Reliance Industries Reports 27% Surge in Q2 Net Profit, Driven by Oil-To-Chemicals Business By

Reliance Industries Reports 27% Surge in Q2 Net Profit, Driven by Oil-To-Chemicals Business By

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Reliance Industries Ltd (RIL), led by Mukesh Ambani, has announced a 27% surge in its consolidated net profit for the second quarter of fiscal year 2024 (Q2FY24), reaching Rs 17,394 crore. This growth was primarily driven by the company’s oil-to-chemicals (O2C) business segment.

Despite a decline in refined fuel prices leading to lower margins, RIL experienced a 1% increase in consolidated revenue, reaching Rs 2.34 lakh crore. The company’s stock also closed 1.8% higher at Rs 2,266.15 on BSE Today.

The O2C segment’s strong performance was attributed to robust fuel demand in a supply-constrained market and the growth of the oil and gas business due to increased production at the KGD6 block. However, the company noted that weak global demand and supply overhang impacted downstream contributions.

RIL’s EBITDA for the quarter stood at Rs 44,867 crore, marking a 30% annual increase. The company also managed to reduce its net debt to Rs 2.95 lakh crore and maintained cash and cash equivalents worth Rs 1.77 lakh crore as of the end of Q2FY24. This includes a capital raise of Rs 10,347 crore in Reliance Retail. The company’s capital expenditure for the quarter amounted to Rs 38,815 crore, with a focus on pan-India 5G roll-out.

In other aspects of its business, Reliance Jio Infocomm reported a net profit of Rs 5,058 crore, up by 4% sequentially due to higher expenses and no tariff hikes. Its revenue rose by 3% to Rs 24,750 crore with an average revenue per user (ARPU) of Rs 181.7. Akash Ambani, a key figure in the company, announced the imminent pan-India availability of Jio True5G.

Reliance Retail, another significant arm of RIL, saw a net profit rise of 21% to Rs 2,790 crore and operations revenue growth of 19.5% to Rs 68,937 crore in Q2FY24. Isha Ambani emphasized the company’s customer-centric approach during this period.

The quarter also witnessed an increase in Gas and oil production and the commencement of Condensate production from the MJ field, further contributing to RIL’s overall performance.

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