India’s Reliance energy, retail business reports huge profits
ANNUAL EBITDA CROSSED BENCHMARK OF ₹ 150,000 CRORE FOR THE FIRST TIME
RECORD ANNUAL CONSOLIDATED PROFIT AFTER TAX AT ₹ 74,088 CRORE ($ 9.0 BILLION), UP 14.0%Y-o-Y
RECORD QUARTERLY CONSOLIDATED EBITDA AT ₹ 41,389 CRORE ($ 5.0 BILLION), UP 21.8% Y-o-Y
JIO EXTENDS MARKET LEADERSHIP IN 5G ROLLOUT WITH COVERAGE ACROSS > 2,300 CITIES/ TOWNS
RELIANCE RETAIL RECORDED ACCELERATED STORE OPENING WITH OVER 3,300 NEW STORES TAKING TOTAL AREA TO 65.6 MN SQ FT
STRONG BUSINESS PERFORMANCE OF O2C LED BY EXCELLENCE IN OPERATIONS, OPTIMISED FEEDSTOCK COST AND SUPPORTIVE PRODUCT MARGINS
Quarterly Performance (4Q FY23 vs 4Q FY22)
• Gross Revenue was ₹ 239,082 crore ($ 29.1 billion), up 2.8% Y-o-Y, supported by continuing growth momentum in consumer businesses. Digital Services segment achieved 15.4% Y-o-Y growth while Retail segment grew by 19.4% Y-o-Y. Revenue from Oil & Gas segment doubled Y-o-Y on account of higher price realisations. However, this was partially offset by decrease in revenue from O2C business on account of sharp decrease in crude oil prices and lower price realisation on downstream products.
• EBITDA increased by 21.8% Y-o-Y to ₹ 41,389 crore ($ 5.0 billion), on account of:
o Higher revenue and increase in margins in Digital Services Segment.
o Favorable mix, sourcing benefits and operating efficiencies in Retail segment.
o Higher transportation fuel cracks and optimised feedstock cost partially offset by lower downstream chemical margins in O2C segment.
o Better gas price realization and higher volumes in the Oil & Gas segment.
• Depreciation increased by 43.2% Y-o-Y to ₹ 11,456 crore ($ 1.4 billion) due to expanded asset base across all the businesses and higher network utilization in Digital Services business.
• Finance costs increased by 63.6% Y-o-Y to ₹ 5,819 crore ($ 708 million) primarily due to higher interest rates and loan balances.
• Tax Expenses of ₹ 2,787 crore ($ 339 million) in 4Q FY23 were lower on account of lower deferred tax in Q4 FY23.
• Profit after tax improved by 18.3% Y-o-Y at ₹ 21,327 crore ($ 2.6 billion).
• The Capital Expenditure for the quarter ended March 31, 2023 was ₹ 44,413 crore ($ 5.4 billion).
Commenting on the results, Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries Limited said: “I am happy to note Reliance’s initiatives in digital connectivity and organized retail are driving greater efficiencies in the economy and contributing to India’s emergence as one of the fastest growing economies in the world.
Jio continues to digitally empower millions of citizens across the nation, extending True 5G reach to 2,300+ cities and towns in a short span of 6 months. With steady growth in mobility and FTTH subscriber base and an expanding bouquet of content and digital services, the Jio business continues to deliver impressive growth in operating profits.
Retail business registered excellent growth numbers backed by expansion of physical and digital footprint and a significant increase in footfall. We continue to expand our product base across consumption baskets, ensuring our customers get world-class products at affordable prices. Our retail team has an unwavering focus on enhancing consumer experience and ease of shopping.
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.
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.
Implementation of our New Energy giga factories at Jamnagar is making significant progress. 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.”
Information Source: Read More ” investor.relations@ril.com
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