New Delhi, July 21 (FN Agency) Dragged down by oil-to-chemicals (O2C) business, Mukesh Ambani-led Reliance Industries Ltd (RIL) on Friday reported 10.82% year-on-year decline in its consolidated net profit at Rs 16,011 crore for April-June quarter (Q1) of financial year 2023-24. The oil-to-retail-to-telecom business conglomerate had posted a net profit of Rs 17,955 crore in the Q1 of previous financial year. The company’s gross revenue from operations during the first quarter of the current financial year stood at Rs 2,31,132 crore, down 4.61% as compared to Rs 2,42,529 crore in the same period a year ago. A media statement from the company said that its O2C segment revenue in the Q1 of FY24 fell 17.7% year-on-year to Rs 1,33,031 crore ($ 16.2 billion) primarily on account of sharp reduction in crude oil prices and lower price realisation of downstream products. The company noted that the O2C segment delivered a resilient performance despite short-term macro challenges. It said that demand was impacted by destocking on recessionary fears and high interest rates, as well as slower than expected ramp-up in China markets.
It stated that year-on-year comparisons are skewed due to historic high fuel cracks in Q1 of FY23, with dislocation in energy markets. Commenting on the quarterly results, RIL Chairman and Managing Director Mukesh Ambani 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.” He further said that Jio’s wide range of quality offerings at affordable price points has enabled strong growth in subscriber base, which reflects in the financial performance of the digital services business. Reliance has announced that Jio will complete pan India 5G coverage before December 2023. “Retail business delivered robust growth, with fast-paced store additions and steady growth in footfalls. The contribution of digital and new commerce initiatives is scaling up, delivering value to consumers and providing synergistic benefits to merchant partners,” said Mukesh Ambani in a statement. He noted that O2C business delivered a resilient performance despite continuing global macro headwinds.
The corporate giant’s retail business delivered a robust revenue of Rs 69,948 crore in Q1, up by 19.5% year-on-year led by growth in grocery, consumer electronics (excluding devices) and fashion & lifestyle. “The sustained growth across consumption baskets has further consolidated our position as a market leader. We continue to innovate and invest in our stores and digital platforms to make shopping more engaging for our customers,” said Isha Ambani, Executive Director, Reliance Retail Ventures. The company’s oil and gas (exploration and production) segment revenue was higher by 27.8% year-on-year in Q1 at Rs 4,632 crore. Media business during this period recorded impressive growth with gross revenue rising 143% year-on-year to Rs 3,790 crore in Q1. Earlier in the day, Reliance Jio Infocomm Ltd (RJIL) on Friday reported 12% year-on-year increase in net profit at Rs 4,863 crore for April-June period of the current financial year.