Reliance Industries Q1 net profit declines 5% to Rs 15,138 crore

Billionaire Mukesh Ambani-backed Reliance Industries reported a consolidated net profit of Rs 15,138 crore for the first quarter of the current financial year, marking a 5.45 per cent decline from Rs 16,011 crore during the same period last year. 

Despite the drop in profit, the oil-to-telecom conglomerate saw a 12 per cent rise in revenue from operations, which reached Rs 2,36,217 crore, up from Rs 2,10,831 crore.

The decrease in profit was attributed to a 14 per cent annual increase in total expenses, which amounted to Rs 2,16,966 crore, according to the company's financial statement.

Earnings before interest, taxes, depreciation, and amortisation (EBITDA), also known as operating profit, rose by 2 per cent to Rs 38,765 crore. However, the operating profit margin fell to 16.47 per cent from 18.07 per cent in the year-ago period.

"Consolidated EBITDA for the quarter improved from a year ago with strong contributions from Consumer and Upstream businesses offsetting a weak O2C operating environment. Reliance’s resilient operating and financial performance in this quarter underscores the strength of its diverse portfolio of businesses. Importantly, these businesses are contributing significantly to India’s growth, providing vital energy and vibrant channels for digital and physical distribution of goods and services," said Mukesh Ambani, chairman and managing director of Reliance Industries.

Jio Platforms, a subsidiary of Reliance Industries, reported an 11 per cent increase in net profit to Rs 5,698 crore, with its total subscriber base surging to 490 million, including 130 million 5G users. Jio has become the largest 5G operator outside China, the company said in a press release.

"The digital services business registered an impressive financial performance year-on-year, continuing its positive growth momentum. Jio’s True 5G network, covering approximately 85 per cent of India’s 5G capacity, continues to attract users, while the fixed broadband offerings are witnessing increasing consumer traction both in homes and enterprises. The attractive value proposition offered by Jio is enabling more Indians to transition to next-gen data networks, further accelerating the digital revolution reshaping communications, analytics, computing, media, entertainment, and commerce in India. Jio is committed to providing the best-quality state-of-the-art network at the most affordable prices globally," Ambani said on Jio’s performance.

The average revenue per user (ARPU), a key metric of telecom profitability, remained unchanged sequentially at Rs 181.7 per user per month.

Reliance Retail Ventures, led by Isha Ambani, posted a 5 per cent increase in net profit, reaching Rs 2,549 crore. During the quarter, Reliance Retail added 331 stores, bringing its total to 18,918 stores, with an operational area of 81.3 million sq. ft.

“Reliance Retail delivered resilient performance during the period and strengthened its position as India's foremost retailer. The steady expansion and growth of our retail business not only signifies our commitment to customer centricity but also mirrors the resilience and vitality of the Indian growth narrative. We continue to make strides in delivering better retail experiences for our customers as we embrace innovation to improve products, processes, and platforms along with integrating advanced technologies,” Isha Ambani said.

Reliance Industries shares were 1.92 per cent lower at Rs 3,109.50 ahead of its earnings announcement.