and petrochem segments. For the O2C segment, Jefferies expects a one per cent decline in EBITDA, compared to the previous quarter.
According to Antique Stock Broking, the O2C business is likely to be hit by weak macro trends; while Singapore GRM is flat QoQ, diesel spreads are down, and petrochem would be impacted by a sharp drop in PX and Benzene margins QoQ. “However, we expect higher Russian discount, restart of Venezuelan crude imports, and resumption of European diesel exports to cushion GRMs limiting QoQ EBITDA drop to just 3.1 per cent," said the brokerage.
RIL share price ahead of Q2 results: Shares of Reliance Industries settled 0.11 per cent higher at ₹2,745.20 apiece on the BSE.
According to a majority of D-Street brokerages, RIL is expected to report a 1-13 per cent dip in reported profits in Q2FY25 from a year ago. Kotak Institutional expects a modest 2.2 per cent rise. Domestic brokerage ICICI Securities expects Reliance's upstream to show softness, with a slight production decline and higher profit petroleum share of government to dent margins.
According to stock market experts, Reliance Industries Q2 results in 2024 are expected to remain 'muted'. However, they said a dip in Reliance share price should be seen as a buying opportunity as RIL share price has already faced a considerable correction in recent sessions.
Reliance Jio is expected to add 1mn subscribers QoQ to 491 mn subscribers, with growth in ARPU by 7.5% QoQ to ₹195/month, led by recent tariff hike; and that would result in 8.5% QoQ revenue growth.
Reliance Q2 Results LIVE: Reliance share price traded marginally higher on Monday ahead of the announcement of the Q2 results today. RIL shares opened at a high of ₹2,761.70 apiece as against Friday’s close of ₹2,742.20 apiece on the BSE. Reliance shares were trading 0.21% higher at ₹2,748.00 on the BSE.
Reliance Q2 Results LIVE: Reliance Industries is expected to post a second consecutive quarter of muted results. The September quarter earnings of RIL is likely to be weighed down by weak performance from Reliance Retail and its oil-to-chemicals (O2C) business, analysts said.
Reliance Q2 Results LIVE: Billionaire Mukesh Ambani-led Reliance Industries Ltd (RIL) is set to announce its financial results for the July-September quarter of fiscal 2024-25 (Q2FY25) today, October 14.
“The Board of Directors of the Company is scheduled to be held on Monday, October 14, 2024, inter alia, to consider and approve the standalone and consolidated unaudited financial results of the Company for the quarter and half year ended September 30, 2024," said RIL in its stock exchange filing.
