Reliance Industries consolidated profit drops Q1FY25 5% to Rs 15,138 cr

The consolidated EBITDA (earnings before interest, taxes, depreciation, and amortization) increased by 2 percent year-on-year to Rs 42,748 crore.

RIL’s consolidated net profit dropped 5% to Rs 15,138 crore for the first quarter ended June 2024. The same stood at Rs 16,011 crore in the year-ago period, according to Economic Times.

The EBITDA for RIL's oil and gas business soared by 30 percent owing to higher production volumes. Operating profits for Jio Platforms Ltd and Reliance Retail Ltd increased by 11.6 percent and 10.5 percent, respectively.

Conversely, the oil-to-chemicals (O2C) segment saw a 14.3 percent year-on-year decline in EBITDA to Rs 13,093 crore, attributed to reduced transportation fuel cracks and lower downstream chemical margins.

This decline was partially offset by lower feedstock costs and strong domestic demand. Sequentially, O2C EBITDA dropped 22 percent due to weaker fuel cracks amid low demand and increased supply, though this was somewhat cushioned by better downstream chemical margins.

Despite the energy market volatility impacting short-term earnings, the underlying business conditions remained positive. Factors such as geopolitical issues, weather conditions, operational disruptions, and new refining capacities also contributed to the market volatility.

Jio Platforms Ltd’s EBITDA rose to Rs 14,638 crore, with its subscriber base growing to 489.7 million, including a net addition of 8 million users during the June quarter. The company also reported having 130 million 5G users.

The EBITDA of the oil and gas business rose to Rs 5,210 crore, with an EBITDA margin of 84.3%. A 44 percent increase in gas production from the KG D6 field helped mitigate the impact of lower price realizations. The average production at KG D6 was reported at 28.7 MMSCMD of gas and approximately 21,640 barrels per day of condensate.

EBITDA for RIL’s retail business rose to Rs 5,664 crore, with store area exceeding 80 million sq ft.

RIL’s capital expenditure for the quarter was Rs 28,785 crore, comfortably covered by a cash profit of Rs 33,757 crore. Net debt as of June 30 decreased to Rs 1.12 lakh crore, down from Rs 1.16 lakh crore as of March 31, 2024.