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Reliance Roars, Q3 Profits Soar by 10.9 Percent, Chairman Mukesh Ambani Credits Diverse Team Efforts

Reliance Industries Stock Surges 23% on NSE, Exceeding Analysts' Expectations

20 January 2024

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Kunal Tyagi

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  • Reliance Industries reports a net profit of Rs 19,641 crore for Q3, reflecting a significant YoY growth of 10.9%.

  • Reliance Jio Infocomm achieves a YoY net profit growth of 12.3%, adding 11.2 million subscribers and completing the fastest rollout of a 5G network in India.

  • Reliance Retail sees a remarkable 32% YoY growth in net profit, driven by the addition of 252 new stores and expanding physical and digital footprint, totaling 18,774 stores.

Reliance Industries, led by Chairman Mukesh Ambani, recently announced its financial results for the third quarter of the current fiscal year, showcasing a robust performance across its diversified business interests. The conglomerate reported a net profit of Rs 19,641 crore, marking a substantial YoY growth of 10.9%. The revenues for the same period stood at Rs 2,48,160 crore, reflecting a commendable YoY growth of 3.2%. This financial success was attributed to the exceptional efforts of teams across Reliance's businesses, as stated by Mukesh Ambani.


The flagship telecommunications and digital services arm, Reliance Jio Infocomm, reported a net profit of Rs 5,208 crore, demonstrating a YoY growth of 12.3%. The company added an impressive 11.2 million subscribers during the quarter, reaching a total base of 470.9 million. Notably, Jio accomplished the fastest rollout of a 5G network, now available nationwide, with strong initial demand observed in underserved Tier III/IV towns and rural areas.


In the retail sector, Reliance reported a net profit of Rs 3,165 crore, marking a substantial YoY growth of 32%. The gross revenue for the retail business stood at Rs 83,063 crore, reflecting a remarkable 23% YoY growth. Reliance Retail's success was driven by its expanding physical and digital footprint, with the addition of 252 new stores during the quarter, bringing the total count to 18,774 stores.


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Reliance Industries, as a whole, delivered a performance that exceeded analysts' estimates, with its stock surging by 23% on the NSE since October 2023. The consolidated net profit, consolidated revenue, and EBITDA all witnessed double-digit growth, driven by the impressive performance of consumer businesses and the oil & gas segment.


Jio Platforms, the digital services powerhouse, reported a strong 11.6% YoY growth in net profit at Rs 5,445 crore, with record-high revenue of Rs 32,510 crore. The rollout of the Jio True 5G network across India and the migration of 90 million subscribers to the 5G network underscored Jio's technological prowess and market dominance.


The oil & gas business, particularly the exploration and production segment, recorded a healthy performance with a 50.2% YoY growth in revenue at Rs 6,719 crore. The O2C segment showcased resilience, adapting to operational challenges and strong domestic demand, with a marginal increase in EBITDA.


The future outlook remains promising, with the New Energy Giga Complex set to be commissioned in the second half of CY24. Additionally, the media business reported strong operating performance across verticals, with notable growth in TV and digital news segments.


However, increased tax costs and higher debt on the books were observed during the quarter. Tax expenses rose by 22.1% YoY, reaching Rs 6,345 crore, while finance costs increased by 11.3% to Rs 5,789 crore. The outstanding debt at the end of December FY24 stood at Rs 3,11,743 crore, contributing to a net debt of Rs 1,19,372 crore.


In conclusion, Reliance Industries' stellar Q3 performance underscores its resilience, adaptability, and strategic investments across diverse sectors, positioning the conglomerate for sustained growth and leadership in India's business landscape.


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