On January 19, 2024, Reliance Industries Limited (BSE, NSE: RELIANCE) announced its Q3 2023-24 results, registering a series of ups in its EBITDA metrics in overall Q3 results, but especially in the industry segments of Oil & Gas, Retail, and Jio platforms.
Additional Read: Q3 Results Dashboard
Table of Content
Result Takeaways
Reliance Industries Limited may have fallen short of industry expectations for its Q3 FY24 results, but it has outdone itself this quarter with a series of “highs” in its operations and overall business. Here are the key highlights of Q3 results for Reliance Industries Limited, quarterly performance based on Q3 FY24 versus Q3 FY23 regarding key metrics:
Gross Revenue
- The Revenue for JPL rose by 11.4% YoY, driven by strong subscriber growth across homes and mobility, and the benefit of mixed improvement in ARPU.
- The Revenue for RRVL went up by 22.8% YoY with robust growth across all consumption streams (Grocery at 41%, Fashion & Lifestyle at 28%, and Consumer Electronics at 19%).
- O2C Revenue went down by 2.4%, mainly due to lower price realisation driven by a 5.3% YoY decline in the average Brent crude oil prices.
- The Revenue from the segment of Oil & Gas increased significantly, mainly due to higher volumes, offset in part by lower price realisation from the KG D6 field.
EBITDA
- EBITDA went up by 16.7% YoY to ₹44,678 Cr ($ 5.4 billion).
- EBITDA surged, in large part, due to an 11.5% YoY increase in JPL EBITDA with higher revenue and an increase in margins.
- Q3 witnessed a healthy 31.1% increase in RRVL EBITDA driven by record footfalls in the festive season. The EBITDA margin for RRVL went up by 50bps to 8.4%. This reflects operating leverage and a consistent concentration on cost management initiatives.
- There has been a sustained performance in the O2C segment led by higher gasoline cracks and beneficial feedstock sourcing, partly offset by lower chemical margins downstream and planned inspection and maintenance shutdown.
- The planned inspection and maintenance shutdown of FCCU, CDU, delayed coking, and the ROGC complex affected yields as well as profitability. The O2C EBITDA would have likely been higher on a YoY basis and comparable on a QoQ basis if all the main units were made available during Q3 FY24.
- The EBITDA of the Oil and Gas segment surged, by 49.6%, driven by 72.6% higher gas plus condensate production from the KG D6 field.
Depreciation
- For Q3 FY24, Depreciation went up by 26.7% YoY, to ₹12,903 Cr ($ 1.6 billion) on an expanded asset base spread over all the conglomerate’s businesses.
- This was also due to higher network utilisation in the business of Digital Services and a ramp-up in production upstream.
Finance Costs
Finance Costs in Q3 FY24 went up by 11.3% YoY, to ₹5,789 Cr ($ 696 million) largely on account of higher loan balances and higher interest rates.
Tax Expenses
For Q3 FY24 increased by 22.1% YoY, to ₹6,345 crore ($ 763 million).
Profit after Tax
The PAT or Profit After Tax for Q3 improved by 10.9% YoY, and stood at ₹19,641 crore ($ 2.4 billion).
Capital Expenditure
Capital Expenditure for Q3 was ₹30,102 crore ($ 3.6 billion). Investments included the 5G rollout across India, the expansion of infrastructure in the Retail Segment, and the new Energy business.
The Management’s Take on Q3 Results
The Chairman and MD of Reliance Industries had some key aspects of Q3 results to share and these are highlighted below:
- The Company has delivered a successful quarter that displays strength in operations and soundness in the Company’s financials. This is largely due to the teams that are exceptional across all business segments of the conglomerate.
- Regarding the 5G rollout, the Company is delighted that Jio has completed the most rapid rollout in the country, with every city poised to experience this new technology.
- The robust uptake of JioAirFiber and JioBharat phones has led to the continued expansion of the base of Jio’s subscribers.
- The segments of Retail and Oil & Gas have done remarkably well in Q3 FY24. The Oil & Gas segment has generated its highest-ever EBITDA in any quarter so far.
- Concerning gas production in India, KG D6 is now contributing 30% of India’s gas production, promoting a cleaner and greener future.
- The O2C segment delivered robust performance supported by healthy domestic demand and operational flexibility.
- In a first in its ongoing commitment to sustainability, the Company has successfully chemically recycled pyrolysis to circular polymers.
- The New Energy Giga Complex is prepared for commission soon.
Additional Read: Reliance Industries
Financial Results at a Glance
Here is a glimpse of the financial results of Q3 (figures in ₹ Crore except where indicated by %):
| Metrics | Q3 FY 2023-24 | Q2 FY 2023-24 | Q3 FY 2022-23 | YoY Change % |
| Gross Revenue | 248,160 | 255,996 | 240,532 | 3.2% |
| EBITDA | 44,678 | 44,867 | 38,286 | 16.7% |
| EBITDA % | 18.0% | 17.5% | 15.9% | 210 bps |
| Profit Before Tax | 25,986 | 26,551 | 22,902 | 13.5% |
| Profit After Tax (PAT) | 19,641 | 19,878 | 17,706 | 10.9% |
Additional Read: Blue Chip Stocks
Q3 FY24 Result Summary
Reliance Industries Limited needs no introduction as one of India’s globally recognised conglomerates with a focus on key areas across diverse industrial segments. With the Company “born to succeed” since its inception, RIL or Reliance Industries Limited is responsible for several industry firsts in most of the quarters it goes through, besides exemplary financial performance. Consistently meeting demands in key segments in Q3 FY24, the Company continues to head the industry in the Retail and Oil & Gas areas, not to mention its network and communication aspects, especially in the expedition of the 5G rollout and the sheer extended reach of this across India. Going from strength to strength seems to be the Company’s mantra as it reports growth in all areas of its operations.
To summarise, the Company, through its operational discipline, has remained resilient in challenging markets, with robust demand spread over energy and consumer markets. Despite headwinds in the economy, O2C earnings are steady in Q3 FY24. Growth in the festive season was particularly strong in the Retail segment, and this was largely boosted by diverse offerings from the Company. In Q3 FY24, the Company remains on the fast track to establish new facilities with its healthy cash flows, strong balance sheet, and moderating CAPEX.
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