News

Published: Apr 24, 2023
Updated: Apr 24, 2023

Reliance Industries Records Double-Digit Profit Growth in Q4FY23

Reliance Industries Limited (RIL), owned by billionaire Mukesh Ambani, reported impressive double-digit growth in profitability for the March 2023 quarter (Q4FY23). Consolidated PAT (profit after tax) increased by 19.11% YoY and 22.21% QoQ, while revenue from operations showed mixed results, with a slight increase of 2.1% YoY, but a drop of 1.91% sequentially.

O2C Business Records a Record EBITDA in Q4FY23

RIL's O2C (Oil to Chemicals) business recorded a record EBITDA (earnings before interest, taxes, depreciation, and amortization) of ₹16,293 crore, a 14.4% surge in Q4FY23. However, the segment's revenue declined by 11.8% YoY to ₹128,633 crore during the quarter. EBITDA margin increased by 290 bps YoY, driven by transportation fuel cracks, optimized feedstock cost, and advantageous ethane cracking economics, partially offset by lower polyester chain margins. SAED (Special Additional Excise Duty) on transportation fuels had a negative impact on earnings of ₹711 crore.

Jio Continues to Empower Millions Across India

Mukesh Ambani stated that Jio, RIL's digital services business, continues to empower millions of people across the country by extending true 5G reach to 2,300+ cities and towns in just six months. With a steady increase in the mobility and FTTH (Fiber to the Home) subscriber base, and an expanding range of content and digital services, Jio's operating profits continue to grow impressively.

Four Key Boosters for RIL's Operating Profit Performance in Q4FY24

● RIL's EBITDA increased by 23.1% YoY to ₹154,691 crore ($18.8 billion) in Q4FY24, boosted by:

● The Digital Services segment, which saw a 24.9% growth in EBITDA due to revenue increases and steady improvements in margins.

● The Retail segment, which experienced a 44.7% growth in EBITDA, thanks to margin expansion from scale and operating leverage benefits.

● The O2C segment, which had a 17.7% growth in EBITDA, primarily due to the sharp improvement in fuel cracks, partially offset by SAED on the export of transportation fuels and lower downstream product delta.

The Oil & Gas segment, which recorded a 149.0% EBITDA growth, driven by higher gas price realization.

RIL leads India with largest m-cap

RIL's Q4FY23 performance was impressive, with double-digit growth in profitability and a record EBITDA in the O2C segment. Jio continued to empower millions across India, while RIL's four key boosters are expected to drive operating profit performance in Q4FY24.