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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.
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