- 22 Jan 2024
- ICICIdirect
RELIANCE INDUSTRIES Q3 RESULTS 2024: NET PROFIT RISES IN DOUBLE DIGITS
RELIANCE - 1227 Change: 2.05 (0.17 %)
Reliance Industries reported its Q3FY24 numbers on Friday evening. On Saturday, the stock price was trading 0.24% lower, around Rs 2,728 per share. Let us look at Reliance's quarterly numbers in detail.
About Reliance Industries
Reliance Industries is an Indian conglomerate founded by Dhirubhai Ambani in 1966. It operates in various sectors, including petrochemicals, refining, oil and gas exploration, retail, and telecommunications. It was one of the largest companies in India.
Crucial parameters
- PE: 41.42
- 52-week high: Rs 2,792.65
- Market Cap: Rs 18,45,679.03 crore
- ROE: 9.03
Share price movement
In the last month, Reliance's share price has increased by nearly 7%. In 6 months, the shares have given nearly 6.81% returns to its investors. In one year, the Reliance share has increased by 21.73%. In the five-year time frame, Reliance shares have given investors more than 135% returns, higher than the benchmark indices.
How has Reliance performed in Q3FY24?
Let us look at Reliance's December'23 quarter numbers in detail:
Revenue: The consolidated revenue reported by the company for the quarter ended December was Rs 248,160 crore. The revenue reported was up 3.2% YoY and down 3.1% sequentially. The YoY revenue growth was supported by continued growth momentum in consumer businesses.
EBITDA: The company reported an EBITDA of Rs 44,678 crore for Q3FY24 compared to Rs 44,867 crore in Q2FY24 (0.4% lower sequentially) and Rs 38,248 crore in the year-ago period (16.7% growth YoY). EBITDA growth led by strong consumer business momentum and upstream contribution.
Net Profit: Reliance Industries reported a net profit of Rs 19,641 crore, down 1.2% sequentially and 10.9% YoY. YoY net profit growth at 10.9% was muted by higher finance and depreciation costs. The major drivers for profitability were the consumer businesses and the oil & gas segment.
How have different segments performed under Reliance in Q3FY24?
Reliance Industries has recorded robust numbers for the December quarter, with profit and operating numbers boosted by retail, digital (Jio), and oil & gas businesses. Let us look at the performance of each sector in detail:
Retail: The retail segment reported a revenue of Rs 83,063 crore, a strong double-digit growth of 22.8% YoY. EBITDA was Rs 6,258 crore, a growth of 31.1% YoY. The profit after tax (PAT) reported was Rs 3,165 crore, a 32% growth YoY. The total store count increased by 252 in Q3FY24, taking the total store count to 18,774. The company's footfalls in the stores stood at 282 million, a staggering 40% growth YoY. The company launched a co-branded credit card with SBI Card, offering benefits across segments with varied spending needs.
Digital Servies: The segment includes the Telecom business. Jio reported an operating revenue of Rs 32,510 crore, a growth of 11.4% YoY. EBITDA was 13,955 crore, a growth of 11.5% YoY. ARPU for the December quarter reported was Rs 181.7, a marginal increase of 2% YoY, and remained flat compared to the September quarter. The subscriber base at the end of the December quarter was 47.09 crore, a net addition of 1.12 crore in the December quarter. Data traffic was up 31.5% YoY at 3,810 crore GB increasing the mix of 5G traffic further improves the experience on the 4G network increasing the mix of 5G traffic improves the experience on the 4G network.
O2C: The revenue was down by 2.4% compared to the year-ago period and stood at Rs 1,41,096 crore. However, the EBITDA was up by 1% YoY. Stable EBITDA supported by Domestic demand – Oil up 2.1%, Polymer up 10%, Polyester up 1%. O2C EBITDA would have been higher on YoY and comparable on a QoQ basis if all major units were available during the quarter.
Oil & Gas: The oil & Gas segment reported a revenue of Rs 6,719 crore, up 50.2% YoY. The EBITDA was up 49.6% YoY and stood at Rs 5,804 crore. The company reported its best-ever quarter EBITDA in December quarter. There was a significant increase in volume (gas and condensate) from the MJ field.