RIL’s Q4 earnings: Analysts anticipated a 5-10% decline in profit but a double-digit increase in sales for the oil-to-telecom major.
RIL’s dividend and Q4 results: On Monday, Reliance Industries Ltd (RIL) led by Mukesh Ambani, disclosed a 1.80% year-on-year decline in consolidated net profit (attributable to owners of the company) at Rs 18,951 crore for the March quarter, as opposed to Rs 19,299 crore in the corresponding quarter of the previous year. Analysts had anticipated a 5-10% reduction in profit for the oil-to-telecom major.
RIL, the top-valued entity on Dalal Street, announced that its consolidated revenue from operations surged 11.3% year-on-year to Rs 2,40,715 crore for the quarter, up from Rs 2,16,265 crore in the same period last year. Analysts projected double-digit sales growth.
Shreyansh Shah, Research Analyst at StoxBox, expressed confidence in the company’s ability to navigate short-term challenges and maintain strong performance across all business segments. He anticipates further enhancements once the global macro environment stabilizes.
RIL’s EBITDA and net debt
Quarterly EBITDA increased by 14.3% year-on-year to Rs 47,150 crore, up from Rs 44,678 crore. The EBITDA margin stood at 17.8%, a 50 basis point rise from 17.3% in the corresponding quarter of the previous year.
Quarterly net debt decreased to Rs 1,16,281 crore in March from Rs 1,19,372 crore in December and Rs 1,25,766 crore in March of the previous year.
RIL dividend
The RIL board approved a dividend of Rs 10 per share for FY24. Prior to its quarterly earnings, RIL shares closed Monday’s session at Rs 2,960.60, marking a 0.65% increase. The stock has risen by 14.32% in 2024 thus far.
Regarding the dividend, RIL stated: “We will notify you accordingly about the Annual General Meeting date for the financial year ended March 31, 2024, and the commencement date for dividend payment, subject to shareholder approval.”
Ebitda by segment
RIL noted that its EBITDA was supported by robust performance from core businesses. JPL’s EBITDA surged 12.5% year-on-year due to increased revenue, propelled by continual growth in subscriber numbers, stated the Mukesh Ambani-led company.
RRVL’s EBITDA increased by 18.5%, driven by business efficiencies, with a margin expansion of 60bps to 8.6%. Despite a challenging margin environment, O2C EBITDA remained resilient, with lower transportation fuel cracks offsetting reduced SAED impact. The Oil and Gas segment’s EBITDA surged by 47.5%, primarily due to a 66.4% rise in gas and condensate production from the KG D6 block, according to RIL.
Mukesh Ambani’s statement
Chairman and Managing Director Mukesh Ambani highlighted that initiatives across RIL’s businesses significantly contributed to fostering growth in various sectors of the Indian economy. He noted that all RIL segments demonstrated strong financial and operational performance, leading to the achievement of multiple milestones. Ambani also mentioned that Reliance Industries has become the first Indian company to surpass the Rs 100,000-crore mark in pre-tax profits.
“The digital services segment’s performance has been enhanced by rapid expansion of the subscriber base, driven by both mobility and fixed wireless services. With more than 108 million True 5G customers, Jio is at the forefront of India’s 5G transformation. From migrating 2G users to smartphones to spearheading the development of AI-driven solutions, Jio has demonstrated its ability to bolster the nation’s digital infrastructure,” he remarked.
“Reliance Retail maintained its commitment to offering customers a wide range of choices through its omni-channel presence.
“We persist in delivering product diversity and enhanced in-store experiences through store remodeling and layout upgrades. Our digital commerce platforms also introduce innovative solutions to users with a comprehensive brand catalog.
Reliance Retail also strives to empower millions of merchants through its distinctive initiatives in the new commerce sector,” Ambani stated.
Strong global fuel demand and limited refining system flexibility globally supported O2C segment margins and profitability. Despite challenges in the downstream chemical industry, maintaining leading product positions and feedstock flexibility through cost management prioritization ensured resilient performance. The KG-D6 block achieved 30 MMSCMD of production, constituting 30% of India’s domestic gas production.
“We are dedicated to our projects and initiatives, including those in the New Energy segment, which will strengthen the company and drive sustainable future growth,” stated Ambani.
You might also be interested in – Reliance Consumer collaborates with Sri Lanka’s Elephant House to strengthen competition against Coke & Pepsi
