RIL Q4 results: Profit falls 1.8% to Rs 18,951 cr, Rs 10 dividend announced

Missing analysts’ estimate, Mukesh Ambani-promoted Reliance Industries Limited (RIL) on Monday reported a 1.8 per cent year-on-year (Y-o-Y) decline in its consolidated net profit (attributable to the owners of the company) for the quarter ended March 2024 (Q4FY24) because of higher tax expenses. At Rs 18,951 crore, the net profit, however, was nearly 10 per cent higher sequentially.

The energy-to-entertainment conglomerate’s revenue in Q4 increased by 11.1 per cent from a year ago to Rs 2.37 trillion, which was up 5.1 per cent quarter-on-quarter. The reported profit after tax in the March quarter at Rs 21,243 crore was almost flat Y-o-Y. The company’s other income grew 57.7 per cent from a year ago to Rs 4,535 crore in Q4, while tax expenses jumped 139 per cent Y-o-Y to Rs 6,577 crore.

Though the bottomline missed Bloomberg’s consensus estimate of Rs 19,726 billion, the topline was ahead of the expectations of Rs 2.41 trillion. Ebitda (earnings before interest, taxes, depreciation, and amortisation) at Rs 42, 516 crore also beat analysts’ estimate of Rs 42,423 crore.

For the full year ended March 2024, RIL’s reported profit after tax was Rs 79,020 crore, up 7 per cent Y-o-Y.

“Initiatives across RIL’s businesses have made a remarkable contribution towards fostering growth of various sectors of the Indian economy. I am happy to share that this year, Reliance became the first Indian company to cross the Rs 1 trillion threshold in (annual) pre-tax profits,” stated Mukesh Ambani, chairman and managing director of the company, in a press statement.

The quarterly consolidated revenue and PBIDT (profit before interest, depreciation and tax), as well as the full year revenue, PBIDT, and net profit figures were RIL’s highest ever, according to Capitaline data.

Srikanth Venkatachari, chief financial officer, RIL, noted: “Tax credits were availed in the fourth quarter of last year (FY23).”

RIL’s board on Monday recommended a dividend of Rs 10 per fully paid-up equity share for FY24, subject to the approval of the company’s members at the ensuing annual general meeting.

The company noted that revenue growth in the March quarter was supported by double-digit growth in the oil-to-chemicals (O2C) and consumer businesses. The oil and gas segment revenue increased sharply by 42 per cent Y-o-Y on the back of higher volumes from KG D6 block.

“Downstream chemical industry experienced increasingly challenging market conditions through the year,” noted Ambani.
Revenue from operations for the retail division was up 9.8 per cent to Rs 67,610 crore in the quarter under review, and the company attributed the growth in gross revenue in this segment to consumer electronics and fashion & lifestyle businesses.
Revenue for Jio Platforms was up 13.4 per cent to Rs 28,871 crore in the same period.

The company reported a 14.3 per cent Y-o-Y growth in its consolidated PBIDT for the quarter to Rs 47,150 crore, aided by strong contributions from all businesses.

PBIDT for Jio Platforms was up 12.5 per cent to Rs 14,360 crore from a year ago. The retail business reported an 18.1 per cent Y-o-Y growth in PBIDT from operations at Rs 5,632 crore.

The O2C division’s Ebitda registered a 3 per cent year-over-year growth at Rs 16,777 crore, supported by advantageous feedstock sourcing, ethane cracking, and higher domestic product placement. Revenue for the O2C division was up 10.9 per cent to Rs 1.42 trillion, primarily on account of improved realisation for the transportation fuels segment and higher volumes.

The company’s oil and gas business reported a quarterly Ebitda of Rs 5,606 crore, up 47.5 per cent, led by higher production.

RIL’s finance costs for the full year 2023-24 were up 18.1 per cent Y-o-Y at Rs 23,118 crore, which the company said was due to higher liability balance and higher market interest rates. Net debt for the company, as of March 2024, was at Rs 1.16 trillion; consolidated gross debt was Rs 3.24 trillion.

For 2023-24, the company said, it spent Rs 1.31 trillion as capital expenditure with investments in pan-Indian 5G roll-out, expansion of retail infrastructure, and new energy business.

“Focus (is) on keeping net debt-to-Ebitda below 1x and supporting growth initiatives through internal accruals," the company said in its presentation.

Shreyansh Shah, research analyst, StoxBox, said: “The company has reported a strong operational and financial contribution from all business segments in Q4FY24. Overall, we believe the company is well-versed in dealing with short-term headwinds and continues to perform well across all business segments, with expectations of further improvement once the global macro environment is stable.”