Reliance Industries Achieves Historic Milestone: Crosses Rs 100,000 Crore Pre-Tax Profit Threshold

Reliance Industries Limited (RIL), led by Mukesh Ambani, has achieved a historic milestone, becoming the first Indian company to surpass the Rs 100,000 crore mark in pre-tax profits. This remarkable feat comes amidst a year of continued growth across the company's diverse business segments.

Robust Performance Across Key Sectors

For the year ending March 2024, RIL reported a gross revenue of Rs 10 lakh crore ($119.9 billion), reflecting a 2.6% year-on-year increase. This growth was driven by strong performances in:

• Jio Platforms: Revenue surged by 11.7% year-on-year, fueled by a significant rise in subscribers (42.4 million) across mobile and home segments, along with an improved average revenue per user (ARPU).

• Reliance Retail: Revenue jumped by an impressive 17.8% year-on-year. This growth was attributed to strong sales across all consumption categories, an expansion of gross retail space by 15.6 million sq. ft., and a record-breaking footfall exceeding one billion customers.

Challenges and Countermeasures

RIL's O2C (Oil to Chemicals) segment faced a 5% decline in revenue due to lower product price realization, primarily caused by a 13.5% year-on-year drop in average Brent crude oil prices. However, the company was able to partially offset this decline through higher sales volumes.

On the other hand, the Oil & Gas segment witnessed a significant 48% increase in revenue. This growth stemmed from higher volumes extracted from the KG-D6 block, despite a decrease in gas price realization from the same field.

Mukesh Ambani on RIL's Achievements

Commenting on the results, Mukesh Ambani, Chairman and Managing Director of Reliance Industries, highlighted the company's contributions to various sectors of the Indian economy. He emphasized the robust financial and operational performance across all segments, which not only strengthened the national economy but also led to several milestones.

Jio: Leading India's 5G Transformation

Ambani attributed the success of the digital services segment (Jio) to the accelerated expansion of its subscriber base, encompassing both mobile and fixed wireless services. With over 108 million True 5G customers, Jio has emerged as a frontrunner in India's 5G revolution.

Reliance Retail: Unmatched Customer Experience

Reliance Retail's robust omni-channel presence continues to provide customers with a vast array of choices. Ambani highlighted the company's efforts to offer product differentiation, superior in-store experiences through store remodeling, and a broader brand catalog on digital commerce platforms. Additionally, Reliance Retail's initiatives in the new commerce space empower millions of merchants.

Resilience in Challenging Times

While acknowledging the strong global demand for fuels and limited refining flexibility worldwide, which supported margins and profitability in the O2C segment, Ambani also addressed the increasingly challenging market conditions faced by the downstream chemical industry. Despite these headwinds, RIL's commitment to cost management and operational excellence ensured a resilient performance. The KG-D6 block achieved a significant milestone by reaching a production capacity of 30 MMSCMD, contributing to 30% of India's domestic gas production.

Quarterly Performance Highlights

RIL's gross revenue for the quarter ending March 2024 was Rs 2.64 lakh crore ($31.8 billion), reflecting a 10.8% year-on-year increase. This growth was driven by double-digit growth in the O2C and consumer businesses. The Oil & Gas segment also witnessed a sharp increase of 42% in revenue due to higher production volumes from the KG-D6 block. Furthermore, EBITDA increased by 14.3% year-on-year to Rs 47,150 crore ($5.7 billion), with strong contributions from all business sectors.

Looking Ahead: A Commitment to Sustainable Growth

Ambani reiterated RIL's unwavering commitment to ongoing projects and initiatives, particularly in the New Energy segment. These endeavors will further strengthen the company and propel it towards achieving sustainable growth for the future.

Conclusion:

Reliance Industries' monumental achievement of crossing the Rs 100,000 crore pre-tax profit threshold underscores its unwavering commitment to excellence and innovation. With a diverse portfolio of businesses poised for sustained growth and a visionary leadership at the helm, RIL is poised to chart new frontiers of success and prosperity in the years to come.