Reliance Industries Q3 Results: Reliance Industries Limited (RIL) has announced the results for the third quarter ending December 2023. The company has registered a consolidated revenue of Rs 2.67 lakh crore in this quarter, which shows an increase of 7.7% compared to the same quarter last year. At the same time, the company’s net profit has also increased by 11.8% to Rs 21,930 crore in the December quarter. This growth is mainly due to the strong performance of digital services, retail and oil-to-chemicals business.
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Great performance of digital services
Reliance’s Digital Services has performed tremendously in the December quarter. The EBITDA of this segment increased by 17% to Rs 16,640 crore. The company’s average revenue per user (ARPU) stood at Rs 203.3, which is the result of the expansion of 5G network and increasing participation of consumers. Jio has rapidly expanded its 5G network and now has 170 million True5G subscribers, who are contributing 40% of the company’s wireless traffic.
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Stable growth in retail business
Reliance’s retail segment is also continuously performing well. The EBITDA of this segment increased by 9% to Rs 6,840 crore. The company took full advantage of the increasing consumer demand during the festive season. Chairman Mukesh Ambani said at the announcement of the results, “The retail segment has performed strongly across all formats and has taken full advantage of consumer demand in the festive season.”
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Contribution of Oil-to-Chemicals Segment
The company’s Oil-to-Chemicals (O2C) segment recorded a growth of 6% due to strong demand in the domestic market and increased volumes. Although the Oil and Gas division’s EBITDA declined by 4%, impacted by lower production at the KG-D6 gas field, the company maintained its upstream performance overall stable.
Capital Expenditure and Cash Flow
Reliance incurred capital expenditure of Rs 32,259 crore in the December quarter, which was well covered by cash flow of Rs 38,227 crore. The company plans to maintain strong growth in the future, especially with potential tariff hikes in the wireless business.
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future prospects
Reliance Industries’ business is expected to benefit further due to continuous growth in digital services and improvement in consumer demand in retail business. Along with this, the company can be expected to get additional profits from improvement in domestic demand and production volumes in the oil-to-chemicals segment.