Reliance Industries Limited · NSE:RELIANCE
Reliance Industries — Q2 2024 Earnings Presentation
56 slides from Reliance Industries's earnings presentation, Oct 27, 2023
Slide 1: 2Q FY24 Financial Results Presentation
2Q FY24 Financial Results Presentation 27 October 2023 1
Slide 2: Forward Looking Statement
Forward Looking Statement This presentation contains forward-looking statements which may be identified by their use of words like “plans,” “expects,” “will,” “anticipates,” “believes,” “intends,” “projects,” “estimates” or other words of similar meaning. All statements that address expectations or
Slide 3: Consolidated Financial Results
Consolidated Financial Results 3
Slide 4: 2Q FY24 – Consolidated Highlights
2Q FY24 – Consolidated Highlights 1. Record quarterly EBITDA at ₹ 44,867 crore (US$ 5.4 billion), up 30% YoY ✓ Robust operating performance across segments 2. Net profit at ₹ 19,878 crore (US$ 2.4 billion), up 30% YoY 3. Strong growth delivery in consumer businesses with superior experience and seam
Slide 5: 2Q FY24 – Key Segment Highlights (1/2)
2Q FY24 – Key Segment Highlights (1/2) Retail (RRVL) Digital Services (JPL) 2Q FY24 2Q FY24 US$ Mn ₹ crore % YoY US$ Mn ₹ crore % YoY Revenue 9,290 77,148 18.8% Revenue 3,798 31,537 10.6% EBITDA 701 5,820 32.2% EBITDA 1,629 13,528 12.6% No. of Stores 18,650 12.2% ARPU (Rs.) 181.7 2.6% Area (Mn. Sq.f
Slide 6: 2Q FY24 – Key Segment Highlights (2/2)
2Q FY24 – Key Segment Highlights (2/2) O2C Oil & Gas 2Q FY24 2Q FY24 US$ Mn ₹ crore % YoY US$ Mn ₹ crore % YoY Revenue 17,820 147,988 -7.3% Revenue 797 6,620 71.8% EBITDA 1,961 16,281 36.0% EBITDA 574 4,766 50.3% Prod. meant for Sale KG D6 Production (MMT) 17.1 5.6% (BCFe) 68.3 65.8% 1. Strong EBITD
Slide 7: Consolidated Financial Results : 2Q FY24
Consolidated Financial Results : 2Q FY24 2Q FY24 1. YoY revenue growth constrained by lower O2C US$ Mn ₹ crore % QoQ % YoY revenues with 14% decline in crude price Revenue 30,826 255,996 10.8% 1.2% EBITDA 5,403 44,867 6.9% 30.2% ✓ Double-digit revenue growth in consumer Finance Cost 690 5,731 -1.8%
Slide 8: EBITDA Contribution (2Q FY24 vs 2Q FY23)
EBITDA Contribution (2Q FY24 vs 2Q FY23) 1. YoY decline in middle-distillate cracks and downstream ₹ crore (YoY) deltas offset by lower SAED 1,315 44,867 1,780 ✓ Increase in gasoline and PVC margins supported 1,417 1,595 4,313 segment performance 34,447 2. Oil & Gas – EBITDA growth driven by 65.8% h
Slide 9: EBITDA Contribution (2Q FY24 vs 1Q FY24)
EBITDA Contribution (2Q FY24 vs 1Q FY24) ₹ crore (QoQ) 1. O2C – strength in fuel cracks and PVC delta, feedstock flexibility aided EBITDA growth despite SAED 350 94 44,867 680 751 1,010 2. Oil & Gas – Ramp-up of MJ field gas and condensate 41,982 production driving EBITDA 3. Retail – store expansion
Slide 10: Robust Balance Sheet
Robust Balance Sheet Sep-23 Mar-23 US$ Mn ₹ crore ₹ crore Change Gross Debt 35,606 295,687 313,966 -18,279 Cash & cash equi. 21,429 177,960 188,200 -10,240 Net Debt 14,176 117,727 125,766 -8,039 1. Strong operating cash flows largely funded capex of ₹ 38,815 crore primarily towards 5G roll-out and b
Slide 11: Digital Services
Digital Services
Slide 12: Jio’s True5G To Transform The Digital Ecosystem
Jio’s True5G To Transform The Digital Ecosystem Over 1 million 5G cells deployed pan India ~8,000 towns covered with True5G >70 million >150K 5G sites with subscribers both 700 MHz and migrated to 5G 3500 MHz bands Monthly 5G traffic crosses 1.5 Exabytes Jio alone has contributed to 85% of overall 5
Slide 13: 5G Enhances Jio’s Competitive Advantage
5G Enhances Jio’s Competitive Advantage ➢ Significant traction across Youth segment Premium devices (>Rs20K average selling with Jio True5G price) on Jio's network ➢ Share of premium devices on Jio network increasing consistently 1.9x growth in last 18 months ➢ AirFiber creates an entirely new addre
Slide 14: Jio Winning In Mobile Network Experience
Jio Winning In Mobile Network Experience Jio has emerged as the #1 Network in India, winning all nine awards for Mobile Networks in the market, including all awards for 5G networks This is a first for any service provider anywhere in the world Recognition for best-in-class customer experience 14
Slide 15: JioBharat – Strong Launch, Gaining Further Traction
JioBharat – Strong Launch, Gaining Further Traction JioBharat has gained substantial market share within the non-smartphone segment Significant share gains through MNP Video, Music streaming and UPI are key features being used by early adopters JioBharat platform is being extended to multiple SKUs t
Slide 16: AirFiber – Expands The Addressable Market
AirFiber – Expands The Addressable Market Overwhelming demand reflects India is still a supply constrained market for quality wired broadband Large proportion of demand is coming from non-fiber penetrated areas Ramp-up of equipment supply chain and feet-on-street for pan India rollout in the coming
Slide 17: Scaling Up The Enterprise Suite Of Services
Scaling Up The Enterprise Suite Of Services Presence across 85%+ large named 01 enterprises 04 1 in 4 Enterprise Customers use two or more Jio services 02 Top 20 Banks and 400+ BFSI accounts run on Jio connectivity 05 Large wins across IoT, CPaaS, Cloud and other digital solutions 03 80%+ win rate i
Slide 18: Jio’s Indigenous 5G Stack Truly Differentiated
Jio’s Indigenous 5G Stack Truly Differentiated Cloud Native 5G Core Software Defined Radios Handling 100% of 5G traffic 01 Small cells and gNodeBs, including massive MIMO 06 02 AI/ ML Driven Future Ready Network monitoring and performance Product Portfolio aligned to 3GPP management Standards 05 03
Slide 19: Quarterly Highlights
Quarterly Highlights 1 Steady growth led by subscriber traction and scale up of digital platforms ➢ JPL consolidated Revenue at Rs 26,875 crore, growth of 10.7% YoY ➢ JPL consolidated EBITDA at Rs 13,528 crore, growth of 12.6% YoY 2 Total subscriber base at 459.7 million in Q2’FY24, with acceleratio
Slide 20: 5G & FTTH Driving Service Differentiation
5G & FTTH Driving Service Differentiation Quarterly Net Subscriber Additions (million) Subscriber addition momentum continues to improve every quarter since 5G launch 11.1 Jio network has added 3 Exabytes of data 9.2 traffic for two consecutive quarters 6.4 Per capita monthly data usage increases 5.
Slide 21: RJIL: Key Operating Metrics
RJIL: Key Operating Metrics Q2’FY24 Q1’FY24 Q2’FY23 Total Customer base ➢ Strong net customer addition of 11.1 459.7 448.5 427.6 (million) million in Q2’FY24 Net Customer addition 11.1 9.2 7.7 (million) ➢ ARPU increases to Rs 181.7 in ARPU 181.7 180.5 177.2 Q2’FY24 (Rs/ month) Total Data Consumption
Slide 22: RJIL: Q2’FY24 Financials
RJIL: Q2’FY24 Financials Operating Revenue (in Rs crore) EBITDA (in Rs crore) 24,750 13,059 24,042 12,663 23,394 12,315 22,998 22,521 12,072 11,601 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 Sep-22 Dec-22 Mar-23 Jun-23 Sep-23 ➢ EBITDA margins increase to 52.8% leading to EBITDA growth of 12.6% YoY Sustained
Slide 23: Jio Platforms Limited: Q2’FY24 Financials
Jio Platforms Limited: Q2’FY24 Financials JPL Consolidated Particulars Q2’FY24 Q2’FY24 Q1’FY24 Q2’FY23 ➢ Q2’FY24 Revenue from operations at US$ mn Rs cr Rs cr Rs cr Rs 26,875 crore; 10.7% YoY growth Gross Revenue* 3,798 31,537 30,640 28,506 Operating Revenue 3,236 26,875 26,115 24,275 ➢ EBITDA incre
Slide 24: Reliance Retail
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Slide 25: 2QFY24: Key Messages (1/2)
2QFY24: Key Messages (1/2) 1. Reliance Retail continues its sustained growth journey across consumption baskets with revenue growth of 19% YoY ✓ Robust performance in Grocery business with 33% YoY growth ✓ Consumer Electronics and Fashion & Lifestyle deliver 11% and 32% YoY growth respectively 2. EB
Slide 26: 2QFY24: Key Messages (2/2)
2QFY24: Key Messages (2/2) 1. Serving customers at scale with sustained growth across operating metrics ✓ Footfalls at 260 million, up 41% YoY ✓ Registered customers at 281 million, up 27% YoY ✓ Number of transactions at 315 million, up 25% YoY 2. Momentum on new store opening continues ✓ 471 stores
Slide 27: Steady Growth in Revenue and EBITDA
Steady Growth in Revenue and EBITDA Gross Revenue EBITDA 1. Revenue crosses a milestone Rs Crores Rs Crores 77,148 5,820 of Rs 75,000 Cr this quarter 213 64,920 4,404 2. EBITDA at a new high of 118 Rs 5,820 Cr this quarter 45,426 2,913 477 5,607 3. Digital Commerce and New 4,286 Commerce contributio
Slide 28: Financial Summary
Financial Summary In Rs Crore % % Growth 2Q FY24 1Q FY24 Parameter 2Q FY24 2Q FY23 Growth (USD Mn) Q-o-Q Y-o-Y 69,948 10% Gross Revenue 9,289 77,148 64,920 19% 62,159 11% Net Revenue 8,301 68,937 57,694 19% 4,896 15% EBITDA from Operations 675 5,607 4,286 31% 7.9% +20 bps EBITDA Margin from Operatio
Slide 29: Performance Highlights – Consumer Electronics
Performance Highlights – Consumer Electronics 1. Consumer Electronics maintains growth momentum 2. Business recorded best ever August 15th Digital India sale with 23% YoY 3. New launches, category promotions & regional festivals drive AC, phones & refrigerators category growth 4. resQ continues to e
Slide 30: Performance Highlights – Fashion & Lifestyle (1/3)
Performance Highlights – Fashion & Lifestyle (1/3) Apparel and Footwear 1. Off-line business delivers robust growth despite festive period falling in current quarter 2. New format ‘Yousta’ launched, offering fast fashion at affordable prices targeted at youth segment 3. Trends launches concept store
Slide 31: Performance Highlights – Fashion & Lifestyle (2/3)
Performance Highlights – Fashion & Lifestyle (2/3) Partner Brands 1. Continue to lead premium and luxury segment with widest portfolio of brands 2. Augments kids-wear portfolio with acquisition of Ed-a-Mamma brand 3. Strengthens partnership with Superdry by acquiring IP rights for India, Sri Lanka a
Slide 32: Performance Highlights – Fashion & Lifestyle (3/3)
Performance Highlights – Fashion & Lifestyle (3/3) Lingerie 1. Flagship event ‘Grand Lingerie Festival’ delivers strong traffic across offline and online channels 2. Expansion across Reliance Retail formats continues - Blushlace, Trends, Azorte, Centro 3. Continued traction from General Trade channe
Slide 33: Performance Highlights – Grocery
Performance Highlights – Grocery 1. Grocery delivers another quarter of record performance led by Smart and Smart Bazaar 2. “Full Paisa Vasool Sale” at a new high driven by GM and HPC categories; highest single-day sale on 15th Aug 3. Collaboration with 125+ prominent brands for ‘Smart Bazaar Chaliy
Slide 34: Performance Highlights – Consumer Brands
Performance Highlights – Consumer Brands 1. Consumer brands maintains growth momentum led by beverages, general merchandize and staples 2. Focus on expanding distribution and engagement in General Trade; delivers ~4x YoY revenue growth 3. Beverages up 7x YoY; Campa continues to gain traction from tr
Slide 35: Performance Highlights – JioMart + Milkbasket
Performance Highlights – JioMart + Milkbasket 1. JioMart on a sustained growth path with robust increase in traffic and average bill value 2. Onboarded MS Dhoni as brand ambassador; ‘JioUtsav’ campaign launched ahead of festive season 3. ‘Grand Independence Sale’ saw robust growth in traffic and Gro
Slide 36: Oil & Gas
Oil & Gas 36
Slide 37: Oil and Gas Segment Performance – 2Q FY24
Oil and Gas Segment Performance – 2Q FY24 2Q FY24 US$ Mn ₹ crore % QoQ % YoY 1. Record quarterly EBITDA with commencement of gas and condensate production from MJ field Revenue 797 6,620 42.9% 71.8% EBITDA 574 4,766 18.7% 50.3% ✓ Sharp volume uplift of 66% aiding profitability EBITDA Margin (%) 72.0
Slide 38: Project Updates
Project Updates 1. KG D6 - MJ Gas & Condensate Field – HOTO completed ✓ Drilling & Completions campaign for MJ wells completed ✓ All eight wells completed, connected, and producing 2. CBM ✓ As part of production augmentation plan, additional 40 wells program commenced ✓ Production ramp-up expected f
Slide 39: KG D6 – Fueling India’s Energy Transition
KG D6 – Fueling India’s Energy Transition Average Gas Production (MMSCMD) 30 25 20 15 24.6 10 18.2 20.2 5 6.5 0 FY21 FY22 FY23 1H FY24 KG- D6 - on track to meet 30% of India’s domestic gas production 39
Slide 40: Global Gas/LNG Markets
Global Gas/LNG Markets 1. Global Gas/LNG prices remained supported by supply Historical Prices ($/mmbtu) uncertainties $/ MMBtu JKM NBP TTF HH Jul’23- Sep’23 Avg 12.55 10.65 10.71 2.66 ✓ Risk of strikes in Australia impacting ~41 MMTPA (10% 18 16 of global LNG supplies) resulted in spike in JKM leve
Slide 41: Indian Gas Market
Indian Gas Market 1. Indian gas demand growth remain resilient ✓ Infrastructure led growth from CGD and new pipeline connectivity ✓ Strong summer demand from Power sector 2. Increase in domestic gas production from KG D6 supported growth 3. Ceiling price applicable for KGD6 at ~$9.96/MMBtu for 2H FY
Slide 42: Oil to Chemicals (O2C)
Oil to Chemicals (O2C) 42
Slide 43: O2C Operating Performance
O2C Operating Performance 2Q FY24 1. Sustained YoY operating performance with US$ Mn (₹ crore) % QoQ % YoY ✓ Strength in Gasoline cracks (+47%), PVC delta (+7%) Revenue 17,820 147,988 11.2% -7.3% ✓ Strong domestic demand environment EBITDA 1,961 16,281 6.6% 36.0% EBITDA Margin 11.0% -50 bps +350 bps
Slide 44: Business Environment - Demand and Utilization Levels
Business Environment - Demand and Utilization Levels Global Oil Demand India Oil Demand 1. Global oil demand in 2Q FY24 rose by 2.5 mb/d YoY ✓ China (2.2 mb/d) and other Asia (0.5 mb/d) 102.7 mb/d 54.9 MMT 2.5 mb/d YoY 5.3% YoY ✓ Strong YoY demand for Jet (1 mb/d), gasoline (0.7 mb/d) India
Slide 45: Domestic Environment – Oil Demand
Domestic Environment – Oil Demand In MMT 1. Oil demand at 54.9 MMT, up 5.3% YoY and down 6.8% 5.7% 4.3% 13.5% QoQ 23.9 24 20.1 2. Continuing growth momentum in transportation fuels 21 19.2 18 ✓ Positive momentum in industrial and mining 15 12 activities 8.6 9.4 9.1 9 6 ✓ Healthy growth continuing in
Slide 46: Domestic Environment – Polymers and Polyester Demand
Domestic Environment – Polymers and Polyester Demand Polymer India Demand Growth YoY (2Q FY24) 1. Polymer demand up 25% YoY 40% 31% 31% ✓ Channel restocking with weak product prices; PE & PP prices 30% 25% at 2-3 year low 20% ✓ Healthy PE & PP demand led by consumer durables, 15% packaging, automoti
Slide 47: Business Environment – Polymers Deltas
Business Environment – Polymers Deltas 1. PE and PP deltas remained weak on YoY and QoQ basis with Polymer Deltas ($/MT) - 2Q FY24 subdued global demand and excess supply 500 460 ✓ YoY PE and PP deltas over naphtha down 8% and 17% 429 397 381 respectively led by sharper fall in product prices (7-10%
Slide 48: Business Environment – Polyester Chain Deltas
Business Environment – Polyester Chain Deltas Polyester Chain Deltas ($/MT) - 2Q FY24 1. Polyester chain deltas down 13% YoY with sharp decline in downstream polyester deltas 600 ✓ Slower demand recovery in China impacted ability to pass on 600 574 524 higher feedstock cost 400 2. On QoQ basis, Poly
Slide 49: Regional Business Environment – Transportation Fuels (Gasoil)
Regional Business Environment – Transportation Fuels Gasoil Gasoil (10 ppm) Cracks 1. Global gasoil demand grew by ~0.2 mb/d YoY to 28.8 mb/d. 45 600 41.1 ✓ Increased demand from Asia-Pac (540 kb/d) and ME (23 kb/d) 40 offset demand decline in Europe ( 186 kb/d), LatAm ( 100 35 543.2 kb/d), Nort
Slide 50: Regional Business Environment – Transportation Fuels (ATF/Kero)
Regional Business Environment – Transportation Fuels ATF/Kero Jet/Kero Cracks 35 32.4 111.5 113.5 115 1. Global Jet/kero demand rose ~1.05 mb/d YoY to 7.5 mb/d 30 26.1 ✓ Higher demand from Asia-Pac (725 kb/d), North America 105 25 and Europe 100 kb/d each Mn. bbls 102.4 20 $/bbl 95 15 14 2. YoY cr
Slide 51: Regional Business Environment – Transportation Fuels (Gasoline)
Regional Business Environment – Transportation Fuels Gasoline Gasoline 92R Cracks 1. Global gasoline demand rose ~0.75 mb/d YoY to 27.1 mb/d with incremental demand from Asia-Pac (550 kb/d), North America (135 kb/d) and Europe (85 kb/d) 15 460 13.1 12.1 2. YoY gasoline cracks improved due to 440.
Slide 52: O2C Operating Performance
O2C Operating Performance 1. Arbitrage feedstock sourcing preferred over regional crudes, 2Q FY24 1Q FY24 Feedstock feedstock (Vol in MMT) Throughput 20.0 19.7 2. Alkylate and high RON gasoline export maximized with improved premiums Production meant for sale 3. Middle distillate product placement o
Slide 53: O2C Business Perspectives
O2C Business Perspectives 1. Global oil demand growth expected to remain strong led by transportation fuels ✓ 2023 demand to average at 101.8 mb/d, up 2.2 mb/d, and 2024 demand at 102.7 mb/d, up 0.9 mb/d ✓ Tight refining system to keep margins well above mid-cycle levels ✓ Planned and unplanned refi
Slide 54: Summary
Summary 54
Slide 55: Summary
Summary 1. Strong consolidated earnings delivery with robust operational performance 2. Net debt lower with capital raise and strong operating cashflows ✓ Capex largely funded by robust cash generation 3. Capex to peak in FY24 with completion of fast-track pan-India roll-out of 5G network by year-en
Slide 56: Thank You
Thank You 56