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    Reliance Industr

    RELIANCE
    Oil, Gas & Consumable Fuels·16 Jan 2025
    Management Summary

    Reliance Industries Limited reported a strong Q3 FY25, with consolidated revenue, EBITDA, and PAT growing close to 8%, 8%, and 12% year-on-year respectively. Consumer businesses, particularly Jio and Retail, showed robust growth, with Jio's ARPU increasing by 12% and Retail's revenue crossing ₹90,000 crores. The O2C segment demonstrated resilience with a 16% sequential EBITDA growth, driven by higher volumes and domestic demand. The company highlighted strong operational streamlining benefits and strategic investments across its diverse portfolio.

    Highlights

    12

    • Consolidated Revenue growth close to 8% YoY

    • Consolidated EBITDA growth close to 8% YoY, and 9% QoQ

    • Consolidated PAT growth close to 12% YoY

    • Jio Platforms operating revenues grew 19.4% YoY to ₹33,074 crores

    • Jio Platforms EBITDA increased 18.8% YoY to ₹16,585 crores

    • Jio Platforms Profit After Tax grew 26% YoY to ₹6,857 crores

    • Jio ARPU at ₹203.3, up 12% YoY

    • Jio added 3.3 million subscribers, reaching a base of 482.1 million

    • Reliance Retail revenue reached ₹90,000 crores, up 9% YoY and 18.4% QoQ

    • Reliance Retail EBITDA grew 9.5% YoY to ₹6,800 crores, with margins expanding to 8.6%

    • O2C segment EBITDA grew 2.4% YoY to ₹14,400 crores, and 16% QoQ, with margins improving 160 basis points to 9.6%

    • E&P EBITDA increased over 5% QoQ to ₹5,565 crores, with margins at 87.4%

    Guidance & targets

    8
    CategoryTargetPriority
    Market Share
    Air Fiber Provider Ranking
    largest globally
    		Medium
    Volume
    Home Connections
    100 million plus
    		Medium
    Volume
    Bank Branches Connected
    150,000
    		Medium
    Revenue
    Campa & Independence Turnover
    ₹1000 crores (individually)
    		High
    Capacity
    PVC and CPVC Production Capacity
    1.5 million tons
    		High
    Capacity
    VLEC Fleet Size
    three more
    		High
    Capacity
    Specialty Polyester Capacity
    million tons
    		High
    Capacity
    PTA Capacity
    3 million tons
    		High
    2 min read

    Detailed Narrative

    Reliance Industries Limited reported a strong operating quarter for Q3 FY25, with consolidated revenue, EBITDA, and PAT growing close to 8%, 8%, and 12% year-on-year, respectively. The company highlighted robust sequential performance, with aggregate EBITDA up 9%, retail EBITDA up 17%, and O2C EBITDA up 16% quarter-on-quarter. This growth was attributed to a strong festive season, improved customer traction, and operational streamlining efforts across businesses. The average revenue per user (ARPU) for Jio increased by 12% to ₹203, driven by tariff hikes and new customer additions, particularly in Fiber-to-the-Home (FTTH).

    Jio's digital services continued its strong trajectory, adding 3.3 million subscribers, bringing the total base to 482.1 million. The 5G customer base reached 170 million, contributing nearly 40% of wireless traffic. Jio AirFiber saw significant demand, with 2 million new home connections in the quarter, and is projected to become the largest air fiber service provider globally in the next few months. The company is also expanding its enterprise business, aiming to connect up to 150,000 bank branches and developing AI infrastructure to gigawatt scale, including a JioCloudPC solution for consumers.

    Reliance Retail achieved a milestone with ₹90,000 crores in revenue, growing 9% year-on-year and 18.4% quarter-on-quarter. EBITDA for the retail segment was ₹6,800 crores, up 9.5% year-on-year, with margins expanding to 8.6%. The B2C grocery business grew 37% year-on-year, and the fashion and lifestyle segment saw a strong rebound. The company expanded its footprint by opening 779 new stores, bringing the total to 19,100. Consumer brands like Campa and Independence are gaining traction, with each expected to cross ₹1,000 crores in turnover by FY25.

    The Oil-to-Chemicals (O2C) segment delivered a resilient performance with EBITDA of ₹14,400 crores, up 2.4% year-on-year and 16% quarter-on-quarter. This was supported by higher volumes (up 9%), favorable feedstock sourcing, and strong domestic demand for fuels and polymers. Gasoline and diesel volumes increased by 44% and 23% respectively. The Exploration & Production (E&P) business maintained a steady performance, with EBITDA of ₹5,565 crores, up over 5% quarter-on-quarter, and strong margins of 87.4%. KGD6 production remained stable at 28.04 mm CMD.

    Management expressed a bullish outlook, emphasizing the strength of domestic demand across all segments. Strategic investments in O2C, including a 1.5 million tons PVC/CPVC facility and adding three more VLECs, are expected to enhance cost competitiveness and market position, aiming to become a top 10 global producer. The company's focus on operational efficiency, market expansion, and leveraging technology, including AI, positions it for continued growth, with consumer businesses now accounting for 52% of segment EBITDA.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.