RIL Q2 FY25 results: Profit drops 5% to Rs 16,563 crore; total income sees slight increase

Reliance Industries Ltd (RIL) reported a 4.78% decline in its consolidated net profit for the second quarter of the financial year 2024-25 (Q2 FY25). The company's net profit dropped to Rs 16,563 crore from Rs 17,394 crore in the same period last year.

Despite the drop in profit, RIL's total income saw a modest rise of 0.65%, reaching Rs 2,40,357 crore, up from Rs 2,38,797 crore in the corresponding quarter of the previous year.

The Mukesh Ambani-led firm announced that its gross revenue remained stable year-on-year at Rs 2,58,027 crore ($30.8 billion).

Performance Breakdown:

Mukesh Ambani commented on the results, saying, "Reliance once again demonstrated the resilience of its diversified business portfolio. Our performance reflects robust growth in Digital Services and the Upstream business, which helped partially offset weak contributions from the O2C business, affected by unfavorable global demand-supply dynamics."

RIL's statement highlighted that an unfavorable demand-supply balance led to a sharp 50% decline in transportation fuel cracks and continued weakness in downstream chemical deltas.

Revenue Insights:

Oil-to-Chemicals (O2C): Revenue improved due to higher volumes and increased domestic product placement. However, product margins saw a sharp decline.

Digital Services: Revenue increased due to revised telecom tariffs for mobility services and the scale-up of homes and digital services businesses.

Oil and Gas: Revenue decreased by 6% due to lower gas price realizations.

EBITDA:

RIL's EBITDA (earnings before interest, taxes, depreciation, and amortisation) fell by 2% year-on-year to Rs 43,934 crore ($5.2 billion).

Jio Platforms Ltd: EBITDA increased by 17.8% YoY due to a better subscriber mix, digital services scale-up, and revised telecom tariffs.

Reliance Retail Ventures Ltd: EBITDA margin improved by 30 basis points due to operational streamlining and a calibrated approach in B2B.

O2C Segment: EBITDA declined by 23.7%, with product margins falling significantly and fuel cracks declining by nearly 50% YoY. Downstream chemicals also saw a decline due to muted global demand in a well-supplied market. However, RIL benefited from superior ethane cracking economics.

Oil and Gas Segment: EBITDA rose by 11% due to sustained volume growth and a one-time provision towards decommissioning cost for Tapti field in Q2 FY24.

Depreciation and finance costs increased by 2.3% and 5% YoY, respectively.

Capital Expenditure:

RIL's capital expenditure for the quarter ended September 30, 2024, stood at Rs 34,022 crore ($4.1 billion).

Jio Platforms:

Subscriber Base: Jio's total subscriber base grew by 4.2% YoY to 47.9 crore.

ARPU: Average revenue per unit (ARPU) increased by 7.4% YoY to Rs 195.1.

5G Leadership: The telecom operator strengthened its leadership in 5G with 14.8 crore subscribers transitioning to the new network. Per capita data consumption rose to 31 GB per month due to a higher mix of 5G and home users.

Jio Platforms reported a 23.4% increase in its Q2 FY25 profit, while Reliance Retail Ventures' profit after tax (PAT) fell by 1.3%.

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