Reliance Q4 results: Profit jumps 19% to ₹19,299 crore

Reliance Industries Ltd recorded a 19% year-on-year increase in its consolidated net profit for the quarter ended March.

The Mukesh Ambani-led conglomerate posted a profit of ₹19,299 crore for the fourth quarter compared with ₹16,203 crore in the year-ago period.

Revenue from operations rose 2% year-on-year to ₹2.16 lakh crore in Q4 as against ₹2.11 lakh crore in the corresponding quarter last year.

RIL's earnings before interest, taxes, depreciation, and amortisation (EBITDA) jumped 21.8% year-on-year to ₹41,389 crore on account of higher revenue and increase in margins in the digital services segment, favorable mix, sourcing benefits and operating efficiencies in the retail segment, higher transportation fuel cracks and optimised feedstock cost partially offset by lower downstream chemical margins in oil-to-chemicals segment, and better gas price realisation and higher volumes in the oil & gas segment, according to its stock exchange filing.

The digital services segment achieved 15.4% year-over-year growth while the retail segment grew by 19.4%. Revenue from the oil & gas segment doubled on account of higher price realisations. However, this was partially offset by a decrease in revenue from the oil-to-chemicals business on account of the sharp decrease in crude oil prices and lower price realisation on downstream products.

RIL's finance costs soared 63.6% to ₹5,819 crore, primarily due to higher interest rates and loan balances. Tax expenses of ₹2,787 crore in Q4 FY23 were lower on account of lower deferred tax in the quarter. Reliance Industries' capital expenditure for the quarter ended March was ₹44,413 crore.

"O2C segment posted its highest-ever operating profit despite global uncertainties and disruptions in commodity trade flows. Our oil and gas segment also delivered very strong growth and is now poised to contribute nearly 30% of India's domestic gas production," says Reliance Industries chairman Mukesh Ambani.

The retail business registered 'excellent growth numbers' backed by the expansion of physical and digital footprint and a significant increase in footfall, says the RIL chairman. "We continue to expand our product base across consumption baskets, ensuring our customers get world-class products at affordable prices," he says.

On Reliance's telecom arm Jio, Ambani says the business continues to deliver 'impressive growth' in operating profits. Net profit of Jio, India's largest telecom operator, rose 13% year-on-year (YoY) to ₹4,716 crore in the fourth quarter.

"This year we have proposed to demerge our financial services arm and list the new entity Jio Financial Services Ltd. This gives our shareholders an opportunity to participate in an exciting new growth platform from inception," says Ambani.

The implementation of RIL's New Energy giga factories at Jamnagar is making significant progress, according to Ambani. "This puts us on track to achieve our goals of transitioning to cleaner energy and enabling sustainable growth. I believe Reliance's significant investments and strategic partnerships in the renewable energy vertical will help transform the energy landscape of India and the world, in the coming years," he adds.