MUMBAI: Reliance Industries has reported a substantial 30% increase in its consolidated net profit for the September quarter, reaching a total of Rs 19,878 crore compared to Rs 15,332 crore in the same period last year. The company, a prominent player in the fields of energy, retail, and digital services, experienced a boost in its oil & gas revenues and witnessed significant growth in its retail and digital services divisions.
Reliance Industries’ consolidated revenue for Q2 amounted to nearly Rs 2.6 lakh crore, marking a 1.2% increase from the previous year’s figure of Rs 2.5 lakh crore. Market experts have noted that these results were in line with expectations.
Mukesh Ambani, the Chairman and Managing Director of Reliance Industries, expressed his contentment, stating, “Strong operational and financial contributions from all business segments have enabled Reliance to deliver another quarter of robust growth.”
In Q2, Reliance Retail achieved a gross revenue of Rs 77,148 crore, representing a nearly 19% increase, driven by the continued strong performance of its grocery and fashion & lifestyle businesses. The net profit for the quarter stood at Rs 2,790 crore, reflecting a 21% increase.
During this quarter, Reliance Retail expanded its reach by opening 471 new stores, bringing the total count to 18,650 stores by the end of the period.
Jio Platforms, the digital arm of the Reliance group, reported a record-high gross revenue of Rs 31,537 crore in the quarter, marking a growth of almost 11%. The net profit for the quarter also saw a 12% increase, reaching Rs 5,297 crore. Jio added approximately 1.1 crore subscribers in Q2, resulting in a total customer base of nearly 46 crore as of September 30.
In contrast, revenue from the oil-to-chemicals segment experienced a 7.3% decline in the quarter, totaling nearly Rs 1.5 lakh crore. This drop was primarily attributed to a sharp 14% reduction in crude oil prices, resulting in lower price realization for products, according to RIL.
In a strong market on Friday, RIL’s stock rallied 1.8% to close at Rs 2,265, making it the largest contributor to the Sensex’s 635-point gain for the day, according to BSE data.
Reliance Retail recorded footfalls of over 260 million across its formats, marking a 40.5% increase compared to the previous year.
The company also reported a reduction in outstanding debt, which decreased to Rs 2.95 lakh crore from Rs 3.18 lakh crore at the end of June. Reliance Industries continued its accelerated investments in the pan-India 5G rollout, with a capital expenditure of Rs 38,815 crore for the quarter.
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Mukesh Ambani’s three children have received shareholder approval for positions on the board of RIL, signaling the initiation of a succession plan at India’s most valuable company.
Akash and Isha, both 32 years old, garnered over 98% of the votes in favor of their board seats, while Anant, aged 28, who faced opposition from proxy advisory firms due to his youth, managed to secure 92.7% of the votes, as reported in an exchange filing.
International proxy advisory firm, Institutional Shareholder Services, had recommended that shareholders vote against the proposal to appoint Anant Ambani to the board of the family-controlled Reliance, citing his limited experience. Similarly, Mumbai-based Institutional Investor Advisory Services (IIAS) noted that appointing the young Ambani scion at the age of 28 did not align with their voting guidelines.
These appointments are part of the succession planning initiated by Mukesh Ambani, who himself joined the board at the age of 20.