Reliance Industries Q2 Earnings Overview
Consolidated Revenue: Reliance Industries reported a consolidated revenue of ₹2.32 lakh crore, which is the same as the previous year.
Consolidated Net Profit: The net profit decreased to ₹16,563 crore from ₹17,394 crore year-on-year (YoY).
Consolidated EBITDA: Earnings before interest, tax, depreciation, and amortization (EBITDA) dropped to ₹39,058 crore, down 4.7% from ₹40,968 crore YoY.
Consolidated EBITDA Margin: The EBITDA margin fell to 16.9% from 17.7% YoY.
Oil to Chemicals (O2C) Business Performance
O2C Revenue: The oil-to-chemicals revenue grew by 5.1% YoY to ₹1.56 lakh crore, driven by higher product volumes and increased domestic sales.
O2C EBITDA: The EBITDA for this segment decreased by 23.7% YoY to ₹12,413 crore due to unfavorable market conditions, which led to a 50% drop in transportation fuel prices and ongoing weakness in the chemical sector.
Depreciation: Higher depreciation costs were reported due to the accelerated depreciation of catalysts and equipment during planned shutdowns.
Oil and Gas Exploration & Production Segment
Revenue: This segment’s revenue fell by 6.0% compared to the same quarter last year, mainly due to lower price realizations, although this was partly offset by increased production volumes in KGD6 and CBM fields.
Price Realizations: The average price for KG D6 gas was $9.55/MMBTU in Q2 FY25, down from $10.46/MMBTU in Q2 FY24. For CBM gas, it was $11.4/MMBTU, down from $13.72/MMBTU YoY.
EBITDA: EBITDA rose to ₹5,290 crore, an increase of 11.0% YoY, with an EBITDA margin of 85.0% for Q2 FY25.
Production Rates: Average production for KGD6 was 28.5 MMSCMD of gas and 20,832 barrels per day of oil/condensate. Current production rates are about 28.1 MMSCMD of gas and around 21,000 barrels per day of oil/condensate.
Reliance Retail Q2 Results
Revenue: Revenue fell by 1% to ₹76,325 crore from ₹77,163 crore in the same quarter last year.
EBITDA: EBITDA slightly increased by 0.5% to ₹5,861 crore compared to ₹5,831 crore YoY.
Profit Margin: The profit margin improved slightly to 7.7%, up from 7.6% YoY.
Key Highlights from Reliance Retail
New Stores: The business opened 464 new stores, bringing the total to 18,946, covering an area of 79.4 million square feet.
Customer Footfalls: The number of footfalls reached over 297 million, a growth of 14% YoY.
Digital and New Commerce: These channels contributed to 17% of total revenue, indicating a strong focus on digital growth.
Customer Base: The registered customer base grew to 327 million, making Reliance Retail one of India’s most preferred retailers.
Partnerships: During the quarter, exclusive partnerships were formed with Delta Galil to expand offerings in lingerie and activewear, and ASOS was launched in India.
Reliance Jio Q2 Results
Revenue: Jio’s revenue grew by 14.5% to ₹28,338 crore, up from ₹24,750 crore last year.
Net Profit: Net profit increased by 23.2% to ₹6,231 crore from ₹5,058 crore YoY.
EBITDA: EBITDA rose by 16.1% to ₹15,036 crore, up from ₹12,953 crore YoY.
EBITDA Margin: The EBITDA margin improved slightly to 53.1%, up from 52.3% YoY.
Average Revenue Per User (ARPU): ARPU increased by 7.4% to ₹195.10, compared to ₹181.70 last year.
Jio Platforms Performance
Traffic Growth: Data and voice traffic grew significantly, with total data traffic increasing by 24% and voice traffic by 6.4% YoY.
SIM Consolidation: There was limited SIM consolidation after the recent tariff hike, but gross additions remained strong in Q2 FY25. Monthly churn rose to 2.8%.
Subscriber Base: Jio has reached 148 million subscribers on True5G in under two years, making it the largest 5G operator outside China.
Home Connections: JioAirFiber connected approximately 2.8 million homes as of September 24, with plans to reach 100 million homes rapidly.
Why Reliance Industries Did Not Announce Ex-Date for Its 1:1 Bonus
The company has received requests from investors holding partly paid shares, asking for an extension to pay the remaining amounts necessary to convert these shares into fully paid shares. As of March 2024, RIL had 417,000 partly paid shares held by non-institutional investors. On September 23, the company announced it would extend the deadline for paying the outstanding amounts to October 7, 2024. Investors who complete this payment will qualify for RIL bonus shares at a 1:1 ratio and will avoid forfeiting any amounts already paid, while also gaining the full value of their shares.
Although the payment deadline has passed, the company must still process the payments from those who have completed them. It will then cancel the partly paid shares and issue fully paid shares to the eligible investors, which will be listed on the stock exchanges. This entire process may take 3-4 weeks before the new shares are listed and the company announces the record date for the bonus shares.
Update (October 16, 2024)
Reliance Industries has set Monday, October 28, 2024, as the record date to decide which of its equity shareholders are eligible to receive bonus shares.
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