DNN 
Reliance Industries Ltd. (RIL) posted its Q2 FY2024 results, reporting a 5% decline in net profit, which stood at ₹16,563 crore compared to ₹17,394 crore in the same quarter last year. Despite this drop, the results exceeded market expectations. The revenue from operations grew slightly, reaching ₹2.35 lakh crore, a 0.2% year-on-year increase. EBITDA for the quarter was ₹43,934 crore, with an EBITDA margin of 17%, reflecting a slight decline from last year.
The company’s performance was driven by strong growth in its digital services and upstream business, which helped offset weaker contributions from its oil-to-chemicals (O2C) segment, impacted by global demand and supply issues.
Reliance Retail also continued to expand, opening 464 new stores, while Reliance Jio’s 5G subscriber base grew to 148 million, showcasing strong growth across its diverse business segments.
In addition to the financial details, Reliance Industries’ Q2 FY2024 results highlight several key developments across its business segments:
1. Digital Services and Jio:
Jio saw strong subscriber growth, with 148 million 5G users. Jio’s ARPU (Average Revenue Per User) increased to ₹195.1, reflecting revenue growth driven by tariff hikes. The ongoing expansion of JioAirFiber reached 2.8 million homes as of September 2024, positioning Jio for significant future growth in home broadband.
2. Retail:
Reliance Retail continued to grow with 464 new store openings, increasing its total footprint to 18,946 stores. Despite some challenges, including a weaker fashion and lifestyle segment, the company achieved a 14% increase in footfalls across stores and grew its customer base to 327 million. EBITDA for Reliance Retail stood at ₹5,850 crore, showing a slight year-on-year improvement.
3. Oil-to-Chemicals (O2C):
The O2C business faced challenges due to unfavorable global demand-supply dynamics, resulting in weaker performance. However, this was partially offset by 11% growth in the oil and gas segment’s EBITDA.
4. Financial Metrics:
RIL’s finance costs increased by 5% year-on-year to ₹6,017 crore, attributed to higher debt levels. Despite the dip in profitability, the company’s diversified portfolio helped cushion some of the impact.
These results reflect the company’s resilience and its strategy of investing in growth areas like digital services and retail while navigating challenges in its traditional energy business.
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