October 30, 2023
New Delhi, India
Reliance Industries Q2 Highlights
In a remarkable financial performance for the second quarter of fiscal year 2024, Reliance Industries Ltd (RIL) reported a consolidated net profit of Rs 19,878 crore, showcasing a substantial 30 percent year-on-year growth. The success in this quarter can be attributed to key growth drivers within the company.
Reliance Retail Leads the Way
Reliance Retail emerged as a front-runner, spearheading the growth. The consumer electronics and Fashion & Lifestyle segments maintained steady growth with a 32 percent year-on-year growth rate. Consumer brands, encompassing beverages, general merchandise, and staples categories, displayed substantial growth. Reliance Retail strategically capitalized on regional festivals, new product launches, and promotions to drive growth in categories such as air conditioners, phones, and refrigerators. Their focus on expanding distribution reach and engagement in the General Trade channel resulted in a remarkable fourfold year-on-year revenue growth.
Retail Network Expansion
Reliance Retail further expanded its footprint by opening 471 new stores during the quarter. This expansion brought the total store count to an impressive 18,650, encompassing a vast retail area of 71.5 million square feet. Such substantial growth was mirrored in a significant increase in footfalls, with over 260 million visitors across various formats. This expansion reflects strong consumer interest and growth in offline retail.
Jio Telecom Continues to Shine
Reliance’s Jio telecom business also played a pivotal role in the company’s growth. The network experienced a surge in data usage, along with continuous subscriber additions. Notably, Jio added 11.1 million subscribers during the quarter, while data and voice traffic saw substantial increases, with 28.5 percent and 8.3 percent year-on-year growth, respectively. The robust subscriber growth across mobility and wireline services, in addition to the scale-up of the digital services platform, drove consolidated revenue and EBITDA growth.
Oil Demand Remains Robust
Despite challenges in the oil-to-chemicals (O2C) business due to a fall in crude oil prices, Reliance Industries reported strong domestic demand for transportation fuels. Continuing momentum in automobile sales and air passenger traffic resulted in an increase in demand for high-speed diesel (HSD), motor spirit (MS), and aviation turbine fuel (ATF), with growth rates of 4.3 percent, 5.7 percent, and 13.5 percent, respectively, compared to the same quarter the previous year.
In summary, Reliance Industries‘ fiscal second-quarter results reflect impressive growth in retail and telecom, despite challenges in the O2C business. The company’s strategic retail expansion and Jio’s subscriber base and data usage have been key drivers of this strong financial performance. Additionally, robust oil demand in transportation fuels further contributed to RIL’s success in the quarter.
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