Reliance Industries Q2 Results Highlights: Net profit slides 3.6% YoY, while revenue remains flat at ₹2.35 lakh crore

• On a consolidated basis, Reliance Industries reported a 0.8% YoY rise in gross revenue to ₹2.58 lakh crore during the September quarter. Meanwhile, its net profit declined by 3.6% YoY to ₹19,101 crore.

• The company’s EBITDA stood at ₹43,934 crore, down 2% YoY, while the EBITDA margin contracted by 50 basis points to 17% during the second quarter.

• Oil and gas exploration and production business revenue stood at ₹6,222 crore, down 6% YoY, mainly due to lower gas price realisations.
• The average gas price for KG D6 gas stood at $9.55/MMBTU in Q2FY25 compared to $10.46/MMBTU in Q2FY24.
• EBITDA increased to ₹5,290 crore, up by 11% YoY. EBITDA margin was at 85% for Q2FY25.

• Reliance Industries Media business reported a 2.1% YoY fall in revenue from operations at ₹1,825 crore. Meanwhile, the company’s net loss stood at ₹188 crore compared to ₹155 crore in the same quarter of FY24.

• As per the company, a sharp drop in revenues from the movie segment impacted the overall business. However, JioCinema continues to be the fastest-growing subscription-based OTT platform, crossing 16 million paid subscribers with 2x Q-o-Q growth.

• Segment Revenue for 2Q FY25 increased by 5.1% Y-o-Y to ₹ 155,580 crore primarily on account of higher volumes and increased domestic placement of products.
• Segment EBITDA for 2Q FY25 is lower by 23.7% Y-o-Y to ₹ 12,413 crore ($ 1.5 billion). Unfavourable demand-supply balance led to sharp ~50% decline in transportation fuel cracks and continued weakness in downstream chemical deltas.
• Exports from the Oil to Chemicals business also declined 15% YoY to ₹70631 crore as compared to ₹83,834 crore in the previous year similar period.

• Gross revenue for the quarter declined marginally at ₹76,302 crore as compared to ₹77,148 crore during previous year similar quarter.
• The subdued topline growth is largely attributable to by weak Fashion and Lifestyle (F&L) demand, continued focus on streamlining of operations and calibrated approach to B2B business to improve margins.
• The retail arm's total store count increased by 1.6% YoY to 18,946 as compared to 18,650 stores in Q2FY24. The footfall growth in these stores remained strong at 297 million, which 14% higher than 260 million reported during last year same period.

• Reliance Jio reported an 18% YoY rise in revenue to ₹31,709 crore during the September quarter. Meanwhile, its net profit rose by 23.4% YoY to ₹6,539 crore.

• The company’s EBITDA stood at ₹15,931 crore, up 17.8% YoY, while the EBITDA margin contracted by 10 basis points to 50.2% during the second quarter.

• Jio total user base grew by 4.2% YoY 478.8 million. Average revenue per user (ARPU) increased to ₹195.1, up by 7.4% YoY during the quarter, aided tariff hike and a better subscriber mix.

• Oil to Chemicals (O2C) revenue improved with higher volumes and increased domestic placement of products.
• Digital services revenue increased with the impact of revised telecom tariffs for mobility services and scale-up of homes and digital services businesses.
• Lower gas price realizations led to 6% lower revenue in the Oil and Gas segment.

• Total revenue for the quarter largely remained unchanged at ₹258,027 crore as compared to ₹255,996 crore in the previous year similar period.
• The net profit for the quarter declined by 3% YoY to ₹19,101 crore as compared to ₹19,820 crore for Q2FY24.

The total consolidated revenue from operations jumped 12% YoY to ₹2,36,217 crore compared to ₹2,10,831 crore in the year-ago quarter.

The company's net profit (attributed to shareholders of the company) declined 5% to ₹15,138 crore in Q1 FY25 as compared to ₹16,011 crore a year back. Sequentially, net profit declined 20% compared to ₹18,951 crore in Q4 FY24.

• Traded volume (Lakhs): 49.73
• Traded value: ₹1,365.84 crore
• Total market capitalisation: ₹18,54,751.56 crore
• Free float m-cap: ₹9,28,325.89 crore

• Current price: ₹2,740 (-0.15%)
• Previous close: ₹2,744.2
• Open: ₹2,758.9
• High: ₹2,760.1
• Low: ₹2,736.5

• Mukesh Ambani, Chairman & Managing Director
• Akash Ambani, Non-Executive Director
• Isha Ambani, Non-Executive Director
• Anant Ambani, Non-Executive Director
• Nikhil Meswani, Executive Director
• Hital Meswani, Executive Director
• PMS Prasad, Executive Director
• Raminder S Gujral, Independent Director
• Arundhati Bhattacharya, Independent Director
• Shumeet Banerji, Independent Director
• KV Chowdary, Independent Director
• KV Kamath, Independent Director
• HE Yasir Othman Al Rumayyan, Independent Director
• Haigreve Khaitan, Independent Director

According to media reports, Reliance Industries Ltd is in talks to acquire a stake in filmmaker Karan Johar's Dharma Productions.

• Oil and gas exploration & production
• Energy
• Refining & marketing
• Digital Services- Jio
• Textiles
• Polymers
• Petrochemicals
• Fibre intermediates
• Elastomers
• Polyesters
• Aromatics
• Reliance Composites Solutions
• Retail
• Media and entertainment
• New energy and new materials

Reliance Jio is expected to post steady performance due to the company's price hike (0.6% QoQ subscriber growth and 7% QoQ ARPU growth). The retail segment's profitability is likely to be resilient.