Diversified conglomerate Reliance Industries (RIL) reported a consolidated net profit of Rs 16,011 crore for the quarter ended June 2023, marking an 11% YoY drop. Consolidated revenue also declined by 5.3% YoY to Rs 2.11 lakh crore.
The bottomline came in lower than the ET Now poll’s expectation of Rs 16,421 crore. Despite this, the board recommended a dividend payout of Rs 9 per share, pending approval from shareholders.
Sequentially, the consolidated topline declined by 2.5%, and the bottomline fell even steeper by 17%.
The primary reason for the revenue drop was the weak performance of the oil-to-chemicals (O2C) business, which saw revenue plunge nearly 18% YoY to Rs 1.33 lakh crore. This segment constituted 63% of RIL’s total revenue for the reporting quarter.
However, the retail and digital services businesses’ double-digit growth helped offset a steeper drop in the topline and bottomline. The consolidated revenue of the retail business increased about 20% YoY to Rs 69,962 crore, and the digital services revenue grew nearly 13% YoY to Rs 32,077 crore.
Despite the challenges in the O2C business, RIL achieved a record quarterly operating profit for the June quarter. The operating profit, calculated as earnings before interest, tax, depreciation, and amortization (EBITDA), rose 5% YoY to Rs 41,982 crore.
The consolidated capital expenditure for the quarter amounted to Rs 39,645 crore, lower than the Rs 44,413 crore spent in the March quarter. The outstanding debt as of June 30 was Rs 3.19 lakh crore, compared to Rs 3.14 lakh crore a quarter ago.
On the other hand, cash and cash equivalents stood at Rs 1.92 lakh crore as of June end, compared to Rs 1.88 lakh crore a quarter ago.
Despite facing challenges in certain segments, RIL’s strong performance in retail and digital services indicates potential for growth in these areas. The company’s strategies and financial outlook will be closely monitored by investors and analysts in the coming months.
