Reliance Industries Limited (RIL) is an Indian multinational conglomerate company headquartered in Mumbai, Maharashtra, India. It operates in multiple industries, including refining and petrochemicals, oil and gas exploration and production, retail, telecommunications, and media. The company is a diversified conglomerate with a significant presence in India and a growing global footprint. Its focus on innovation, customer satisfaction, and sustainability has helped the company become a leader in multiple industries and continues to drive its growth and success.

Result Analysis: Reliance Industries Limited (CMP: Rs.2536.20)

Result Update: Q1FY24

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    Stock Details

    Market Cap. (Cr.) 1715893
    Equity (Cr.) 6765.61
    Face Value 10
    52 Wk. high/low 2632 / 1979
    BSE Code 500325
    Book Value (Rs) 1213.72
    Sector Refineries

    Key Ratios

    Debt-Equity: 0.40
    ROCE (%): 9.36
    ROE (%): 9.17
    TTM EPS: 98.59
    P/BV: 2.09
    TTM P/E: 25.72

    Result Highlights:

    • Reliance Industries reported a decline in revenue of 5.3% YoY majorly on account of an 18% YoY fall in O2C revenue owing to a correction in crude prices offset by 28% YoY & 2% QoQ higher Oil & Gas revenue, led by increasing production, 13% YoY & 2% higher Digital services revenue, driven by steady subscriber addition, and 19% YoY & 1% QoQ higher Retail revenue.

    • The company reported a record EBITDA of Rs.38,093cr., was unaltered owing to a 150 basis point increase in JPL margins YoY, a 34% increase in retail Ebitda, and a YoY significant decline in fuel cracks that was offset by a strong contribution from oil and gas on greater volume. EBITDA margin increased by 110 bps on YoY basis.

    • PAT was lower by 14% QoQ and 5% YoY basis due to high finance cost, depreciation, and transition to new tax regime.

    • Although Capex declined 10% QoQ, it is anticipated to accelerate as more retail stores are added and 5G networks are deployed across India by December 23. Since short-term loans were taken out because internal cash flow was inadequate to pay for capital expenditures, net debt increased by 1% QoQ.

    • EBITDA for digital services was Rs 13,720cr. (+17% YoY; +2% QoQ), ARPU increased to 180.5, and there was a net gain of 9.2 million subscribers, bringing the total to 448.5 million.

    • JFSL: Rs 155bn of Cash and Liquid Investments transferred from RIL, taking the liquid assets of JFSL to Rs 207bn.

    • Reliance Jio reported a strong set of numbers; with an annual increase of 6.7% in ARPU, which currently stands at Rs.178.8. The total customer base also grew by 7.09% YoY to 43.93 crore.

    Financial Performance:

    Shareholding Pattern:

    Particulars (In%) Q1FY23 Q1FY24
    Promoters Group 49.11 49.11
    FIIs 26.67 22.52
    DIIs 14.24 15.82
    Public 9.19 11.89
    Others 0.79 0.66

    Management Commentary:

    Commenting on the June quarter results, Mukesh D Ambani, CEO and MD 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 its subscriber base, which reflects in the financial performance of the digital services business. Accelerated roll-out of Jio’s True 5G services is propelling the nation’s digital transformation at an unprecedented pace. Retail business delivered robust growth, with fast-paced store additions and steady growth in footfalls. O2C business delivered a resilient performance despite continuing global macro headwinds.”


    Reliance reported YoY flat EBITDA and ~11% YoY decline in net earnings in Q1FY24, mainly due to the lagging of O2C segment, however the previous several years have seen strong expansion for Reliance Retail. Its footprint and number of stores have grown by 2.3x/53% over FY20-23E, even during Covid. The two digital verticals, AJio and Jiomart, are gaining significant pace; their combined sales share increased from 17% to 18% in the previous quarter, generating an INR 81 billion quarterly run-rate. Considering the growth momentum in Retail, RIL has accelerated a step towards the de-merger. Any announcement regards to potential listing of consumer business would be a key trigger for the RIL.



    Particulars (In Rs. Cr.) Q1FY24 Q4FY23 Q1FY23 QoQ% YoY%
    Revenue from Operations 2,10,831 2,16,265 2,22,664 -2.5% -5.3%
    Other Income 3,813 2,875 2,237 32.6% 70.5%
    Total Income 2,14,644 2,19,140 2,24,901 -2.1% -4.6%
    Cost of materials consumed 95,809 1,04,031 1,30,528 -7.9% -26.6%
    Purchase of Stock-in-Trade 38,372 37,777 37,043 1.6% 3.6%
    Changes in inventories -2,513 -4,706 -20,890 -46.6% -88.0%
    Employee expense 6,601 6,464 5,999 2.1% 10.0%
    Excise Duty 3,272 3,431 3,809 -4.6% -14.1%
    Other Expenses 31,197 30,912 28,418 0.9% 9.8%
    EBITDA 38,093 38,356 37,757 -0.7% 0.9%
    EBITDA Margin (%) 18.1% 17.7% 17.0% 40 bps 110 bps
    Finance Cost 5,837 5,819 3,997 0.3% 46.0%
    Depreciation & Amortisation expense 11,775 11,452 8,942 2.8% 31.7%
    Profit Before Tax (PBT) 24,294 23,960 27,055 1.4% -10.2%
    Tax 6,112 2,754 7,591 121.9% -19.5%
    Exceptional Items-incomes/expenditure 76 21 -59 261.9% -228.8%
    Profit After Tax (PAT) 18,258 21,227 19,405 -14.0% -5.9%
    PAT Margin (%) 8.7% 9.8% 8.7% -110 bps 0 bps
    EPS (in Rs.) 23.66 28.52 26.54 -17.0% -10.9%
    Segment Revenue (In Rs. Cr.) Q1FY24 Revenue % Q4FY24 QoQ% Q1FY23 YoY%
    Oil to Chemicals (O2C) 1,33,031 51.7% 1,28,634 3.42% 1,61,715 -17.74%
    Oil and Gas 4,632 1.8% 4,556 1.67% 3,625 27.78%
    Retail 69,962 27.2% 69,275 0.99% 58,560 19.47%
    Digital Services 32,077 12.5% 31,375 2.24% 28,512 12.50%
    Others 17,827 6.9% 33,040 -46.04% 15,190 17.36%
    Total 2,57,529 100.0% 2,66,880 -3.50% 2,67,602 -3.76%
    Source: Company website, EWL Research

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