Oil to telecom conglomerate Reliance Industries (RIL) reported a 5.5 per cent year-on-year (Y-o-Y) decline in its consolidated net profit (attributable to the owners of the company) for the quarter ended June 2024 (Q1 FY25).
For the quarter under review, RIL reported a net profit of Rs 15,138 crore and revenue of Rs 2.31 trillion, up 11.7 per cent from a year ago. Growth in revenue, the company said, was led by O2C’s higher oil and product prices and the strong volume growth in the oil and gas segment.
The company’s other income grew 4.5 per cent to Rs 3,983 crore from a year ago.
In a Bloomberg poll, 13 analysts estimated a revenue of Rs 2.32 trillion and seven analysts estimated a net income adjusted of Rs 17,416 crore. RIL missed street estimates for its net profit numbers.
The company reported a 2 per cent Y-o-Y growth in its consolidated Ebitda for the quarter to ~Rs 42,748 crore, where the company said strong contributions from the oil and gas and consumer business offset weak O2C. Ebitda is earnings before interest, taxation, depreciation and amortisation.
“Consolidated Ebitda for the quarter improved from a year ago with strong contributions from consumer and upstream businesses offsetting the weak O2C operating environment. Reliance’s resilient operating and financial performance in this quarter underscores the strength of its diverse portfolio of businesses,” said Mukesh Ambani, chairman and managing director of the company.
Earnings from the company’s O2C business were impacted by the global volatility in the energy markets. O2C refers to RIL’s oil to chemicals business, which includes refining, petrochemicals, and fuel retailing segments.
O2C’s quarterly Ebitda was at Rs 13,093 crore, down 14.3 per cent from a year ago. The decline in O2C’s Ebitda, the company said, was owing to weakness in transportation fuel cracks, chemical margins, and polyester chain deltas.
Net debt for the company, as of June 2024, was at Rs 1.12 trillion; consolidated gross debt was Rs 3.04 trillion. Capital expenditure for the quarter gone by, the company said, was at Rs 28,785 crore.
Depreciation for the quarter was also 15.5 per cent higher Y-o-Y at Rs 13,596 crore, which the company said was due to an expanded asset base across all the businesses, higher network utilisation in the digital services business, higher retail store count, and ramp-up in upstream production.
First Published: Jul 19 2024 | 7:50 PM IST
