Reliance Industries has released its Q2 FY25 financial results, reporting a consolidated net profit of ₹16,563 crore. This figure represents a 4.8% decrease from ₹17,394 crore in the same quarter last year. Despite this decline, the profit exceeded market expectations. The decrease in net profit was largely driven by a 23.7% drop in EBITDA from the oil-to-chemicals (O2C) segment, which faced challenges due to weak product margins.
Key Highlights:
- Revenue Growth: Reliance’s gross revenue increased by 0.8% year-on-year, reaching ₹258,027 crore, compared to ₹255,996 crore in Q2 FY24.
- Segment Performance:
- The retail segment showed slight improvement.
- Jio Platforms, the telecom arm, reported a significant 17.8% increase in EBITDA, fueled by a better subscriber mix and revised tariffs.
- The oil and gas sector saw a 6% decline in revenue, primarily due to lower gas price realizations.
- EBITDA and Margins: The overall EBITDA for the quarter was ₹43,934 crore, reflecting a 2% decline year-on-year. EBITDA margins contracted to 17%, down from 17.5% in the same quarter last year.
- Debt Position: Reliance managed to reduce its net debt year-on-year to ₹116,438 crore, although this is an increase from ₹112,341 crore in the previous quarter.
- Future Prospects: Chairman Mukesh D. Ambani emphasized the resilience of Reliance’s diversified business portfolio, noting strong growth in digital services and upstream businesses, which helped mitigate the impact of the O2C segment’s performance. He also announced that the first of their New Energy Giga factories is on track to begin producing solar PV modules by the end of the year, aiming to position the New Energy business as a key player in the global clean energy transition.
As of the latest update, Reliance’s share price was ₹2,745.20, with a market capitalization of approximately ₹18.57 lakh crore.
Disclaimer: This report is for informational purposes only and should not be considered as financial advice. The financial results and performance metrics of Reliance Industries mentioned herein are based on publicly available information and may be subject to change. Readers are encouraged to conduct their own research and consult with a qualified financial advisor before making any investment decisions. Reliance Industries does not endorse or guarantee the accuracy, completeness, or reliability of the information presented in this report.
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