Reliance posted its earnings for the quarter ended June on Friday evening.

What Happened: Reliance’s net profit for the quarter ended June came in at ₹15,138 crore, down around 5% from the ₹16,011 crore posted in the same quarter last year, Revenue from operations for the June quarter stood at ₹2.36 lakh crore, up around 12% from the ₹2.10 lakh crore posted in the corresponding quarter of the previous year.

While the company’s revenue was mostly in line with street estimates of around ₹2.34 lakh crore, net profit fell short of the brokerage estimates of around ₹17,000 crore. EBITDA for the quarter came in at ₹42,748 crore, up around 2% from the ₹41,906 crore posted in the same quarter last year. EBITDA margin for the June quarter was at 16.6%.

The conglomerate’s telecom subsidiary Jio reported a 2.02% quarter-on-quarter (QoQ) rise in standalone net profit for the quarter ended June 2024 to ₹5,445 crore, up from ₹5,337 crore reported in the March quarter. The company saw its revenue from operations increase to ₹26,478 crore, marking a 2% rise during the quarter ended June, compared to ₹25,959 crore in Q4FY24. Jio’s average revenue per user stood at ₹181.7.

“Growth in revenue from operations was primarily driven by robust subscriber growth across mobility and homes,” Jio said in a release.

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Reliance retail venture’s gross revenue came in at ₹75,615 crore, up 8.1% from the ₹69,948 crore posted in the same quarter last year. The vertical’s EBITDA stood at ₹ 5,664 crore which was up by 10.5% from the ₹5,127 crore posted in the corresponding quarter of the previous.

The company said that the increase in EBITDA was led by footfalls and expansion of store footprint, streamlining of operations driving margin improvement. The business expanded its store network with 331 new store openings taking the total store count to 18,918 with area under operation at 81.3 million sq. ft.

Oil to chemicals revenue rose up 18.1% Y-o-Y to ₹1.57 lakh crore “primarily on account of higher product prices tracking ~9% increase in Brent crude oil prices, and higher volumes supported by strong domestic demand.” However, EBITDA for the segment took a 14.3% Y-o-Y hit at ₹ 13,093 crore. The slump was attributed to lower transportation fuel cracks, particularly gasoline cracks which were down 30% Y-o-Y

The oil and gas segment posted revenue at ₹6,179 crore, which is higher by 33.4% as compared to the ₹4,632 crore posted in the corresponding quarter of the previous year. This was mainly on account of higher volumes partly offset by lower price realisation from KG D6 and CBM Field.

Price Action: Reliance’s share price was down 1.99% to close at ₹3,110.30 on Friday.

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photo by Poetra.RH for shutterstock.