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.