In the most recent quarter of the fiscal year 2023-24, Reliance Industries Ltd (RIL) reported a notable surge of 9 percent in its net profit, reaching a commendable Rs 17,265 crore, or Rs 25.52 per share. This positive momentum, however, was not evenly distributed across all business sectors, as the oil domain faced a momentary setback due to planned maintenance-induced weaknesses in earnings. Fortunately, the stability observed in the retail and telecom verticals managed to offset this challenge.
According to the stock exchange filing, this net profit represents a substantial 9.3 percent increase compared to the figures from the corresponding period a year ago, where the company earned Rs 15,792 crore, or Rs 23.19 per share. The intricacies of the financial landscape were further reflected in RIL’s revenue from operations, which remained relatively stagnant at Rs 2.2 lakh crore.
Delving deeper, the oil-to-chemicals unit experienced a 2.4 percent decline in revenue, primarily attributed to lower price realisation. The confluence of planned maintenance and inspection shutdowns at the Jamnagar refinery complex had a tangible impact on yields and profitability, as elucidated in the official statement by Reliance.
Closing at Rs 2,735.05 apiece on the BSE, Reliance’s shares demonstrated a marginal increase of 0.01 percent on Friday, indicating a nuanced response from the market.
Shifting the spotlight to Reliance Retail Venture Ltd (RRVL), the quarterly financial report for December 2023 revealed a commendable 31.87 percent rise in net profit, totaling Rs 3,165 crore. This impressive performance was underpinned by a robust 23.75 percent surge in revenue from operations, amounting to Rs 74,373 crore. Notably, the grocery, fashion & lifestyle, and consumer electronics segments played pivotal roles in driving this substantial revenue growth.
Comparing this with the corresponding period of the previous fiscal year, Reliance Retail witnessed a significant upswing in both net profit, rising from Rs 2,400 crore to Rs 3,165 crore, and revenue from operations, increasing from Rs 67,623 crore to Rs 74,373 crore. The gross revenue of Reliance Retail marked a notable ascent of 22.83 percent, reaching Rs 83,063 crore in the December quarter.
An earning statement from Reliance Retail highlighted an “EBITDA margin from operations on net sales” at 8.1 percent, showcasing a year-on-year increase of 40 basis points. This improvement was attributed to operating leverage and a sustained commitment to cost management.
Simultaneously, in the telecom arena, Reliance Jio reported a substantial 12.2 percent growth in net profit for the third quarter, reaching Rs 5,208 crore. This marked a noteworthy improvement from the corresponding period in the previous year, where the net profit stood at Rs 4,638 crore. The revenue from operations for Reliance Jio also saw a commendable uptick of 10.3 percent, reaching Rs 25,368 crore, effectively snapping a streak of five consecutive quarters of slowing growth.
