In This Article:
Release Date: October 14, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Digital services revenue and EBITDA increased by 18%, driven by broader scaling and tariff hikes.
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Retail business showed a 5.2% increase in profit after tax, with a focus on enhancing customer propositions.
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Oil and gas segment reported an 11% growth in EBITDA, supported by increased production in KGD6 and CBM.
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Reliance Jio's 5G services saw strong uptake, with 148 million subscribers transitioning to 5G.
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The company is scaling up digital commerce and hyperlocal deliveries, leveraging its extensive store network.
Negative Points
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Overall EBITDA decreased by 2%, impacted by weak performance in the O2C segment.
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Profit after tax declined by 2.8%, affected by higher interest and depreciation charges.
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O2C segment faced a 24% drop in EBITDA due to unfavorable demand and supply fundamentals.
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Retail revenue declined by 1.1% year-on-year, impacted by weak market demand in fashion and lifestyle.
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Subscriber base for Reliance Jio decreased by 10.9 million due to SIM consolidation and recharge delays.
Q & A Highlights
Q: Can you provide an overview of Reliance Industries' financial performance for the quarter? A: Srikanth Venkatachari, Chief Financial Officer, reported consolidated revenues of INR2,58,027 crore, up 0.8%, with EBITDA close to INR44,000 crore, down 2%, and PAT at INR19,323 crore, down 2.8%. The digital services and upstream sectors showed robust growth, while the O2C segment faced challenges due to unfavorable demand and supply fundamentals.
Q: How did the retail segment perform this quarter? A: Dinesh Taluja, CFO & Corporate Development, Reliance Retail, stated that retail revenue was INR76,302 crore, with a steady EBITDA margin increase to 8.8%. The segment faced weak market demand, particularly in fashion and lifestyle, but saw growth in digital commerce and new store openings.
Q: What advancements have been made in the digital services sector? A: Kiran Thomas, President, Reliance Jio Infocomm Limited, highlighted the expansion of Jio's 5G services, with 148 million subscribers migrating to True 5G. Innovations include True 5G voice calling and advanced interference mitigation, contributing to an 18% increase in revenue and EBITDA.
Q: Could you elaborate on the performance of the oil and gas segment? A: Sanjoy Roy, President, E&P, reported the highest quarterly EBITDA of INR5,290 crore, driven by steady production from KGD6 and increased CBM production. Despite lower year-on-year price realizations, the segment benefited from strong demand and higher LNG prices.