RIL Q1 net profit falls 10.8% YoY to ₹16,011 crore rising finance cost, depreciation

RIL: Q1 net profit down 10.8%, Jio Platforms net profit up 12.5%, Reliance Retail net profit up 18.8%. RIL's O2C business impacted by sharp drop in crude oil prices, lower price realization of downstream products. Jio on track to complete Pan India 5G rollout before Dec 2023. Good performance of consumer facing businesses to help in value unlocking.

Reliance Industries Ltd. (RIL) reported that its first quarter consolidated net profit dropped 10.8% to ₹16,011 crore from ₹17,955 crore in the year-ago period on account of a 46% increase in finance cost and 31.7% rise in depreciation.

The company’s revenues at ₹2,31,132 crore was down 4.7% Year on Year (YoY) on account of a sharp decline of 31% in crude prices during the quarter ended June 30, 2023. However, a good show in the retail division and increased volume in the Oil to Chemicals (O2C) and Oil & Gas businesses partly offset the downside.

The board of directors has recommended a dividend of ₹9 per share.

“Reliance’s strong operating and financial performance this quarter demonstrates the resilience of our diversified portfolio of businesses that cater to demand across industrial and consumer segments,” Mukesh D. Ambani, Chairman and Managing Director, RIL said.

Jio Platforms Ltd. reported 12.5% growth in quarterly net profit at ₹5,098 crore. Gross revenues increased 11.3% to ₹30,640 crore. The operating revenue growth was driven by subscriber gains in the connectivity business and the scaling up of digital services.

Jio continued to lead industry’s net subscriber addition with 9.2 million adds in Q1. ARPU increased 2.8% during the quarter.

”Jio continues to make rapid progress in rolling out its True5G network. It is on track to complete Pan India 5G rollout before December 2023,” Akash Ambani, Chairman, Reliance Jio Infocomm Ltd. said.