Whalesbook
Reliance Industries Ltd (RIL) posted largely steady earnings for the December quarter, announcing a marginal 0.56% year-on-year rise in consolidated net profit to ₹18,645 crore.
Revenue from operations, however, showed robust growth, climbing 11% to ₹2.69 lakh crore. This top-line expansion was primarily driven by the conglomerate's key business segments, Jio and Oil-to-Chemicals (O2C).
Steady Operating Performance
Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) for the quarter reached ₹50,932 crore, marking a 6% increase year-on-year. This improvement reflects strong operational execution across RIL's diverse portfolio.
On a sequential basis, net profit increased by approximately 3% from the September quarter, with revenues also seeing a 4% uplift, indicating sustained momentum.
Mukesh Ambani, chairman and managing director of RIL, stated the company is entering a "new phase of value creation" with initiatives in Artificial Intelligence and New Energy. He expressed confidence in RIL's pioneering role in these evolving technologies, aiming to deliver sustainable solutions globally.
Segmental Growth Drivers
The Oil-to-Chemicals (O2C) business saw revenues grow 8% to ₹1.69 lakh crore. Segment EBITDA surged 15% year-on-year to ₹16,507 crore, benefiting from higher transportation fuel cracks and improved sulphur realisations.
These gains were partially offset by weaker downstream chemical margins and increased feedstock freight rates. Favourable ethane cracking economics and domestic market demand provided support.
Jio-bp, the fuel retailing arm, expanded its network by 14% year-on-year to 2,125 outlets. This expansion fueled significant volume growth, with high-speed diesel (HSD) volumes up 24.7% and motor spirit (MS) up 20.8%.
Investment and Expenses
Capital expenditure for the quarter stood at ₹33,826 crore ($3.8 billion), directed towards growth projects in O2C and new energy, alongside network expansion for Jio and Retail.
Depreciation rose 11% year-on-year to ₹14,622 crore, while finance costs increased 7% to ₹6,613 crore, largely attributed to the operationalization of 5G spectrum assets. Tax expenses climbed 10% to ₹7,530 crore.