Reliance Industries Ltd (RIL), led by Mukesh Ambani, announced its financial results for the fourth quarter of the fiscal year. The company reported a small drop of 1.80 percent in its combined net profit, which stood at Rs 18,951 crore compared to Rs 19,299 crore in the same quarter last year. However, the results were better than what analysts had expected, which was a 5-10 percent decrease in profit.
On the revenue side, RIL saw combined revenue from operations reaching Rs 2,40,715 crore, up from Rs 2,16,265 crore in the same quarter last year.
The company’s Ebitda (Earnings Before Interest, Taxes, Depreciation, and Amortization) also showed a strong 14.3 percent YoY increase, rising to Rs 47,150 crore from Rs 44,678 crore in the previous year. The Ebitda margin stood at 17.8 percent, an improvement of 50 basis points over the 17.3 percent recorded in the year-ago quarter.
RIL’s net debt position improved during the quarter, declining to Rs 1,16,281 crore from Rs 1,19,372 crore in the December quarter and Rs 1,25,766 crore in the March quarter of the previous year.
In a positive move for shareholders, the RIL board declared a dividend of Rs 10 per share for the financial year 2023-24. The company stated that it would inform investors about the date of the Annual General Meeting and the dividend payment date later.
RIL credited the strong Ebitda performance to the robust contribution from its key businesses. The Jio Platforms Ltd (JPL) Ebitda increased by 12.5 percent YoY, driven by higher revenue from steady additions of subscribers. The Ebitda for Reliance Retail Ventures Ltd (RRVL) rose by 18.5 percent, helped by better business operations and a 60 basis point margin expansion to 8.6 percent.
Despite a tough margin environment, the company’s Oil to Chemicals (O2C) Ebitda remained steady. Lower transportation fuel profits were offset by reduced impact from the Special Additional Excise Duty (SAED). Additionally, the Oil and Gas segment Ebitda surged by 47.5 percent, fueled by a 66.4 percent increase in gas and condensate production from the KG D6 block.
