Reliance Industries Limited (RIL) chairman Mukesh Ambani. File
| Photo Credit: PTI

Reliance Industries Ltd reported second quarter consolidated net profit dropped 2.8% to ₹19,323 crore from ₹19,878 crore in the same period last year.

Gross revenue for the quarter ended September 30, 2024 remained stable Y-o-Y at ₹2,58,027 crore, the company said in a filing.

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, the company said.

The company’s EBITDA decreased by 2.0% Y-o-Y to ₹43,934 crore. EBITDA for Jio Platforms Limited (JPL) increased 17.8% Y-o-Y due to better subscriber mix, digital services scale-up and revision in telecom tariffs, the company said.

EBITDA margin for Reliance Retail Ventures Limited (RRVL) improved by 30 bps with continued focus on streamlining of operations and calibrated approach in B2B. O2C EBITDA was lower by 23.7% on account of sharp decline in product margins. Fuel cracks declined by nearly 50% Y-o-Y, it said.

Downstream chemical also declined with muted global demand in a well-supplied market. RIL benefited due to superior ethane cracking economics driven by sharp fall in ethane prices.

Oil and Gas segment EBITDA increased by 11.0% on account of sustained volume growth and one time provisioning towards decommissioning cost for Tapti field in Q2 FY 24.

Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries Limited said: “I am happy to note that during this quarter Reliance once again demonstrated the resilience of its diversified business portfolio. Our performance reflects robust growth in Digital Services and Upstream business. This helped partially offset weak contribution from O2C business which was impacted by unfavorable global demand-supply dynamics.”

“Growth in Digital Services was led by increased ARPU and improving customer engagement metrics reflecting the strong value proposition of our services. The home broadband segment is witnessing accelerated momentum on the back of our unique industry-leading JioAirFiber offering. Jio’s broad spectrum of offerings enables it to digitally empower every village, town and city in India as well as the country’s small and medium scale enterprises. The digital services business continues to focus on innovative deep-tech solutions on a national scale and is on track to deliver the path-breaking benefits of Artificial Intelligence to all Indians,” he said.

“The retail segment continues to increase its consumer touchpoints and product offerings across physical and digital channels. The unique omni-channel retail model enables the business to service a wide range of requirements of a vast, heterogenous customer base. The retail business continues to partner with renowned domestic as well as global players, expanding its basket of quality product offerings. The focus on strengthening our Retail operations will help us rapidly scale-up this business in the coming quarters and years and sustain our industry-leading growth momentum,” he added.