Reliance Industries Ltd (RIL) has reported a nearly 2 per cent decline in its consolidated net profits for the quarter ended March 31 but it still came in higher than the Street’s street estimates.

The oil-to-telecom giant posted a net profit of Rs 18,951 crore (attributable to owners) against Rs 19,299 crore in the corresponding period of the previous year. Brokerages had projected net profits at around Rs 18,300 crore due to higher taxes and depreciation.

RIL’s revenue was in line with expectations and stood at Rs 240,715 crore, a 11.30 per cent rise over the Rs 216,265 crore in the year-ago period.

The consumer facing business — Jio Platforms Ltd (JPL) and Reliance Retail — reported double-digit growth in their topline while the oil-to-chemical (02C) business increased its revenues by almost 11 per cent to Rs 142,634 crore compared with Rs 128,634 crore in the corresponding period of the previous year. RIL said this was primarily on account of improved realisation for the transportation fuels segment and higher volumes.

The segment’s earnings before interest, taxes, depreciation & amortisation (EBITDA) showed a 3 per cent increase during the quarter at Rs 16,777 crore compared with Rs 16,293 crore a year ago.

RIL said that the marginal increase was supported by advantageous feedstock sourcing, ethane cracking and higher domestic product placement. However, for the year, the segment revenue decreased by 5 per cent to Rs 564,749 crore.

The company attributed this to lower product price realisation following a 13.5 per cent decline in average Brent crude prices which was partially offset by higher volumes.

While the fourth quarter saw global oil demand rising due to higher demand mainly from the Americas and Asia, RIL said that the period was marked by a decline in Singapore oil gasoline crack (the difference between price of crude oil and its products) which fell to $13.3 per barrel from $15 per barrel in the same period of the previous year.

“All segments have posted a 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 Rs 100,000-crore threshold in pre-tax profits,” Mukesh Ambani, chairman and managing director, RIL, said while commenting on the results.

Profit before tax in 2023-24 stood at Rs 104,340 crore against Rs 94,022 crore in the preceding fiscal.

Jio ARPU stagnant

While the O2C business recovered during the quarter, Reliance Jio Infocomm (RJIL) met expectations when it reported a net profit of Rs 5,337 crore against Rs 4,716 crore in the corresponding period of the previous year, a 13.16 per cent increase. Revenue grew almost 11 per cent at Rs 25,959 crore against Rs 23,394 crore in the year-ago quarter.

Average revenue per user (ARPU) was stagnant on a sequential basis at Rs 181.7.

RIL indicated that this was on account of the increasing mix of promotional 5G traffic, offered unlimited and not yet charged separately. ARPUs, however, showed an increase of 1.6 per cent over Rs 178.8 in the corresponding quarter of the previous year.

JPL, which represents its digital service business, saw a 13.3 per cent jump in revenues at Rs 33,835 crore over Rs 29,871 crore in the previous year period, while EBITDA advanced by 12.5 per cent to Rs 14,360 crore (Rs 12,767 crore).

RIL said that the numbers continued to be driven by robust subscriber growth across mobility and homes, and the benefit of a mix improvement in ARPU. The company added that it sustained the subscriber addition with Jio outpacing competition and adding 10.9 million net subscribers during the January-March quarter.

The company has informed the bourses that Sanjay Mashruwala, one of the two managing directors at Reliance Jio, has resigned.

Retail shines

The quarter saw Reliance Retail Ventures reporting a 9.8 per cent rise in revenues at Rs 67,610 crore, while EBITDA gained 18.5 per cent at Rs 5,823 crore. The business recorded gross revenue of Rs 3,06,786 crore for the year, a growth of 17.8 per cent over 2022-23. RIL added that the growth was led by growth in consumer electronics and fashion & lifestyle.

Ambani said RIL remained committed to its projects and initiatives, including those in the new energy segment.