Reliance Industries Ltd. (RIL) reported first-quarter consolidated net profit declined 4% to ₹17,448 crore from the year-earlier period, largely due to higher depreciation.

“Consolidated revenue for the quarter ended June 30, 2024 increased 11.5% year on year (YoY) to ₹2,57,823 crore led by higher oil prices and volumes in O2C [Oil to Chemicals] and oil and gas segments with steady growth in consumer businesses,” the company said in a regulatory filing.

For the quarter ended June, the company reported capital expenditure of ₹28,785 crore. Consolidated net debt as of June 30, 2024 was marginally lower at ₹1,12,341 crore as against ₹1,16,281 crore as of March 31, 2024. 

“Consolidated EBITDA [at ₹42,748 crore, up 2% YoY] for the quarter improved from a year ago with strong contribution from consumer and upstream businesses offsetting weak O2C operating environment,” Chairman and Managing Director Mukesh D. Ambani said in a statement.

“Reliance’s resilient operating and financial performance in this quarter underscores the strength of its diverse portfolio of businesses. Importantly, these businesses are contributing significantly to India’s growth, providing vital energy and vibrant channels for digital and physical distribution of goods and services,” he added.

Jio Platforms reported net profit for the quarter grew 11.7% YoY to ₹5,698 crore. The average revenue per user (ARPU) came in at ₹181.7 with better subscriber mix, partially offset by increasing mix of promotional 5G traffic being offered on an unlimited basis to subscribers and not charged separately, the company said.

Reliance Retail reported gross revenue of ₹75,615 crore, up 8.1% YoY. Its quarterly EBITDA at ₹5,664 crore was a 10.5% YoY growth, led by an increase in footfalls and expansion of store footprint, besides streamlining of operations driving margin improvement. The company’s O2C segment reported revenue growth of 18.1% YoY to ₹1,57,133 crore primarily on account of higher product prices, tracking a 9% increase in Brent crude oil prices, and higher volumes supported by strong domestic demand, the company said.

The EBITDA of this segment for the quarter was lower by 14.3% YoY at ₹13,093 crore due to lower transportation fuel cracks, particularly gasoline cracks, which was down 30% YoY. Downstream chemical margins were also lower at 15-17% on a YoY basis, RIL added.

The oil and gas business reported 33.4% higher revenue compared with the same period last year, mainly on account of higher volumes partly offset by lower price realisation from KG D6 and CBM Field, it said.

The average price realised for KG D6 gas was $9.27/MMBTU during this quarter as compared with $ 10.81/MMBTU in the year earlier period. The average price realised for CBM gas was $ 11.59/MMBTU as compared with $14.15/MMBTU in the same period last year. The segment’s EBITDA increased to ₹5,210 crore, up 29.8% YoY. 

Mr. Ambani said the digital services business registered an impressive financial performance year on year, continuing its positive growth momentum. 

“Retail business delivered robust financial results, as compared to last year, well supported by all consumption baskets. The deep integration and flexibility built into our O2C business model helped mitigate the impact of challenging operating environment. The business was impacted by lower fuel cracks with tepid global demand and ramp-up of new refineries,” he added. 

Mr. Ambani said the oil and gas segment continued its growth trajectory with higher production, offsetting lower year-on-year gas price realisations.