Reliance Q4 result: Revenue up 11% YoY, PAT comes almost flat; 5 key highlights

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Led by double-digit growth in oil-to-chemicals (O2C) and consumer business, RIL’s gross revenue increased by 10.8 per cent year-on-year (YoY) to 2,64,834 crore ($31.8 billion).

However, profit after tax (PAT) remained almost flat at 21,243 crore ($ 2.5 billion) against 21,327 crore in the same quarter last year.

The company said its EBITDA increased by 14.3 per cent YoY to 47,150 crore ($ 5.7 billion) with all businesses contributing strongly.

“Initiatives across RIL’s businesses have made a remarkable contribution towards fostering the growth of various sectors of the Indian economy. It is heartening to note that alongside strengthening the national economy, all segments have posted robust financial and operating performance. This has helped the company achieve multiple milestones. I am happy to share that this year, Reliance became the first Indian company to cross the 1,00,000-crore threshold in pre-tax profits,” Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries Limited said.

Let’s take a look at five key highlights of Reliance’s Q4 result:

1. Double-digit revenue, profit, EBITDA growth for Jio Platforms

RIL’s telecom arm Jio Platforms clocked a healthy double-digit growth in revenue, profit and EBITDA.

Jio Platforms’ consolidated revenue from operations for the quarter under review rose 13.4 per cent YoY to 28,871 crore while net profit increased 12 per cent YoY to 5,583 crore.

Consolidated EBITDA for Jio Platforms rose 12.5 per cent YoY to 14,360 crore. EBITDA margin, however, declined 40bps YoY to 49.7 per cent.

ARPU (average revenue per user) for Q4FY24 stood at 181.7, flat QoQ but up 1.6 per cent YoY.

“ARPU was 181.7 with better subscriber mix partially offset by an increasing mix of promotional 5G traffic, offered unlimited to subscribers and not yet charged separately. Engagement levels continued to remain strong with total data and voice traffic increasing by 35.2 per cent and 9.7 per cent YoY, respectively,” the company said.


2. Strong show of Reliance Retail Ventures

As per the company, the retail business delivered strong performance during the quarter with revenue from operations of 67,610 crore, up 9.8 per cent YoY led by growth in consumer electronics and fashion and lifestyle.

Net profit of the segment rose 11.7 per cent YoY to 2,698 crore. EBITDA rose 18.5 per cent YoY while EBITDA margin increased 60bps YoY.

“The business expanded its store network with 562 new store openings with a gross area addition of 7.8 million sq. ft. The quarter recorded footfalls of over 272 million across formats, a growth of 24.2 per cent YoY,” said the company.

“The registered customer base crossed a milestone of 300 million, making Reliance Retail one of the most preferred retailers in the country. During the quarter, the business acquired the India business of Kiko Milano and intellectual property including trademarks, recipes, etc. of sugar-boiled confectionery from Ravalgaon,” the company added.

3. Oil-to-chemicals (O2C) segment remains subdued

The O2C segment’s revenue rose 10.9 per cent YoY to 1,42,634 crore primarily on account of improved realisation for the transportation fuels segment and higher volumes.

However, the segment’s EBITDA saw a mild increase of 3 per cent YoY to 16,777 crore supported by advantageous feedstock sourcing, ethane cracking and higher domestic product placement, the company said. However, the EBITDA margin declined by 90bps YoY.

4. Higher volumes drive oil and gas segment revenue

According to the company, Q4FY24 revenue for the oil and gas (exploration and production) segment jumped by 42 per cent YoY to 6,468 crore mainly on account of higher volumes partly offset by lower price realisation from KG D6 Field.

EBITDA for the segment surged 47.5 per cent to 5,606 crore while the EBITDA margin saw a robust growth of 330bps YoY.

5. Loss for media business

While revenue from operations rose 63 per cent YoY to 2,419 crore in Q4, the segment suffered a loss of 207 crore during the quarter. In the same quarter last year, the company’s loss was 35 crore while in Q3FY24, the segment’s loss was 108 crore.

Its EBITDA plunged 136.3 per cent YoY and its EBITDA margin shrank by 660bps YoY.

“Consolidated EBITDA of the group was impacted by continued investments in sports and digital verticals of Viacom18, the leading drivers of revenue growth for the foreseeable future,” the company said.

News business revenue was up 25 per cent YoY, driven by the strong growth in advertising revenue of both TV and digital platforms.

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Pooja Gupta

CA Pooja Gupta (CA, ISA, having 15 years of experience. Educator and Digital Creator

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CA Pooja Gupta (CA, ISA, having 15 years of experience. Educator and Digital Creator

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