Reliance Industries Q4 net profit surges 19% to Rs 19,299 cr

Its revenue from operations rose to Rs 2.16 lakh crore from Rs 2.11 lakh crore in January-March 2022

India’s most valuable firm Reliance Industries Limited (RIL) on Friday reported a consolidated net profit of Rs 19,299 crore for the quarter that ended in March 2023, registering a year-on-year increase of 19 per cent on the back of strong performance in the oil and gas business.

The company’s revenue from operations increased to Rs 2.16 lakh crore for January-March 2023 quarter from Rs 2.11 lakh crore recorded in the corresponding period of the last year, registering a year-on-year growth of 2.1 per cent. However, on a sequential basis, the revenue from operations was down by 1.91 per cent.

“O2C (oil-to-chemical) segment posted its highest-ever operating profit despite global uncertainties and disruptions in commodity trade flows. Our oil and gas segment also delivered very strong growth and is now poised to contribute nearly 30 per cent of India’s domestic gas production,” Chairman and Managing Director of RIL Mukesh Ambani said in a statement.

The company’s EBITDA increased by 22 per cent year-on-year to Rs 38,440 crore for the fourth quarter of 2022-23 on account of higher revenue and an increase in margins in the digital services segment.

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RIL’s gross annual revenue surged by 23.2 per cent to Rs 976,524 crore for the year ended March 2023. Digital services segment achieved 19.6 per cent Y-o-Y growth while retail business grew by 30.4 per cent Y-o-Y.

Revenue of O2C business improved by 18.7 per cent, led by higher realisations on the back of a 19 per cent increase in average Brent crude price. Oil and Gas business revenues surged by 120.3 per cent due to a sharp increase in gas price realisation and a 10.7 per cent increase in KG D6 gas production, RIL said.

Referring to the proposed demerger of the financial services arm, Ambani said, “This gives our shareholders an opportunity to participate in an exciting new growth platform from inception.”

RIL plans to demerge its financial services arm and list the new entity as “Jio Financial Services Ltd.”

Jio continues to digitally empower millions of citizens across the nation, extending True 5G reach to 2,300+ cities and towns in a short span of 6 months. With steady growth in mobility and FTTH subscriber base and an expanding bouquet of content and digital services, the Jio business continues to deliver impressive growth in operating profits, Ambani said.