Reliance shares fall over 2% after Q1 net profit declines 5% on weak oil-to-chemicals biz

The stock was trading 2.4% lower at ₹3,033.5 on the National Stock Exchange (NSE) in the early trade. It shed 2.3% to ₹3,037.3 on the BSE.

Retail and telecom business grow

RIL continued to post an upturn in consumer businesses of retail and telecom. While Jio became the largest telecom operator globally in terms of data tariff as 5G propelled usage, the retail business showed a steady performance due to a surge in footfalls at its expanded store network.

Depreciation/amortisation expenses rose 15.5% to ₹13,596 crore due to expanded asset base across all businesses.

Operationally, the from posted a 2% growth in EBITDA (earnings before interest, taxes, depreciation, and amortisation), at ₹42,748 crore.

Revenue from operations rose 11.5% to ₹2.57 lakh crore from ₹2.31 lakh crore in the corresponding period last year but were lower than ₹2.64 lakh crore in January-March 2024.

The oil refining and petrochemicals segment posted a 14.3% decline in EBITDA to ₹13,093 crore.

This was "due to lower transportation fuel cracks, particularly gasoline (petrol) cracks, which was down 30% year-on-year. Downstream chemical margins were also lower on a y-o-y basis", the statement said.

Reliance Jio Infocomm posted an 11.7% rise in net profit to ₹5,698 crore, with the consumer base swelling to 489.7 million from 481.8 million on March 31, 2024, and per-user revenue (ARPU) rising to ₹181.7 from ₹180.5.

Commenting on the results, Mukesh Ambani, Chairman and Managing Director of Reliance Industries Limited, said, "Consolidated EBITDA for the quarter improved from a year ago with strong contribution from consumer and upstream (oil and gas) businesses offsetting weak O2C operating environment. Reliance's resilient operating and financial performance in this quarter underscores the strength of its diverse portfolio of businesses."

The digital services business registered an impressive financial performance YoY, he added.