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- The first of the company’s new energy giga-factories is on track to begin production of solar PV modules by the end of this year
NE BUSINESS BUREAU
MUMBAI, OCT 15
Reliance Industries Ltd (RIL) on Monday reported consolidated profit at Rs 16,563 crore for the July-September quarter (Q2) of 2024-25. It posted revenue from operations at Rs 235,481 crore, marginally higher than Rs 234,956 crore posted during the second quarter of previous financial year.
Despite the decline in net profit, the company’s performance in the second quarter was better than street estimates.
Reliance Jio experienced a 7.4% year-on-year increase in its average revenue per user (ARPU) for Q2 FY25, climbing to Rs 195.10 from Rs 181.70 in the same period last year.
Reliance reported consolidated earnings before interest, tax, depreciation and amortization (EBITDA) of Rs 43,934 crore, reflecting a 2% decline year-on-year, while EBITDA margins dropped by 50 basis points to 17%.
Finance costs for the quarter increased by 5% year-on-year to Rs 6,017 crore ($718 million), driven by higher debt.
Despite these challenges, RIL saw strong growth in its digital services and upstream business, which helped offset weaker contributions from its oil-to-chemicals (O2C) segment, impacted by global demand-supply headwinds.
“Reliance once again demonstrated the resilience of its diversified business portfolio. Robust growth in digital services and upstream business helped partially offset the weak performance in O2C, which was impacted by unfavourable global demand-supply dynamics,” said RIL Chairman and Managing Director Mukesh Ambani. He announced that the first of the company’s new energy giga-factories is on track to begin production of solar PV modules by the end of this year.
However, RIL’s consolidated revenue for Q2 came in at Rs 2.31 trillion, marginally lower than a year ago. The O2C business saw revenue growth due to higher volumes and increased domestic placement of products, but revenue from the retail business declined 3.5 per cent Y-o-Y.
