Reliance Industries Reports 4.7% Drop in Q2 Profit

15 Oct 2024 , 04:41 PM

Reliance Industries Ltd (RIL) reported a net profit of ₹16,563 Crore for Q2 FY25, marking a 4.7% year-on-year decline. Gross revenue remained stable at ₹2.32 lakh Crore for the same quarter.

Market expert Prakash Diwan suggested that positive growth in new energy business and improved ARPU in the O2C segment could drive stock prices back to the ₹3,200-₹3,300 range.

Reliance Jio’s net profit surged 23.2% year-on-year, reaching ₹6,231 Crore, while revenue increased by 14.5%, rising to ₹28,338 Crore.

Jio’s EBITDA grew 16.1% to ₹15,036 Crore, with EBITDA margins improving to 53.1%, reflecting strong operational performance. Jio reported a 7.4% year-on-year rise in ARPU, reaching ₹195.10, driven by enhanced customer engagement and JioAirFiber services. Jio’s 5G subscriber base reached 148 million, making it the largest 5G operator outside China.

Reliance Retail Ventures Ltd (RRVL) posted a modest 1.3% rise in net profit at ₹2,836 Crore, but revenue declined by 3.5% to ₹66,502 Crore due to weak demand in the fashion segment. RRVL’s EBITDA increased slightly by 0.3%, reaching ₹5,850 Crore, with margins improving to 8.5%.

Reliance Industries’ Oil & Gas division saw an 11% rise in EBITDA, hitting ₹5,290 Crore, with margins improving to 85%. Despite challenges in the Oil to Chemicals (O2C) business, strong growth in digital services and upstream operations helped stabilize overall performance.