Reliance Industries Limited Q2 FY24 Earnings Conference Call Insights

Key highlights from Reliance Industries Limited (RELIANCE) Q2 FY24 Earnings Concall

• Financial Performance
  • Q2 EBITDA reached record INR45,000 crores, up 30% YoY.
  • Net profit grew 30% YoY to INR20,000 crores.
  • Growth seen across consumer business, digital services, O2C and oil & gas.
• Retail Business Growth
  • Retail revenues grew 19% YoY to INR77,000 crores.
  • Categories like grocery, fashion/lifestyle driving growth.
  • Raised equity from investors, transferred warehousing assets.
  • EBITDA grew 32% to INR5,820 crores.
  • Added 471 new stores in 2Q, total store count grew over 2,000 YoY.
  • Festive sales boosted demand across categories like consumer electronics, fashion and grocery.
• Digital Services Traction
  • Revenues grew 11% YoY to INR32,000 crores.
  • EBITDA grew 12.5% to INR13,500 crores.
  • Added 11.1 million subscribers, total additions of 32 million YoY.
  • Data traffic grew 29%, 5G adoption crossed 70 million users.
• Oil to Chemicals Performance
  • Revenues declined 7.3% to INR148,000 crores due to lower oil prices.
  • EBITDA grew 36% YoY to INR16,300 crores on volume growth, higher cracks and margins.
  • Domestic polymer and fuel demand holding up well, driving growth.
• Jio 5G Network Rollout
  • Over 1 million 5G sites deployed, over 70 million users migrated to 5G so far.
  • Monthly 5G traffic crossed 1.5 exabytes.
• Fixed Wireless Services
  • Seeing strong demand for Jio AirFiber, currently ramping up supply chain and installation capabilities.
  • Accelerating goal of connecting 100M+ homes through the fixed wireless service.
• Enterprise Services Traction
  • Present in 85%+ of large enterprises in India including banks, financial services.
  • Seeing 80%+ win rate in government bids.
  • Well positioned to compete in private 5G market globally.
• Strong Subscriber Adds
  • Added 11.1 million subs in Q2, steadily growing QoQ.
  • ARPU at Rs 181.7 with improving mix and data usage.
  • Total data traffic up 29% YoY to 36.3 exabytes.
  • 5G rollout to further accelerate subscriber momentum.
• Store Network Expansion
  • Opened 471 new stores, total area 71.5 million sq ft.
  • Launched Yousta fast fashion youth format.
  • Acquired kidswear brand Ed-a-Mamma and Superdry.
  • Digital and new commerce at 19% of gross sales.
• Fashion and Lifestyle Business
  • Good growth despite festival season shift between quarters.
  • Online platform Ajio growing strongly, added 2M plus customers.
• Grocery Business
  • Strong 33% YoY growth in stores and omni-channel.
  • Pushing into non-food categories, collaborations with brands.
  • Focus on premiumization and taking regional brands national.
  • Integrating B2B grocery business with Metro Cash & Carry.
• CapEx and Market Outlook
  • CapEx expected to peak in FY24, driven by completion of the 5G rollout.
  • High visibility on growth in consumer businesses that generate high operating leverage reduces need for major near-term capex.
  • The market outlook across business segments is constructive.
  • Seeing strong oil and gas demand and prices, robust Indian fuel demand, and continued growth expected in consumer businesses.