Reliance Industries Limited · NSE:RELIANCE
Reliance Industries — Q1 2024 Earnings Presentation
58 slides from Reliance Industries's earnings presentation, Jul 21, 2023
Slide 1: 1Q FY24 Financial Results Presentation
1Q FY24 Financial Results Presentation 21 July 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: 1Q FY24 – Consolidated Highlights
1Q FY24 – Consolidated Highlights 1. EBITDA at ₹ 41,982 crore, up 5.1% YoY Financial ✓ Exceptional 1Q FY23 as Russia-Ukraine conflict drove refining margins to historic highs Performance 2. Strong contribution from consumer and upstream businesses offset decline in O2C 3. Net profit at ₹ 18,258 cror
Slide 5: 1Q FY24 – Key Segment Highlights (1/2)
1Q FY24 – Key Segment Highlights (1/2) 1. Revenue up 19.5% YoY; EBITDA up 33.8% YoY Retail 2. Total store count at 18,446, added 555 stores in 1Q FY24 3. Record 249 Mn footfalls (+42% YoY); Registered customers at 267 Mn (+28% YoY) Revenue ₹ 69,962 crore 4. Digital Commerce and New Commerce at 18% o
Slide 6: 1Q FY24 – Key Segment Highlights (2/2)
1Q FY24 – Key Segment Highlights (2/2) 1. Revenue down 18% YoY; EBITDA down 23% YoY O2C ✓ Exceptionally strong year-ago quarter with dislocation in energy markets ✓ Strong global demand keep fuel cracks above mid-cycle levels Revenue ₹ 133,031 crore ✓ Downstream chemical margins muted with supply ov
Slide 7: Consolidated Financial Results : 1Q FY24
Consolidated Financial Results : 1Q FY24 Change Change 1. YoY resilient operating performance (₹ crore) 1Q FY24 QoQ YoY ✓ Strong growth in consumer businesses Revenue; Revenue 231,132 -3.3% -4.7% O2C lower with 31% decline in crude price EBITDA 41,982 1.8% 5.1% ✓ EBITDA growth led by ongoing tractio
Slide 8: EBITDA Bridge (1Q FY24 vs 1Q FY23)
EBITDA Bridge (1Q FY24 vs 1Q FY23) 1. O2C segment impacted by sharp fall in fuel cracks 1Q FY24 vs 1Q FY23 - ₹ crore (YoY) from historic highs in previous year 2,070 41,982 2. Strong incremental contribution from Oil & Gas 39,935 segment on higher volumes and realizations 4,617 2,014 1,302 3. Retail
Slide 9: EBITDA Bridge (1Q FY24 vs 4Q FY23)
EBITDA Bridge (1Q FY24 vs 4Q FY23) 1Q FY24 vs 4Q FY23 - ₹ crore (YoY) 1. O2C impacted by lower fuel cracks and PVC delta, partially offset by improved PE, PP, Polyester chain delta 979 41,982 2. Oil & Gas – EBITDA reflecting marginally higher production 41,252 1,022 333 3. Retail segment benefited w
Slide 10: Robust Balance Sheet
Robust Balance Sheet (₹ crore) Jun-23 Mar-23 Change Gross Debt 318,685 313,966 4,719 Cash & cash equi. 192,064 188,200 3,864 Net Debt 126,621 125,766 855 1. Restated net debt for Mar’23 reflects transfer of cash and liquid investments to JFSL 2. QoQ net debt up marginally despite accelerated capex i
Slide 11: Digital Services
Digital Services
Slide 12: Jio Is Leading Industry Transition Towards 5G
Jio Is Leading Industry Transition Towards 5G Over 115,000 5G sites deployed with ~690,000 5G cells Pan India Rollout Before Dec’23 5G Rollout significantly ahead of Plan ~65% scope > 90% of Census executed Towns covered On track to complete the fastest 5G rollout globally 12
Slide 13: Network Leadership Accelerates Customer Acquisition
Network Leadership Accelerates Customer Acquisition Continued increase in net adds Net Subscriber Additions (million) 9.2 Net additions in Q1FY24 was 1.7x of two quarters ago 6.4 5.3 Superior network on 5G/4G driving better customer retention and net port-ins Dec'22 Mar'23 Jun'23 5G driven customer
Slide 14: Jio Continues To Be The Operator Of Choice
Jio Continues To Be The Operator Of Choice ➢ As per TRAI reported industry data, Jio YoY Subscriber Growth (%)* subscriber base has grown 6.8% YoY at 6.8% the end of April 2023 ➢ During the same time period, rest of the 0.0% industry has witnessed a 3.7% decline in subscriber base -3.7% ➢ In Q1FY24,
Slide 15: Jio Bharat – An Innovative Device Platform
Jio Bharat – An Innovative Device Platform ➢ Jio Bharat to enable existing 250 million feature phone users with internet-enabled phones ➢ Jio Bharat platform leverages device and network capabilities to deliver internet-enabled services on entry- level phones ➢ At only Rs. 999, the lowest entry pric
Slide 16: JioFiber – Strong Subscriber Momentum Continues
JioFiber – Strong Subscriber Momentum Continues ➢ JioFiber drives 80% of wired broadband net adds in the country ➢ New tariff plans and superior product offerings led to ~50% YoY growth in subs base ➢ 98% of new Acquisitions are Postpaid ➢ LCO Partner program live in 1,000+ towns ➢ High engagement d
Slide 17: AirFiber – Priming For Launch
AirFiber – Priming For Launch Delivering Fiber like experience in pilots paving way to accelerate home acquisition Connectivity performance and reliability enhanced by: ➢ Network RAN Slicing to provide dedicated slice for AirFiber ➢ New WiFi-6 Home Gateway to provide better speed and coverage Entert
Slide 18: JPL Powered Tech Stack Breaks World Records
JPL Powered Tech Stack Breaks World Records 17Bn 32Mn Streams served Peak Concurrency 157Bn+ Minutes watched Live Streaming in 12 Indian Languages Jio’s Technology delivers record breaking glitch-free streaming 18
Slide 19: JioCinema – Technology Innovations During IPL 2023
JioCinema – Technology Innovations During IPL 2023 Glass to Glass 8K Production Multi-cam feed Solution Option to select from Stream 4K video and 8K VR Delivering experience which multiple feeds - dugout, feed over multiple devices is significantly faster than spidercam, jimmy jibs DTH Jio Ads VR/ 3
Slide 20: JioThings – Industry Leading IoT Platform
JioThings – Industry Leading IoT Platform ➢ OEM qualified enterprise focused platform with AI/ML algorithms ➢ Edge intelligence, backed with cloud platforms and nation-wide installation and aftermarket support Smart Assets ➢ Utility in a Box that connects the complete ecosystem of grids, consumers a
Slide 21: Quarterly Highlights
Quarterly Highlights 1 Stellar operating performance driving strong financial results ➢ JPL consolidated Revenue at Rs 26,115 Cr, growth of 11.3% YoY ➢ JPL consolidated EBITDA at Rs 13,116 Cr, growth of 14.8% YoY 2 Sustained subscriber growth with total base of 448.5 million as of June 2023 ➢ Networ
Slide 22: Data Traffic Shows Significant Scale-up
Data Traffic Shows Significant Scale-up Monthly data traffic crossed 11 Exabytes Incremental Data Traffic (Crore GBs) 293 5G adoption and FTTH ramp-up drives strong growth in data usage, uptrend to continue 133 75 Per capita monthly data usage increases 20% YoY to 24.9 GB Dec'22 Mar'23 Jun'23 Jio’s
Slide 23: RJIL: Key Operating Metrics
RJIL: Key Operating Metrics 1Q’ 23-24 4Q’ 22-23 1Q’ 22-23 Total Customer base ➢ Healthy net customer addition of 9.2 448.5 439.3 419.9 (million) million in Q1FY’24 Net Customer addition 9.2 6.4 9.7 (million) ➢ ARPU continues to expand to ARPU Rs 180.5 in Q1FY24 180.5 178.8 175.7 (Rs/ month) Total Da
Slide 24: RJIL: Q1FY24 Financials
RJIL: Q1FY24 Financials Operating Revenue (in Rs crore) EBITDA (in Rs crore) 24,042 12,663 23,394 12,315 22,998 12,072 22,521 11,601 21,873 11,046 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 ➢ EBITDA margins increase to 52.7% leading to EBITDA growth of 14.6% YoY Steady gro
Slide 25: Jio Platforms Limited: Q1FY24 Financials
Jio Platforms Limited: Q1FY24 Financials JPL Consolidated 1Q’ 23-24 4Q’ 22-23 1Q’ 22-23 ➢ Operating revenue growth at 11.3% Gross Revenue* 30,640 29,871 27,527 YoY driven by consistent subscriber Operating Revenue 26,115 25,465 23,467 additions and ARPU increase EBITDA 13,116 12,767 11,424 EBITDA Ma
Slide 26: Reliance Retail
Reliance Retail 26
Slide 27: 1Q FY24: Key Messages (1/2)
1Q FY24: Key Messages (1/2) 1. Reliance Retail continues its sustained growth journey across consumption baskets with revenue growth of 19% YoY ✓ Sustained performance in Grocery business with 59% YoY growth ✓ Consumer Electronics (excl. Devices) and Fashion & Lifestyle deliver 14% and 15% YoY growt
Slide 28: 1Q FY24: Key Messages (2/2)
1Q FY24: Key Messages (2/2) 1. Serving customers at scale with sustained growth across operating metrics ✓ Footfalls at 249 million, up 42% YoY ✓ Registered customers at 267 million, up 28% YoY ✓ Number of transactions at 314 million, up 43% YoY 2. Momentum on new store opening continues ✓ 555 store
Slide 29: Steady Growth in Revenue and EBITDA
Steady Growth in Revenue and EBITDA 1. Revenue and EBITDA growth Gross Revenue EBITDA in tandem with continued Rs Crores Rs Crores investments in infrastructure 69,948 5,139 and capabilities to enhance 58,554 243 customer value proposition 3,837 38,547 2. EBITDA crosses milestone of 1,941 4,896 551
Slide 30: Financial Summary
Financial Summary In Rs Crore % Growth % Growth 4Q FY23 Parameter 1Q FY24 1Q FY23 Q-o-Q Y-o-Y 69,267 1% Gross Revenue 69,948 58,554 19% 61,559 1% Net Revenue 62,159 51,582 21% 4,769 3% EBITDA from Operations 4,896 3,897 26% 7.7% +20 bps EBITDA Margin from Operations (%) 7.9% 7.6% +30 bps 145 68% Inv
Slide 31: Performance Highlights – Consumer Electronics
Performance Highlights – Consumer Electronics 1. Consumer Electronics business maintains growth momentum led by improved conversions and ABV* 2. Category-led promotions (Chill-Fest for AC, Boot-Up for laptop, IPL for TV) and regional festivities drive consumer engagement 3. Broad based growth across
Slide 32: Performance Highlights – Fashion & Lifestyle (1/3)
Performance Highlights – Fashion & Lifestyle (1/3) Apparel and Footwear 1. Off-line business continues to do well driven by pick-up in store traffic and average bill value 2. New businesses continue to scale up; Azorte, Avantra, Kalanikethan, Centro and Portico do well 3. Curation of assortment to s
Slide 33: 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. Launches Pret-a-Manger, the iconic British chain, known for its coffee, salads, sandwiches and more 3. Ajio Luxe delivers strong performance; options up
Slide 34: Performance Highlights – Fashion & Lifestyle (3/3)
Performance Highlights – Fashion & Lifestyle (3/3) Lingerie 1. Steady performance across brand portfolio - Amante, Clovia outperform 2. Successful execution of ‘Super Powered Lingerie Sale’ and other promotion events drive customer connect 3. Strengthens product portfolio through new launches- Athle
Slide 35: Performance Highlights – Grocery
Performance Highlights – Grocery 1. Grocery delivers another quarter of record performance led by Smart and Smart Bazaar formats 2. Successful execution of ‘Public Holiday Sales’ event and regional promotions (Bihu, Eid, Poila Baisakh) drives growth in footfall and orders 3. Non-food continues to gr
Slide 36: Performance Highlights – Consumer Brands
Performance Highlights – Consumer Brands 1. Consumer brands maintains its growth trajectory; all categories perform well 2. Focus on expanding distribution and engagement in General Trade channel; delivers 8x YoY revenue growth 3. Beverages up 11x YoY; Campa Cola gains traction across the country 4.
Slide 37: 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. Continued focus on catalogue expansion; option count up ~6x YoY; seller base up ~4x YoY 3. JioMart builds a new marketing property – ‘Grand Shopping Carnival’
Slide 38: Oil & Gas
Oil & Gas Reliance Industries Limited
Slide 39: Oil and Gas Segment Performance – 1Q FY24
Oil and Gas Segment Performance – 1Q FY24 Change Change 1. YoY EBITDA up 47% led by higher Gas production (in ₹ Crore) 1Q FY24 QoQ YoY and improved realization for KG D6 Revenue 4,632 1.7% 27.8% 2. Gas and condensate production commenced from EBITDA 4,015 5.6% 46.7% MJ field EBITDA Margin (%) 86.7%
Slide 40: KG D6 - Gas Production Ramp-up
KG D6 - Gas Production Ramp-up Average Gas Production (MMSCMD) 35 30 To reach 25 30 MMSCMD in 20 coming months 15 10 18.2 20.2 20.9 5 0 FY22 FY23 1Q FY24 1. KG D6 Block production is expected to increase by 50% from FY23 levels MJ FPSO Hookup & Field Installation Pictures With incremental production
Slide 41: KG D6 - Gas Marketing
KG D6 - Gas Marketing 1. Completed two e-auctions for sale of 6 MMSCMD and 5 MMSCMD gas from KG D6 ✓ Entire volume was sold, and Gas Sale Purchase Agreements (GSPA) executed with ~45 customers across CGD, Fertilizer, Refinery etc. ✓ Till date marketed 29 MMSCMD of KG D6 gas ✓ Price discovery of JKM
Slide 42: Global Gas/LNG Outlook
Global Gas/LNG Outlook Historical Prices ($/mmbtu) 1. Global Gas/LNG prices cooled off to pre-war levels 20 $/ MMBtu JKM NBP TTF HH ✓ EU reduced demand by ~20% against the target of 15% under 15 Apr’23 - Jun’23 Avg 11.08 10.45 11.24 2.33 the ‘save gas for safe winter’ - policy extended until Mar’24
Slide 43: Oil to Chemicals (O2C)
Oil to Chemicals (O2C) 43
Slide 44: Macro Context
Macro Context 1. 1Q FY23 saw once in a generation dislocation of energy markets, driving historic high fuel margins 2. China demand growth for downstream chemicals slower than expected post reopening, impacting regional trade flows ✓ Lifting of restriction in China driving strong fuel demand growth,
Slide 45: O2C Operating Performance
O2C Operating Performance change change 1. YoY EBITDA lower by 23.2% (in ₹ Crore) 1Q FY24 QoQ YoY ✓ 60-70% decline in fuel cracks from exceptionally high Revenue 133,031 3.4% -17.7% levels in previous year EBITDA 15,271 -6.3% -23.2% ✓ Polymer deltas declined in well-supplied market EBITDA Margin (%)
Slide 46: Business Environment - Demand and Utilization Levels
Business Environment - Demand and Utilization Levels 1. Global oil demand in 1Q FY24 rose by 2.8 mb/d YoY Global Oil Demand India Oil Demand ✓ China reopening led global demand recovery (2.3 mb/d) 101.4 mb/d 58.1 MMT ✓ Sharp recovery in ATF and Gasoline demand with 2.8 mb/d YoY 4.9% YoY increas
Slide 47: Domestic Environment – Oil Demand
Domestic Environment – Oil Demand In MMT Domestic Oil Demand 1. Oil demand at 58.1 MMT, up 4.9% YoY and down 0.5% QoQ 23.9 24 22.2 22.0 2. Petrol demand up 6.8% YoY supported by strong holiday 20 travel season and improving infrastructure 16 3. HSD demand up 8.1% YoY 12 ✓ Resilient farm sector deman
Slide 48: Domestic Environment – Polymers and Polyester Demand
Domestic Environment – Polymers and Polyester Demand Polymer India Demand Growth YoY (1Q FY24) 1. Polymer demand up 16% YoY 30% 29% ✓ PE demand up 29% led by growth in pipes, FMCG, 20% 16% pharma and e-commerce food packaging 7% 9% 10% ✓ PP and PVC demand up with boost in consumer durables, 0% PE PP
Slide 49: Business Environment – Polymers Deltas
Business Environment – Polymers Deltas 1. YoY Polymer deltas down with subdued global demand and new supplies Polymer Deltas ($/MT) with China’s bid for self-sufficiency 750 576 ✓ PVC delta down 35% with normalized supplies from US and China; PVC 600 482 prices also corrected by 40% 450 415 397 421
Slide 50: Business Environment – Polyester Chain Deltas
Business Environment – Polyester Chain Deltas 1. YoY polyester chain delta down 3% in well-supplied downstream Polyester Chain Deltas ($/MT) -1Q FY24 market 650 ✓ Downstream polyester margins declined due to weak global 593 600 574 demand and slower recovery in China 550 516 2. QoQ polyester chain d
Slide 51: Regional Business Environment – Gasoil
Regional Business Environment – Gasoil 1. Global gasoil demand up ~0.3 mb/d QoQ to 28.4 mb/d Singapore Gasoil (10 ppm) Cracks 60 51.6 ✓ Higher demand growth from Asia (550 kb/d), Middle 50 533.9 540 East (33 kb/d) offset falling demand in West 40 532.7 2. Gasoil cracks declined QoQ, due to Mn bbls
Slide 52: Regional Business Environment – Jet/Kero
Regional Business Environment – Jet/Kero Singapore Jet/Kero Cracks 1. Global Jet/kero demand rose ~ 0.33 mb/d Q-o-Q to 7.2 mb/d, 45 115 40 39.2 with incremental demand mainly from China (190 kb/d) and 35 US (140 kb/d) $/bbl 30 107.1 Mn. bbls 26.5 104.2 25 105 ✓ Jet fuel cracks moderating inline wi
Slide 53: Regional Business Environment – Gasoline
Regional Business Environment – Gasoline Singapore Gasoline 92R Cracks 1. Global gasoline demand rose by ~0.9 mb/d QoQ to 26.8 mb/d with strong demand growth from US ( 0.42 mb/d) and 35 460 China ( 0.24 mb/d) 29.8 30 445.8 454.3 25 2. Gasoline cracks moderated Q-o-Q despite strong demand 442.9 Mn
Slide 54: O2C Operating Performance
O2C Operating Performance Feedstock 1Q FY24 4Q FY23 1. Cyclone Biparjoy impact was minimized by depleting inventory (Vol in MMT) 2. Planned FCC feed hydrotreater shutdown and Dahej Cracker Throughput 19.7 19.8 shutdown were completed during the quarter Production meant for sale 1Q FY24 4Q FY23 3. Ar
Slide 55: O2C Business Dynamics
O2C Business Dynamics 1. Oil demand estimated to average 102.1 mb/d in 2023, up 2.2 mb/d YoY despite macro headwinds - China to account for 70% of total demand growth in 2023 Demand 2. Summer driving season in major markets with increased tourism to keep oil demand higher 3. Recovery in China’s inte
Slide 56: Summary
Summary 56
Slide 57: Summary
Summary 1. Healthy net subscriber additions and improving operational metrics in Jio 2. Retail growth led by expanded footprint and strong traction in digital commerce 1. Resilient O2C performance amid volatile energy markets and global macro headwinds 2. Despite decline in product margins, optimize
Slide 58: Thank You
Thank You 58