Reliance Industries profit declines 11% to Rs 16,011 crore in June quarter

Billionaire Mukesh Ambani-backed oil-to-telecom conglomerate Reliance Industries on Friday, July 21, reported net profit of Rs 16,011 crore in the first quarter of current financial year. Reliance Industries' net profit declined 11 per cent compared with Rs 17,955 crore during the same period last year.

Reliance Industries revenue from operations fell 5.32 per cent to Rs 2,10,831 crore compared with Rs 2,22,664 crore during the same period last year.

Reliance Industries EBITDA also known as operating profit rose 5.1 year-on-year (Y-o-Y) to Rs 41,982 crore. 

EBITDA growth was led by consumer and upstream businesses, which offset decline in O2C earnings. O2C earnings were lower due to a sharp fall in fuel cracks from exceptionally high levels in 1Q FY23. 

Higher subscriber base and customer engagement led revenue and profitability growth for Digital Services. Retail earnings reflect expanded footprint and improved profitability with operating leverage. Higher production and realizations contributed to growth in Oil & Gas EBITDA, the country's most valuable company said.

"Reliance’s strong operating and financial performance this quarter demonstrates the resilience of our diversified portfolio of businesses that cater to demand across industrial and consumer segments. Jio’s wide range of quality offerings at affordable price points has enabled strong growth in subscriber base, which reflects in the financial performance of the digital services business,” said Mukesh Ambani, chairman and managing director, Reliance Industries. 

“Accelerated roll-out of Jio’s True 5G services is propelling the nation’s digital transformation at an unprecedented pace. In another step towards democratising internet in India, Jio launched the “JioBharat” Phone Platform, making internet technology accessible and affordable to every Indian," he added.

Reliance Jio Earnings

Reliance Industries telecom arm Reliance Jio reported its slowest profit and revenue growth in six quarters hit by higher expenses and a lack of recent tariff hikes.

Jio, India's biggest telecom carrier by subscribers, said net profit climbed to Rs 4,863 crore in April-June from Rs 4,335 crore a year earlier.

Jio's average revenue per user (ARPU), a key metric to measure telecom firm's profitability, improved to Rs 180.50 per month in Q1 compared with Rs 175.70 in the year ago period.

Reliance Retail's net profit jumped 19 per cent to Rs 2,448 crore compared with Rs 2,061 crore during the same period last fiscal. Its EBITDA jumped 34 per cent to Rs 5,139 crore as against Rs 3,837 crore.

Reliance Industries board recommended a dividend of Rs 9 per fully paid up equity share of Rs 10 each for the financial year ended March 31, 2023. 

Reliance Industries shares ended 3.19 per cent lower at Rs 2,536.20 ahead of its earnings announcement.