Release Date: January 16, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Reliance Industries Ltd (WBO:RLI, Financial) reported a strong operating quarter with revenue growth of nearly 8% and EBITDA growth of close to 12%.
- The company added 3.3 million subscribers during the quarter, with significant growth in the 5G customer base, now at 170 million.
- Retail segment showed robust performance with a 17% sequential increase in EBITDA, driven by a strong festive season and customer traction.
- Reliance's digital services saw a significant boost, with non-connectivity digital revenues growing at 60% year on year.
- The oil and gas segment reported steady performance with increased production and higher price realizations, contributing significantly to India's gas economy.
Negative Points
- Despite strong performance, the oil and gas segment faced challenges with slightly lower revenues due to reduced volumes from KG D6.
- The polyester chain margins were down 12% year on year, impacted by a 47% fall in PX prices.
- The jewelry business was affected by a substantial increase in gold prices, impacting volumes.
- The company faced a mixed margin environment globally, with significant volatility due to geopolitical events and large capacity additions.
- Despite strong domestic demand, the company had to navigate a 15% fall in gasoline and a 38% fall in gas oil and ATF cracks year on year.
Q & A Highlights
Q: Can you provide an overview of Reliance Industries' financial performance for the third quarter of 2025?
A: Srikanth Venkatachari, Chief Financial Officer, reported a strong operating quarter with revenue growth close to 8% and EBITDA growth of 12%. The consumer businesses performed well, with retail up 17% sequentially and O2C up 16%. The festive season and customer traction in Jio contributed significantly to this performance.
Q: How is Reliance Jio progressing with its 5G rollout and adoption?
A: Kiran Thomas, President, highlighted that Reliance Jio's 5G services have seen steady growth, with 170 million 5G subscribers as of December 2024. The 5G network now accounts for nearly 40% of the wireless traffic, and Jio is capturing 70% of new 5G device users in the market.
Q: What are the key drivers behind Reliance Retail's strong performance this quarter?
A: Dinesh Taluja, CFO & Head of Corporate Development for Reliance Retail, noted that the retail segment achieved INR90,000 crores in revenue, driven by the festive and wedding seasons, as well as productivity improvements. The grocery business grew by 37% year-on-year, and the fashion and lifestyle segments saw a strong rebound.
Q: How did the oil and gas segment perform, and what is the outlook for the gas market?
A: Sanjay Roy, President of Exploration & Production, reported steady performance with revenue at $744 million and EBITDA margins at 87.4%. The Indian gas market remains robust, with a 10% increase in consumption in CY24, and LNG imports surged despite high prices.
Q: What strategic investments is Reliance making in the O2C segment?
A: Srikanth Venkatachari, CFO, discussed ongoing investments in high-growth domestic markets, including a 1.5 million tonne PVC facility and expansion of light feed cracking capabilities. These investments aim to capitalize on strong domestic demand and improve cost competitiveness.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
