• Mon. Jun 17th, 2024

RIL’s Profit Rises 10% to ₹19.6k Cr in Q3 Powered by Oil & Gas, Jio | India Business News


Jan 19, 2024
RIL's Profit Rises 10% to ₹19.6k Cr in Q3 Powered by Oil & Gas, Jio | India Business News


MUMBAI: Reliance Industries (RIL), India’s largest company in terms of market value, reported a 10% rise in quarterly profit on Friday, benefiting from the strength of its oil & gas business as well as its fast-growing digital services (Jio) and retail businesses. Profit grew to Rs 19,641 crore in Q3FY24.
However, its mainstay oil-to-chemical (O2C) business was hurt by lower price realisations. Revenue totalled over Rs 2.27 lakh crore, up about 4%. Operating profit, a yardstick for underlying business performance, increased about 16% to Rs 42,371 crore.
Operating profit of digital (Jio) climbed 11% to Rs 14,261 crore due to strong revenue growth. However, Jio’s average revenue per user (ARPU) – a key metric that influences income – was at Rs 182 in Q3FY24, up just about 2%. ARPU is the total revenue of the telecom operator divided by the number of users on its network. Launched in 2016, Jio has about 471 million customers as of December 31, 2023 and saw data and voice traffic growth of 32% and 8% on its network.
“The strong uptake of the JioBharat phone and JioAirFiber services has resulted in continued expansion of Jio’s subscriber base, contributing to the stellar growth numbers of the digital services business,” said chairman and MD Mukesh Ambani.
Operating profit of the retail business jumped 31% to Rs 6,271 crore, led by higher contribution from grocery, fashion & lifestyle and consumer electronics verticals and driven by operating leverage. Reliance Retail has 18,774 outlets as of December 31, 2023. “The retail segment has also delivered an impressive financial performance with its rapidly expanding physical as well as digital footprint,” Ambani said.
Operating profit of O2C was flat at Rs 14,064 crore. Earnings were also impacted as some of the units at RIL’s Jamnagar facility were shut for maintenance activities for almost two months during the Dec quarter. The units are generally shut for maintenance once every seven-eight years. Had all the units been available during the December quarter, then the operating profit of O2C would have been higher. “The O2C segment delivered resilient performance aided by operational flexibility and strong domestic demand,” Ambani said.
Operating profit of oil & gas shot up almost 50% to Rs 5,804 crore on account of higher volumes partly offset by lower price realization from the KG D6 Field. “The oil & gas segment posted its highest ever quarterly (operating profit). KG D6 is now contributing 30% of India’s gas production, fueling its transition towards a greener and cleaner tomorrow,” Ambani said. The media unit made an operational loss of Rs 15 crore in Q3FY24. RIL’s gross debt at the end of Q3FY24 was Rs 3.11 lakh crore, and it had Rs 1.92 lakh crore in cash and cash equivalents.


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