Investor Presentation
Recovery in retail, telecom rate hike offset oil, gas low income growth
This story was originally published at 23:30 IST on 16 January 2025
Register to read our real-time news.Informist, Thursday, Jan. 16, 2025
Please click here to read all liners published on this story
--RIL: Growth in consumer, oil-to-chemicals businesses strong in Oct-Dec
--CONTEXT: Comments of RIL mgmt in investor presentation on Oct-Dec earnings
--RIL:Festival demand, higher productivity aided Oct-Dec retail ops EBITDA
--RIL: Trend in margins of oil-to-chemicals business was mixed in Oct-Dec
--RIL: Digital svcs, retail ops aided YoY growth in Oct-Dec consol EBITDA
--RIL: Strong domestic demand aided oil-to-chemicals revenue in Oct-Dec
--RIL: Record home connects of 2 mln in digital broadband svcs Oct-Dec
--RIL: Tariff hike, upscaling aided Jio Platforms revenue in Oct-Dec
--RIL: Jio Platforms Oct-Dec EBITDA margin 50.1% vs 50.4% year ago
--RIL: Full impact of tariff hike by Jio Platforms in Jul still to play out
--RIL: Jio Platforms Oct-Dec EBITDA INR 165.9 bln vs INR 139.6 bln year ago
--RIL: Reliance Retail B2C business growth led by big box formats Oct-Dec
--RIL: Reliance Retail Campa beverage mkt share around 10% in some states
--RIL: See gas prices staying firm in near term
--RIL:Demand-supply dynamic mismatch continued Oct-Dec, impacted energy mkt
--RIL: Polymer margins to remain range-bound amid supply over-hang
--RIL: Saw weak downstream margin environment in energy business Oct-Dec
By Rajesh Gajra
NEW DELHI – Strong recovery in subsidiary Reliance Retail Venture Ltd's revenue, and upscaling and tariff hike-led revenue growth in subsidiary Jio Platforms Ltd, enabled Reliance Industries Ltd to offset the impact of low revenue growth in oil-to-chemicals segment and revenue fall in oil and gas segment, during the December quarter, the company said in an investor presentation Thursday.
The gross revenue of the company at a consolidated level increased by 7% on year to INR 2.67 trillion.
The company said the 7.8% on-year growth in its consolidated earnings before interest, tax, depreciation and amortisation in Oct-Dec to INR 480.03 billion was driven by an 18.8% jump in EBITDA of Jio Platforms and a 9.5% rise in that of Reliance Retail Ventures. The oil-to-chemicals operations' EBITDA increased by only 2.4% on year, while the EBITDA of oil and gas segment fell 4.1%. Overall, the consumer segment and the oil-to-chemicals businesses performed well in the December quarter, the company management said in the presentation.
The consolidated profit after tax was up 11.7% on year at INR 219.30 billion in the December quarter, aided by the EBITDA and the revenue growth. The company said the December quarter saw a "record operating performance with growth across businesses."
The company said Jio Platforms recorded robust growth led by the impact of tariff hike and a scale-up of home and digital services businesses. The December quarter revenue of this segment jumped 19.2% on year to INR 387.50 billion while the EBITDA was up 18.8% to INR 165.85 billion, and profit after tax rose 26% to INR 68.57 billion.
The EBITDA margin, however, contracted to 50.1% in Oct-Dec from 50.4% a year ago, indicating weak pricing. The company said the data traffic was up 22% on year to 46.5 billion giga byte among Jio Platforms customers and there was a "strong momentum in home subscribers with 2.0 million new home connects."
The company said its retail subsidiary, Reliance Retail Ventures Ltd, saw a "turnaround" in revenues mainly on account of fashion and lifestyle consumption basket and consumer electronics. The company did not specify the quantum of "turnaround" in its fashion and lifestyle segment sales.
The revenue from operations of Reliance Retail Ventures increased 7% on year to INR 795 billion in the December quarter. The previous quarter had seen the company reporting a 3.5?cline on year in its revenue from operations to INR 665 billion.
Reliance Retail Ventures' EBITDA from operations increased by 9.8% on year to INR 66.32 billion, while the net profit rose 10% on year to INR 34.58 billion. Festival demand and higher productivity aided the growth in EBITDA. The company said that the retail grocery business grew 37% on year, which reflected "rapid growth at significantly higher scale relative to other offline and online grocery players."
The company said the 37% on-year growth in the grocery segment of Reliance Retail Ventures "was led by big box formats". The growth was across categories led by general merchandise and value apparel which grew 20% on year. With regard to the recently launched Campa beverage, the company said it has "garnered 10%+ market share in sparkling beverage category in select states."
In the oil and gas segment, the company said the revenue declined 5.2% on year to INR 63.70 billion due to a 5.3?ll in "KG-D6 production volume" and lower gas price realisations. The segment's EBITDA declined 4.1% on year to INR 55.65 billion. The company management said it expects world prices of natural gas to stay firm in the near-term amid liquefied natural gas terminal delays-led supply reductions, and replenishment of inventory from European gas demand.
With regard to the oil-to-chemicals segment of RIL, which includes refining, petrochemicals, aviation fuel and bulk wholesale marketing, the company said that "strong domestic markets and favourable feedstock sourcing supported the resilient performance" in the December quarter. The segment revenue was up 6% on year at INR 1.49 trillion, while EBITDA was up only 2.4% at INR 144.02 billion and EBITDA margin contracted 40 bps on year to 9.6%.
The margin trend was mixed in this segment with divergent growth in gasoil, aviation turbine fuel, polymers, and polyester businesses, the company said. Going forward, the polymer market margins are "likely to remain range-bound due to supply overhang," the company said.
On the energy market environment, the company said the continued mismatch in demand and supply dynamics in the December quarter impacted energy markets. The company said there was a weak downstream margin environment in energy business during the quarter.
Thursday, shares of RIL ended 1.1% higher at INR 1,266.45 on the National Stock Exchange. End
Edited by Akul Nishant Akhoury
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (11) 4220-1000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2025. All rights reserved.
To read more please subscribe
Share this Story:
