Reliance Industries Limited (RIL), led by Chairman Mukesh Ambani, has released its third-quarter financial results for FY2024-25, showcasing a strong performance across its key business verticals. This article provides a detailed breakdown of RIL’s Q3 financial highlights, including revenue, profitability, and segment-wise performance.
Key Highlights:
Financial Highlights:
- Net Profit: ₹16,563 crore, reflecting a 9.4% year-on-year increase.
- Revenue: ₹2,40,963 crore, marking a 5% annual growth.
- EBITDA: ₹38,460 crore, up by 8% compared to the same quarter last year.
RIL has demonstrated consistent growth driven by strong performances across its telecom, retail, and oil-to-chemicals (O2C) businesses.
Segment-Wise Performance:
Reliance Jio (Telecom):
- Subscriber Growth: The subscriber base expanded to 485 million, indicating steady growth in the telecom segment.
- ARPU (Average Revenue Per User): Improved to ₹205, reflecting a positive impact from recent tariff hikes.
- Revenue Increase: A 7% rise in revenue and an 8% boost in EBITDA, showcasing sustained performance in the telecom sector.
Reliance Retail:
- Revenue Growth: Retail revenue per square foot increased by 7%, driven by festive season demand.
- Store Expansion: Multiple new retail formats, including Tira, Yousta, and Swadesh, were launched.
- Brand Expansion: The Campa beverage brand was aggressively expanded across multiple regions.
Oil-to-Chemicals (O2C) Business:
- Refining Margins: Margins increased to $7.6 per barrel, improving from $5.6 in the previous quarter.
- EBITDA Growth: The segment’s EBITDA increased by 10% quarter-on-quarter, reflecting a recovery in global refining margins.
Market Reaction:
Following the Q3 earnings release, Reliance Industries’ share price experienced a positive uptick, closing at ₹1,275 per share. The market responded positively to strong financial performance and improving margins across all key segments.
Analyst Insights:
- Morgan Stanley: Maintained an ‘overweight’ rating on RIL, citing strong operational results in retail and telecom with refining recovery already factored into market valuations.
- Jefferies: Issued a ‘buy’ rating with a target price of ₹1,690, indicating optimism about RIL’s diversified business approach.
Investment insights and future outlook:
Positive Factors:
- Consistent Profit Growth: Steady net profit and revenue growth indicate operational strength.
- Diversified Business Portfolio: Strong contributions from telecom, retail, and O2C segments reduce risk.
- Strategic Expansions: New retail formats and brand expansions support long-term revenue growth.
Risks to Consider:
- O2C Margin Volatility: While margins recovered this quarter, they remain sensitive to global crude price fluctuations.
- Debt Levels: Reliance’s ongoing capital expenditure across multiple sectors could impact short-term cash flow.
The Reliance Q3 results reinforce the company’s position as a diversified market leader, with strong performance in telecom, retail, and oil-to-chemicals segments. The consistent profit growth and strategic expansions signal long-term stability, making Reliance Industries an attractive investment consideration.
Stay updated on Reliance Q3 results and make informed investment decisions!
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