Reliance Industries becomes first Indian company to cross INR 1 lakh crore threshold in pre-tax profits

NEW DELHI — Reliance Industries Limited (RIL) has reported gross revenues of INR 10 lakh crore ($119.9 billion) for the year ended March 2024, up 2.6 per cent year-on-year supported by continued growth momentum in consumer businesses and upstream business.

Revenue for Jio Platforms increased by 11.7 per cent Y-o-Y, led by robust subscriber growth of 42.4 million across mobility and homes and benefit of mix improvement in ARPU.

Revenue for Reliance Retail grew by 17.8 per cent Y-o-Y with strong growth across all consumption baskets, gross area addition of 15.6 million sq. ft.and record footfalls of over one billion.

O2C revenue of the company decreased by 5 per cent primarily on account of lower product price realisation following a 13.5 per cent Y-o-Y decline in average Brent crude oil prices.

This was partially offset by higher volumes, RIL said in a statement.

Revenue from Oil & Gas segment increased significantly by 48 per cent mainly on account of higher volumes from KG D6 block, despite lower gas price realisation from KG D6 field.

Commenting on the results, Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries Limited said: “Initiatives across RIL’s businesses have made a remarkable contribution towards fostering growth of various sectors of the Indian economy. It is heartening to note that alongside strengthening the national economy, all segments have posted a robust financial and operating performance.

“This has helped the Company achieve multiple milestones. I am happy to share that this year, Reliance became the first Indian company to cross the INR 100,000-crore threshold in pre-tax profits.”

Ambani said performance of the digital services segment has been boosted by accelerated expansion of subscriber base, supported by both mobility and fixed wireless services.

“With over 108 million True 5G customers, Jio truly leads the 5G transformation in India. From upgrading the hitherto 2G users to smartphones, to leading the effort of producing AI-driven solutions, Jio has proved its capability in strengthening the nation’s digital infrastructure,” Ambani said.

Reliance Retail continued to provide customers endless choices through its robust omni-channel presence, Ambani said.

“We continue to offer product differentiation and superior offline experience through stores re-modelling and revamping of layouts. Our digital commerce platforms also provide newer solutions to users with a broad brand catalogue. Reliance Retail also works towards strengthening millions of merchants through its unique initiatives in new commerce space,” Ambani said.

Ambani said strong demand for fuels globally, and limited flexibility in refining system worldwide, supported margins and profitability of the O2C segment. Downstream chemical industry experienced increasingly challenging market conditions through the year.

“Despite headwinds, maintaining leading product positions and feedstock flexibility through our operating model that prioritises cost management, we delivered a resilient performance. The KG-D6 block has achieved 30 MMSCMD of production and now accounts for 30 per cent of India’s domestic gas production,” Ambani said.

“We remain committed to our projects and initiatives, including those in the New Energy segment, which will bolster the company, and help it deliver sustainable growth for the future,” Ambani said.

On the quarterly performance of RIL, gross revenue was INR 2.64 lakh crore ($ 31.8 billion), up 10.8 per cent Y-o-Y, supported by double-digit growth in O2C and consumer business.

Oil & gas segment revenues increased sharply by 42 per cent with higher volumes from KG D6 block.

EBITDA increased by 14.3 per cent Y-o-Y to INR 47,150 crore ($5.7 billion) with strong contribution from all businesses.