Key highlights from Reliance Industries Limited (RELIANCE) Q3 FY24 Earnings Concall
- Financial Performance
- Consolidated EBITDA at INR 44,700 crores, up 17% year-on-year.
- Net profit at INR 19,641 crores, up 11% year-on-year.
- Growth led by strong performance in Retail and Oil and Gas businesses.
- Digital Services steady with 1% increase in O2C.
- Resilient O2C performance despite major planned maintenance shutdown and weak downstream margin environment.
- Retail Growth
- Revenue up 23% and EBITDA up 31% demonstrating operating leverage.
- 21% higher area operated at nearly 73 million square feet.
- 40% higher footfalls and addition of 252 stores, totaling 1,549 store adds over past year.
- Fast growth of Digital and New Commerce at 19% of total revenues.
- Broad-based growth seen across Grocery, Fashion & Lifestyle and Consumer Electronics.
- Oil and Gas Production
- Best ever quarterly EBITDA of INR 5,804 crores in Oil and Gas business.
- KGD6 production up 73%, now at 30 MMSCMD.
- KGD6 contributes 30% of India’s gas production.
- Higher KGD6 production driving 50% increase in Oil and Gas revenue and EBITDA.
- 5G Network Rollout
- Completed true 5G network rollout across India ahead of schedule.
- 90 million subscribers have migrated to 5G network.
- 5G availability 3x and download speeds 2x of nearest competitor.
- Subscriber growth at 7.5% vs industry flat at 0.7% showing 5G driving growth.
- Net port-ins 2.5x of competitor.
- Subscriber Base Growth
- Added 11.2 million net new customers this quarter and 38 million for the year.
- Total subscriber base reached 471 million.
- 5% increase in data usage year-over-year driven by 5G rollout.
- Rural subscriber growth now 5.5x of nearest competitor after JioBharat launch.
- JioBharat gaining 45% market share in sub-INR 1,000 price segment since launch.
- 60% of UPI transactions from low-end handsets coming from JioBharat users.
- JioBharat Performance
- Accelerating migration from 2G to 4G with JioBharat device.
- Priced similarly or cheaper than 2G phones to target captive 2G base.
- Seeing strong engagement metrics like live TV and UPI payments from users.
- Driving 5.5x higher rural subscriber additions relative to competitors.
- Enterprise Business Growth
- Over 80% of large enterprises now Jio customers.
- 33% of large enterprises using 2+ Jio services beyond just connectivity.
- 50% higher number of accounts contributing over INR 5 crores in revenues.
- Non-network services driving 20% of recent deal wins highlighting growth of digital services.
- New Digital Services
- Showcased new solutions in cloud compute, satellite connectivity, gaming, health care and more.
- Cloud gaming to expand gaming market by removing need for expensive consoles.
- Private 5G allows large campuses to have dedicated 5G installation.
- Managed services to provide advisory, implementation and management of digital services.
- JioAirFiber Expansion
- Rapidly expanding JioAirFiber across India by leveraging 5G network.
- Seeing encouraging customer engagement and usage levels early on.
- Per capita usage around 30x higher than even for wireline fiber services.
- Grocery Business Growth
- Record footfalls and highest ever single day sale during festival season.
- Growing non-food categories to improve margins.
- Adding more categories to become one-stop destination.
- Fashion Initiatives
- Azorte, Yousta and Swadesh formats showing strong response and scaling up.
- AJIO added 1.6 million new customers and grew option count by 38%.
- Launched niche site Ajio Luxe and AjioGram for D2C brands.
- Outlook
- Gas prices pulled back slightly due to lower ceiling price and weak global demand.
- Milder winter in Europe resulting in higher inventories and lower LNG demand.
- Short term prices to depend on winter severity, some positive signs in China and Southeast Asia demand.
- Growth expectations to moderate from the high 30% levels seen in recent quarters.
- Seeing revenue growth and margin expansion across Jio, Retail and O2C.
- Strong domestic consumer and energy demand outlook.