RELIANCE INDUSTRIES Q1 RESULTS 2025: TOPLINE INCREASES, BOTTOM LINE FALLS

Reliance Industries reported its Q1FY25 numbers on Friday evening, 19th July. Earlier, the stock closed 1.84% lower at Rs 3,110.30 on the NSE. Let us look at Reliance's quarterly numbers in detail.

About Reliance Industries

Reliance Industries is an Indian conglomerate founded by Dhirubhai Ambani in 1966. It operates in various sectors, including petrochemicals, refining, oil and gas exploration, retail, and telecommunications. It was one of the largest companies in India.

Crucial parameters

• PE: 49.93
• 52-week high: Rs 3,217.90
• Market Cap: Rs 21,03,829.74 crore
• ROE: 8.18

Share price movement

In the last month, Reliance's share price has increased by nearly 6%. In 6 months, the shares have given an exceptional return of 17.37% to its investors. In one year, the Reliance share has increased by 25.26%. In the last five years, Reliance shares have given investors more than 150% returns, better than the benchmark indices.

How has Reliance performed in Q1FY25?

Let us look at Reliance's June'24 quarter numbers in detail:

Revenue: The consolidated revenue reported by the company for the quarter ended June was Rs 2,57,823 crore. The revenue reported was up 11.5% YoY and down 2.6% sequentially. The YoY revenue growth was led by growth in all key segments.

EBITDA: The company reported an EBITDA of Rs 42,748 crore for Q1FY25 compared to Rs 47,150 crore in Q4FY24 (9.1% lower sequentially) and Rs 41,910 crore in the year-ago period (2% growth YoY). Upstream and consumer businesses supported EBITDA growth. O2C performance was muted in a tough operating environment.

Net Profit: Reliance Industries reported a net profit of Rs 17,445 crore, down 17.9% sequentially and 4.5% YoY. QoQ decline in PAT largely due to a 22% decline in O2C EBITDA.

How have different segments performed under Reliance in Q1FY25?

Reliance Industries has recorded robust numbers for the June quarter, with profit and operating numbers boosted by retail, digital (Jio), and oil & gas businesses. Let us look at the performance of each sector in detail:

Retail: The retail segment reported a revenue of Rs 75,615 crore, a growth of 8.1% YoY. EBITDA was Rs 5,664 crore, a growth of 10.5% YoY. The profit after tax (PAT) reported was Rs 2,549 crore, a 4.6% growth YoY. Opened 331 new stores with a gross area addition of 3.1 mn sq. ft. in Q1FY25;. The total store count of 18,918. Enhancing technology platform, supply chain, and distribution capabilities to sustain growth momentum in the near and medium term.

Digital Servies: The segment includes the Telecom business. Jio reported an operating revenue of Rs 34,548 crore, a growth of 12.8% YoY. EBITDA was 14,638 crore, a growth of 11.6% YoY. ARPU for the June quarter reported was Rs 181.7, the same as last quarter and a 0.7% increase over last year.

The subscriber base at the end of the June quarter was 48.97 crore, a net addition of 80 lakh in the June quarter. Jio has become the fastest operator to cross 1 million connections on Fixed Wireless with strong demand for JioAirFiber.

JioBharat which is accelerating the transition towards ‘2G Mukt Bharat’ and JioPhone users will continue to enjoy services with no change in tariff.

O2C: The revenue was up by 18.1% compared to the year-ago period and stood at Rs 1,57,133 crore. The EBITDA was down significantly - 14.3% YoY. EBITDA was lower by 14% due to a sharp decline in product margins

✓Gasoline (-30%), PE (-17%), PP (-16%)

✓Polyester chain deltas down 15%

Energy market volatility impacting short-term earnings and structural business dynamics remains constructive.

Challenges for O2C segment:

• Geopolitical tensions in ME and Russia/Ukraine and disruptions to Red Sea transit keep the crude oil market volatile
• Increased supply owing to new refining and downstream capacities and from capacities returning post-maintenance

Oil & Gas: The oil & Gas segment reported a revenue of Rs 6,179 crore, up 33.4% YoY and down 4.5% sequentially. The EBITDA was up 29.8% YoY and stood at Rs 5,210 crore. India gas demand growth resilient to elevated global prices LNG imports increased 30% in Q1FY25

• Increasing CGD demand and higher gas-based power generation (owing to heatwaves in India)

The ceiling price applicable for KGD6 was revised marginally downward to ~$9.87/MMBtu for H1FY25.