In a recent financial exposition, Reliance Industries Ltd (RIL) disclosed a static growth trajectory in net profits for the concluding quarter of the fiscal year 2024. The company’s net profit exhibited a meager increment of 0.1 percent, standing at Rs 21,243 crore in comparison to Rs 21,227 crore recorded in the corresponding quarter of the preceding year. A stark increase in tax expenditures, amplified by 138.8 percent year-on-year to Rs 6,577 crore, was pinpointed as the primary factor hampering substantial growth. The previous year’s quarter benefitted from tax credits, which contrasted starkly with the current fiscal period’s taxation scenario.
While net profit saw stagnancy, Reliance Industries’ gross revenue reported a notable increase of 10.8 percent, soaring to Rs 264,834 crore during the March quarter from Rs 238,957 crore in the same span of the previous year. The overall consolidated revenue for the fiscal year flaunted a triumphant breach of the Rs 10 lakh crore mark, scaling up from Rs 9.74 lakh crore in FY23. The company’s pre-tax profits achieved an unprecedented milestone, crossing the Rs 100,000-crore threshold and marking a first for any Indian corporate entity.
Amid the financial disclosures, the RIL board proclaimed a dividend of Rs 10 per share for FY24, underlining their continued focus on shareholder returns despite fluctuating market conditions.
RIL’s burgeoning digital arm, Jio Platforms Ltd, infused a dose of optimism with a 12 percent surge in net profit, which clocked in at Rs 5,583 crore for the fourth quarter, a leap from Rs 4,984 crore the previous year. Revenue growth kept pace, registering a 13.3 percent intensification to Rs 33,835 crore. The thrust behind Jio’s robust performance is attributed to the expansion of its subscriber base, nourished by mobility and fixed wireless services’ burgeoning demand.
Reliance Retail mirrored this prosperity, with an 11.7 percent elevation in net profit, marking Rs 2,698 crore for the quarter as opposed to Rs 2,415 crore a year earlier. Revenue growth in this sector did not lag, witnessing a 10.6 percent enhancement to a robust Rs 76,627 crore from Rs 69,267 crore.
Mukesh D. Ambani, RIL’s Chairman and Managing Director, extolled the comprehensive efforts displayed across the conglomerate’s diverse business arenas. He emphasized the core contribution of these initiatives to the burgeoning sectors of the Indian economy and lauded the company’s robust financial and operational execution that paved the way to achieving these significant milestones.
For the digital services division specifically, Ambani highlighted that the performance surge was bolstered by an accelerated subscriber base expansion, which was made possible by a duo of mobility and fixed wireless services.
The oil-to-chemicals (O2C) segment reaped the benefits of strong global fuel demands coupled with limited refining system flexibility, which jointly endorsed the segment’s margins and profitability. However, Ambani also flagged that the downstream chemical industry faced increasingly challenging market circumstances throughout the year.
Addressing the dominating success of RIL’s energy ventures, Ambani indicated that the KG-D6 block has pronounced a 30 MMSCMD production volume, establishing itself as a considerable contributor to India’s domestic gas production, accounting for 30 percent of the total.
The leadership within the various RIL segments reflected resonating optimism. Akash M Ambani, steering the ship at Reliance Jio Infocomm, predicted unwavering industry-leading growth sustained by the advancement of JioAirFiber subscriber bases and the company’s digital service expansion.
Isha M. Ambani, helming Reliance Retail, pledged continuous innovation and investments to enhance the consumer value proposition and resonate with ever-evolving customer desires. She equated the robust expansion of their retail operations to the company’s alliance with India’s buoyant consumption narrative.
