Reliance Industries Reports 2% Decline in Net Profit for March Quarter
Reliance Industries recently announced a 2% drop in its consolidated net profit for the quarter ending in March 2024, totaling Rs 18,951 crore. The companyโs net profit in the previous year for the same period was Rs 19,299 crore. Revenue from operations, on the other hand, saw an 11% increase year-on-year, reaching Rs 2.4 lakh crore compared to Rs 2.16 lakh crore in the previous yearโs quarter.
Strong Operating Profit and Margins Growth
Reliance Industriesโ operating profit, also known as EBITDA, experienced a robust 14% growth year-on-year, amounting to Rs 47,150 crore in the March quarter. Additionally, the company saw a 50 basis points expansion in margins, reaching 17.8% during the same period.
Dividend Approval and Financial Highlights
The board of Reliance Industries approved a second dividend of Rs 10 per share for the fiscal year 2024. This is in addition to the Rs 9 per share dividend paid out earlier in the last fiscal year. The companyโs finance costs decreased by 1% year-on-year, standing at Rs 5,761 crore due to lower average liability balances.
Segment Analysis: O2C Business
- The oil-to-chemicals business of Reliance Industries showed an 11% revenue growth year-on-year, totaling Rs 1.42 lakh crore.
- EBITDA for the business increased by 3% year-on-year to Rs 16,777 crore, supported by feedstock sourcing and product placement.
- Global refinery crude throughput decreased slightly, while domestic demand for different products showed varied growth rates.
Key Points:
- Global demand for fuels supported margins in the O2C segment.
- Domestic polymer and polyester demand remained stable year-on-year.
- KG-D6 block production accounted for 30% of Indiaโs domestic gas production.
Performance of Jio Platforms
Jio Platforms, the digital arm of Reliance Industries, witnessed a 13% growth in operating revenue year-on-year, reaching Rs 28,871 crore. The segmentโs EBITDA also showed a strong performance, growing by 12% to Rs 14,360 crore. Net profit for Jio Platforms rose by 12% year-on-year to Rs 5,583 crore.
Highlights:
- Jio added 10.9 million net subscribers during the quarter, maintaining network leadership.
- ARPU remained flat at Rs 181.7, driven by a better subscriber mix.
- The customer base increased to 470.9 million by the end of the March quarter.
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