The latest quarterly results of Reliance Industries Ltd (RIL) have drawn attention as the billionaire Mukesh Ambani-led conglomerate experienced a slight dip in net profit, marking a 1.8% decline compared to the same period last year. Despite steady growth in its retail and telecom segments, RIL’s petrochemicals business faced challenges with lower margins, contributing to the decrease in profitability.
The consolidated net profit for the quarter amounted to ₹18,951 crore, down from ₹19,299 crore recorded in the previous year. This figure fell short of analysts’ expectations, as revealed by a Bloomberg poll where eight analysts had estimated earnings to reach ₹19,726 crore.
However, amidst these challenges, RIL achieved a significant milestone by surpassing ₹10 trillion in consolidated revenue for the fiscal year, becoming the first Indian company to do so. The company’s earnings before interest, tax, depreciation, and amortization (EBITDA) saw a notable 14% increase, accompanied by a 50 basis points rise in EBITDA margin to 17.8%. Consolidated revenue also rose by 11% to reach ₹2.4 trillion.
Looking at the broader picture, RIL’s full-year performance for FY24 showcased resilience and growth, with a consolidated profit of ₹69,621 crore, marking a 4% increase over FY23. Additionally, pre-tax profit surged by 11%, surpassing the ₹1 trillion mark.
To reward its shareholders, RIL announced a dividend of ₹10 per share for FY24, in addition to the ₹9 per share declared earlier in the year.
While facing challenges in certain sectors, RIL remains a formidable force in India’s corporate landscape, demonstrating adaptability and resilience amidst evolving market dynamics. As the conglomerate continues to navigate through opportunities and challenges, investors will closely monitor its strategies for sustained growth and value creation in the future.
