Reliance Industries Limited- Q2 Results

Introduction

Reliance Industries Limited (RIL) is an Indian multinational conglomerate whose businesses comprise energy, natural gas, retail, and telecommunications, among others. The company has its headquarters in Mumbai, Maharashtra, and it is the largest public company in the country in terms of market cap and revenue. RIL is also among the 100 largest companies worldwide, while its exports account for 7% of India’s total merchandise exports.

RIL declared its financial results for the second quarter of the fiscal year on October 27th, with experts and analysts predicting improved operating performance. The company’s shares also ended 1.75% higher on the day ahead of the quarterly results. Here’s a snapshot of the company’s performance during the period under review.

Additional Read: Q2 Results Dashboard

Key Financial Metrics

Performance Highlights (Consolidated)

• Reliance Industries Ltd. reported a net profit (PAT) of ₹19,878 Cr during Q2 FY 2023-24, up 29.7% YoY as against ₹15,512 Cr during Q2 FY 2022-23.
• The company’s gross revenue increased by 1.2% YoY to ₹2,55,996 Cr, compared to ₹252,846 Cr during the corresponding quarter last year.
• The consolidated revenue during the quarter stood at ₹234,956 Cr compared to ₹232,217 reported during Q2 FY 2022-23.
• The EBITDA for Q2 FY 2023-24 stood at ₹44,867 Cr, up 30.2% YoY as against ₹34,447 Cr during Q2 FY 2022-23.
• The EBITDA  margin of RIL rose 390 basis points to 17.5% during the period under review.

Consolidated Financial Highlights

S.No.	Particulars	Q2FY 2023-24	Q1FY 2023-24	Q2FY 2022-23	% Change (YoY)	H1 FY 2023-24	H1 FY 2022-23	FY 2022-23
1	Gross Revenue	₹255,996 Cr	₹231,132 Cr	₹252,846 Cr	1.2	₹487,128 Cr	₹495,375 Cr	₹974,864 Cr
2	EBITDA	₹44,867 Cr	₹41,982 Cr	₹34,447 Cr	30.2	₹86,849 Cr	₹74,382 Cr	₹153,920 Cr
3	EBITDA Margin (%)	17.5	18.2	13.6	390 bps	17.8	15	15.8
4	Depreciation	₹12,585 Cr	₹11,775 Cr	₹9,726 Cr	29.4	₹24,360 Cr	₹18,668 Cr	₹40,303 Cr
5	Finance Costs	₹5,731 Cr	₹5,837 Cr	₹4,554 Cr	25.8	₹11,568 Cr	₹8,551 Cr	₹19,571 Cr
6	Profit Before Tax	₹26,551 Cr	₹24,370 Cr	₹20,167 Cr	31.7	₹50,921 Cr	₹47,163 Cr	₹94,046 Cr
7	Tax Expenses	₹6,673 Cr	₹6,112 Cr	₹4,835 Cr	38	₹12,785 Cr	₹12,426 Cr	₹20,376 Cr
8	Profit After Tax#	₹19,878 Cr	₹18,258 Cr	₹15,332 Cr	29.7	₹38,136 Cr	₹34,737 Cr	₹73,670 Cr
9	Capital Expenditure*	₹38,815 Cr	₹39,645 Cr	₹32,534 Cr	–	₹78,460  Cr	₹63,976 Cr	₹141,809 Cr
10	Outstanding Debt	₹295,687 Cr	₹318,685 Cr	₹294,859 Cr	–	₹295,687 Cr	₹294,859 Cr	₹313,966 Cr
11	Cash & Cash# ^Equivalents	₹177,960 Cr	₹192,064 Cr	₹201,606 Cr	–	₹177,960 Cr	₹201,606 Cr	₹188,200 Cr

^ Cash & Cash Equivalents includes ₹10,347 Cr capital raise in Reliance Retail

# Figures for the previous period restated to reflect the demerger of the Financial Services business

* Excluding amount incurred towards spectrum and is adjusted for capital advances and regrouping of assets

Also Read: Reliance Industries Share Price

Subsidiary Performance

Jio Platforms Limited (JPL)

• As per the company’s exchange filing, Reliance Jio reported a 12% YoY growth in its net profit for Q2 FY 2023-24 to ₹5,297 Cr from ₹4,729 Cr during the same period last year.
• Sequentially, the company reported a 4% QoQ rise in its net profit.
• Reliance Jio’s revenue from operations also increased from ₹24,275 Cr during Q2 FY 2022-23 to ₹26,875 Cr in the quarter under review.
• The EBITDA for Q2 FY 2023-24 stood at ₹13,528 Cr, up 12.6% YoY as against ₹12,011 Cr during Q2 FY 2022-23.

Reliance Retail Ventures Limited (RRVL)

• The revenue for the period under review rose 18.8% YoY to ₹77,148 Cr as against ₹64,920 Cr during Q2 FY 2022-23.
• The Business posted an EBITDA of ₹5,820 Cr, up by 32.2% YoY from ₹4,404 during the corresponding period last year.
• The EBITDA margin from operations on net sales increased to 8.1%, up 70 basis points YoY. 

Oil to Chemicals (O2C) Segment

• The segment revenue for the second quarter of the fiscal year declined by 7.3% to ₹147,988 Cr due to a sharp 14% reduction in crude oil prices.
• The EBITDA for Q2 FY 2023-24 rose 36% YoY at ₹16,281 Cr from ₹11,968 during the same period last year.

Oil and Gas (Exploration and Production) Segment

• The revenue for the period under review grew by 71.8% to ₹6,620 Cr versus ₹3,853 Cr during Q2 FY 2022-23, mainly due to higher production of gas and oil and the commencement of condensate production from MJ field.
• The EBITDA surged to ₹4,766 Cr, up by 50.3% YoY from ₹3,171 Cr during Q2 FY 2022-23.
• EBITDA margin clocked at 72% for the second quarter of the fiscal year.

Also Read: Jio Financial Services Q2 Results

Management Commentary

Major Announcements

• The company’s shareholders approved the appointment of Mr. Mukesh Ambani’s children, namely Isha Ambani, Akash Ambani, and Anant Ambani, as the company’s non-executive directors.
• Reliance Jio also unveiled JioSpaceFiber, the country’s first satellite-based gigabit broadband service, which will be rolled out nationwide soon.

Reliance Industries Limited: H1 Consolidated Financial Figures (YoY)

Particulars	H1 FY 2022-23	H1 FY 2023-24
Revenue from Operations	₹454,881 Cr	₹445,787 Cr
Total Income	₹460,594 Cr	₹453,441 Cr
Total Expenses	₹413,303 Cr	₹402,654 Cr
Profit Before Tax	₹47,163 Cr	₹50,921 Cr
Profit for the Period	₹34,955 Cr	₹38,136 Cr
Total Comprehensive Income	₹18,883 Cr	₹38,352 Cr

Reliance Industries Limited: Consolidated Financial Figures (QoQ)

Particulars	Q1 FY 2023-24	Q2 FY 2023-24
Revenue from Operations	₹210,831 Cr	₹234,956 Cr
Total Income	₹214,644 Cr	₹238,797 Cr
Total Expenses	₹190,350 Cr	₹212,304 Cr
Profit Before Tax	₹24,370 Cr	₹26,551 Cr
Profit for the Period	₹18,258 Cr	₹19,878 Cr
Total Comprehensive Income	₹19,605 Cr	₹18,747 Cr

Reliance Industries Limited: Consolidated Balance Sheet

Particulars	As of September 30, 2023
Total Non-Current Assets	₹1,242,471 Cr
Total Current Assets	₹439,744 Cr
Total Assets	₹1,682,215 Cr
Total Equity	₹877,275 Cr
Total Non-Current Liabilities	₹427,427 Cr
Total Current Liabilities	₹377,513 Cr
Total Liabilities	₹804,940 Cr
Total Equity and Liabilities	₹1,682,215 Cr

Stock Performance Of Reliance Industries Limited

Reliance Industries Ltd. (RIL) declared the financial results for Q2 of FY 2023-24 after the market closed on October 27th. The company’s shares opened at ₹2,242 on Friday and rose 1.75%, closing at ₹2,265.25 apiece on BSE.

About the Company

Reliance Industries Ltd. (RIL), a Fortune 500 company in India, is also the country’s largest private-sector corporation. Originally known as Reliance Commercial Corporation, the company was founded by Mr. Dhirubhai Ambani in the 1950s. Today, the energy-to-telecom company boasts consolidated sales of over US $60 billion and has various subsidiaries, including Jio Platforms, Reliance Retail, and Network 18, among others.

Sources:

https://www.ril.com/getattachment/028201ce-adc0-4689-adf8-611052a1fb1f/Financial%20performance%20for%20the%20quarter/half%20year%20ended%2030%20Sep,%202023.aspx