RIL's Retail Biz Records 5.2% YoY Increase In Profits

Reliance Industries has reported a net profit of Rs 17,448 crore for the quarter ended 30th June 2024 (Q1). This is a 4.2 per cent drop compared to last year's period. In Q1 last year, RIL generated a net profit of Rs 18,182 crore. EBITDA increased by 2.0 per cent YoY to Rs 42,748 crore. This was led by strong contributions from the oil & gas segment. The segment’s EBITDA increased by 29.8 per cent due to higher volumes from KG D6.

The company’s revenue from operations saw an increase this year. It reported a 12 per cent YoY increase in Q1’25, as it posted Rs 2,36,217 crore as its revenue from operations. Last year during the same period it was Rs 2,10,831 crore.

The expenses also increased during Q1’25 as the company reported Rs 2,16,966 crore as its total expenses. This is a YoY increase of around 14 per cent. In Q1’24, RIL’s total expenses stood at Rs 1,90,350 crore. The company’s depreciation expenses touched Rs 13,596 crore in Q1’25 which was a 15.4 per cent YoY increase, being one of the primary reasons for the decline in profits. The company attributed the same to an expanded asset base across all the businesses, higher network utilisation in the digital services business, higher retail store count and ramp-up in upstream production.

Segment-wise, RIL’s oil to chemical business (O2C) saw a 19 per cent YoY decline in profits in Q1’25, which stood at Rs 10,686 crore. This was Rs 13,196 crore in Q1’24.

There was a 5.2 per cent YoY increase in profits for the company’s retail business, which includes consumer retail and a range of related services. The retail segment generated Rs 4,002 crore profit in Q1’25 as compared to Rs 3,802 crore in Q1’24. The digital services segment posted an 11 per cent increase in profits, registering Rs 8,806 crores in Q1’25, which was Rs 7,936 crore in Q1’24.

“Retail business delivered robust financial results, as compared to last year, well supported by all consumption baskets. With fast-paced expansion of its retail footprint, Reliance Retail continues to cement its position as the preferred retailer for millions of Indians. The digital and new commerce segments are also scaling up rapidly. Reliance Retail is focused not only on providing quality products to customers, but also on enhancing overall customer experience, both during and after sales,” said Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries.