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Published: October 27, 2023
Updated: October 27, 2023

Reliance Industries Soars to New Heights in Q2FY24: A Comprehensive Analysis

Jio Platforms: Driving Digital Transformation

In Q2FY24, Jio Platforms continued to be a shining star within Reliance Industries, contributing significantly to the company's growth. The segment witnessed a remarkable 10.7% YoY increase in consolidated revenue, reaching ₹26,875 crore. Net profit surged by 12% YoY, amounting to ₹5,297 crore. EBITDA demonstrated a substantial growth of 12.6% YoY, totaling ₹13,528 crore, with an impressive EBITDA margin of 50.3%. Notably, Jio added an industry-leading 1.11 crore subscribers during the quarter.

Reliance Retail Ventures: Unstoppable Expansion

Reliance Retail Ventures continued its relentless expansion, registering a substantial 19.5% YoY growth in revenue, which stood at ₹68,937 crore in Q2FY24. Net profit soared by 21% YoY to ₹2,790 crore. EBITDA witnessed remarkable growth of 32.2% YoY, reaching ₹5,820 crore, and the EBITDA margin increased by 80 bps YoY to 8.4%. During the quarter, Reliance Retail added 471 new stores, further solidifying its presence in the retail landscape.

Oil-to-Chemicals (O2C) Segment: Weathering Market Volatility

The O2C segment demonstrated resilience despite a 7.3% YoY decline in revenue to ₹1,47,988 crore, primarily due to reduced crude oil prices. EBITDA, however, surged by an impressive 36% YoY to ₹16,281 crore, with an improved EBITDA margin of 11%. The segment's performance was driven by robust growth in fuel demand in a supply-constrained market.

Oil and Gas: Paving the Way for India's Energy Transition

The oil and gas segment displayed substantial growth, with a 71.8% YoY increase in revenue, totaling ₹6,620 crore. EBITDA increased by 50.3% YoY to ₹4,766 crore. However, the EBITDA margin experienced a slight decline, dropping to 72%. Despite margin compression due to higher costs associated with commissioning and ramp-up activities, the oil and gas business played a pivotal role in supporting India's energy transition.

Media Business: Strengthening the Sporting Portfolio

The media business segment reported a robust 20.4% YoY growth in revenue, amounting to ₹1,865 crore. However, the segment incurred a loss of ₹111 crore during the quarter, primarily due to investments in growth verticals, including sports and digital. Notably, Viacom18, a subsidiary, continued to bolster its sports portfolio by acquiring exclusive media rights for various sporting events, making it a prominent destination for sports enthusiasts.

Reliance Industries' Resilient Journey

Reliance Industries' Q2FY24 earnings exemplify the company's unwavering commitment to growth and innovation. With stellar performances in digital services, retail, and a diverse portfolio, Reliance continues to be a formidable player in India's corporate landscape. Despite market challenges, the company stands resilient, positioning itself for a dynamic future.