RIL Q4: Revenue slips 2% QoQ, net profit comes in at Rs 19,299 crore

Reliance Industries (RIL) on April 21 reported a 22. 2 per cent quarter-on-quarter (QoQ) jump in its consolidated net profit at Rs 19,299 crore for the quarter ended March 2023.  Revenue from operations slipped 1.9 per cent to Rs 216,376 crore. The profit was higher than the estimates of ZEE Business Research analysts, who had projected the numbers to come in at Rs 17,500 crore, up 10.8 per cent on a sequential basis. 

The company's EBITDA increased by 21.8 per cent YoY to Rs 41,389 crore, on account of higher revenue and an increase in margins in the Digital Services Segment. Besides, favourable mix, sourcing benefits and operating efficiencies in the Retail segment, too aided EBITDA's growth. Further, higher transportation fuel cracks and optimised feedstock costs are partially offset by lower downstream chemical margins in the O2C segment. Better gas price realisation and higher volumes in the Oil & Gas segment also supported numbers, the company said.

RIL's net debt as of March 31, 2023, was Rs 110,218 crore ($ 13.4 billion), of which outstanding debt and cash and cash equivalents were Rs 314,708 crore ($ 38.3 billion) and Rs 204,490 crore ($ 24.9 billion), respectively.

Key segments' performance

Jio Platforms (Consolidated)

The company's digital arm Jio Platforms reported a 14.4 per cent YoY rise in revenue at Rs 29,871 crore while its EBITDA stood at Rs 12,767 Crore, up 16.9 per cent YoY. Net profit rose 15.6 per cent YoY to Rs 4,984 crore. The company added 29 million subscribers during the quarter. ARPU or average revenue per user increased 6.7 per cent YoY due to the impact of the tariff hikes, better subscriber mix and data add-ons within select customer cohorts. 

Commenting on the result, Akash M Ambani, Reliance Jio Infocomm Limited Chairman, said, “Jio has taken formidable strides in pioneering 5G rollout across the country with the unmatched speed of execution. 5G has led to a significant improvement in customer experience, reflected in the higher engagement levels among Jio users. Jio remains committed to building a robust digital society with tailor-made technology platforms which will drive sustained growth in earning and value for all stakeholders.”

OIL TO CHEMICALS or O2C (Consolidated)

The O2C segment's revenue during the quarter came in at Rs 128,633 crore, down 11.8 per cent YoY while Ebitda came in at Rs 16,293 crore, up 14.4 per cent YoY. Exports comprised over 60 per cent of revenue, at Rs 78,851 crore ($ 9.6 billion), down 0.4 per cent YoY, as per the company's press release.  "The O2C segment posted its highest-ever operating profit despite global uncertainties and disruptions in commodity trade flows. Our oil and gas segment also delivered very strong growth and is now poised to contribute nearly 30 per cent of India’s domestic gas production," said Mukesh D. Ambani, Chairman and Managing Director.

Oil & Gas (Exploration & Production)

The Oil & Gas segment registered a revenue of Rs 4,556 crore for the quarter under review, up 127 per cent YoY and EBITDA stood at Rs 3,801 crore, up 144.3 per cent YoY. The company said the average price realised for KGD6 was $11.39 /MMBTU in 4QFY23 against $ 6.13 / MMBTU in 4Q FY22. The average price realised for Coalbed Methane (CBM) was $19.57 /MMBTU against $7.638 / MMBTU in 4Q FY22.

The company also informed that Singapore gasoline 92 RON cracks rose by $3.3/bbl Y-o-Y and averaged at $14.7/bbl in FY23 from $11.4/bbl in FY22. Cracks improved due to increased demand as travel slowly returned to pre-pandemic level on the easing of Covid-19 restrictions, increase in China demand and US refinery outages. 

Reliance Retail (Consolidated) 

The company's retail arm Reliance Retail recorded a revenue of Rs 69,267 crore, up 19.4 per cent YoY while its EBITDA rose 32.6 per cent YoY to Rs 4,914 crore. The net profit during the quarter stood at Rs 2,415 crore, up 12.9 per cent YoY. 

Commenting on the fourth quarter results, Mukesh D. Ambani, Chairman and Managing Director, of Reliance Industries Limited, said, "Implementation of our New Energy giga factories at Jamnagar is making significant progress. This puts us on track to achieve our goals of transitioning to cleaner energy and enabling sustainable growth. I believe Reliance’s significant investments and strategic partnerships in the renewable energy vertical will help transform the energy landscape of India and the world, in the coming years.”