Reliance Industries Ltd. (RIL) has announced a marginal increase in its net profit for the fiscal fourth quarter, driven primarily by a rebound in its main oil-to-chemicals (O2C) sector. The conglomerate reported a net profit of Rs 21,243 crore for the quarter ending March 31, exceeding expert projections.
Despite the slight uptick in net profit, the company’s owners received lower profits at Rs 18,951 crore compared to Rs 19,299 crore in the same period last year. However, RIL’s board has decided to distribute a dividend of Rs 10 per share.
In an exchange filing on April 22, India’s most valued firm disclosed that its revenue for the fourth quarter stood at Rs 2.41 lakh crore. This figure outpaced analyst forecasts, which projected a profit of Rs 18,248 crore on revenue of Rs 2.39 lakh crore, based on an average of 10 brokerage estimates.
Mukesh D. Ambani, Chairman and Managing Director of Reliance Industries Limited, highlighted the company’s achievements, stating, “Reliance became the first Indian company to cross the Rs 100,000-crore threshold in pre-tax profits.” He attributed this success to strong global demand for fuels, along with limited flexibility in the refining system worldwide, which supported margins and profitability in the O2C segment. Despite challenges faced by the downstream chemical industry, RIL managed to deliver a resilient performance by prioritizing cost management.
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The company’s consolidated EBITDA for the quarter ended March 31 witnessed a notable increase of 14.3% to Rs 47,150 crore compared to the same period last year. RIL’s four primary segments – Jio, Retail, Oil & Gas, and O2C – all posted robust operating results, with strategic feedstock procurement and robust domestic markets contributing to the strong performance of the oil-to-chemicals sector despite margin pressure.
In addition, the oil and gas industry experienced strong growth, with a 47.5% increase over the previous year, while EBITDA for the retail sector surged by 18.5% to Rs 5,829 crore. Reliance Jio, the company’s telecommunications arm, witnessed significant subscriber growth, with 10.9 million new users joining in the fourth quarter alone. Furthermore, the rapid deployment of the 5G network by Reliance Jio led to over 108 million subscribers transitioning to 5G.
A cash profit of Rs 37,769 crore more than offset RIL’s capital expenditures of Rs 23,207 crore in the fourth quarter, underlining the company’s strong financial position and operational efficiency.
