Q2 Trust Results: Mukesh Ambani -led Reliance Industries Ltd (RIL) on Tuesday reported its financial results for the second quarter of FY25, recording a net profit of Rs 16,563 crore, down 4.77 per cent from Rs 17,394 crore reported in the period of the previous year. This result was closely aligned with analyst expectations of Rs 16,561 crore, according to LSEG data.
The company’s operating income remained stable at Rs 2.32 lakh crore year-on-year. The oil and telecom conglomerate’s consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) margin stands at 16.9 per cent in Q2FY25, up from 17.7 per cent in the second quarter of fiscal year 24.
Revenue from Reliance’s oil-to-chemicals (O2C) operations rose about 5 per cent year-on-year to Rs 1.56 lakh crore, a notable decline from the 18 per cent growth seen in the previous quarter. The decline in profitability can be attributed to a significant 31 percent drop in margins at Asian refiners this year, driven by lower demand for petroleum products and an increase in refining output, which increased supplies of gasoline and diesel. .
Reliance said in its statement that an “unfavorable balance between supply and demand” led to a sharp 50 per cent decline in transportation fuel cracks and continued weakness in chemical prices. The Jamnagar complex, which houses two refining plants with a combined capacity of about 1.4 million barrels per day, remains central to Reliance’s O2C operations and is a key profit driver for the company.
Despite its diversification into sectors such as retail, telecom and green energy, Reliance’s O2C operations account for two-thirds of its total revenue.
By contrast, the company’s telecom division, Reliance Jio Infocomm, reported a 23 percent rise in profits, largely due to its first tariff hike in more than two years, which raised average revenue per user. (a key metric for telecom companies) at 7.4. percent to Rs 195.1. However, Jio’s subscriber base fell 2.2 per cent sequentially to 478.8 million, as analysts suggested some users switched to cheaper operators in response to the tariff hike. Jio’s operating income rose 14.5 per cent to Rs 28,338 crore.
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