Reliance Industries Limited · NSE:RELIANCE
Reliance Industries — Q4 2024 Earnings Presentation
59 slides from Reliance Industries's earnings presentation, Apr 22, 2024
Slide 1: Financial Results Presentation – FY 2023-24 / 4Q FY24
Financial Results Presentation – FY 2023-24 / 4Q FY24 22 April 2024 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 FY 2023-24
Consolidated Financial Results FY 2023-24 3
Slide 4: FY 2023-24 – A Year of Milestones
FY 2023-24 – A Year of Milestones RIL RIL RIL Consolidated EBITDA crosses Consolidated PBT crosses Market Cap crosses ₹175,000 crore mark ₹100,000 crore mark ₹20,00,000 crore mark JPL JPL Digital Services Revenue crosses Net Profit crosses Completion of world’s fastest ₹100,000 crore mark ₹20,000 cr
Slide 5: FY 2023-24 – Consolidated Highlights
FY 2023-24 – Consolidated Highlights 1. Consolidated EBITDA at ₹ 178,677 crore (US$ 21.4 billion), up 16.1% YoY ✓ Net profit at ₹ 79,020 crore (US$ 9.5 billion), up 7.3% YoY 2. Consumer businesses EBITDA at ₹ 79,779 crore (US$ 9.6 billion), up 16.9% YoY, 5-year CAGR at ~30% ✓ Strong growth in Retail
Slide 6: FY 2023-24 – Key Segment Highlights (1/2)
FY 2023-24 – Key Segment Highlights (1/2) Retail (RRVL) Digital Services (JPL) US$ Mn ₹ crore % YoY US$ Mn ₹ crore % YoY Revenue 36,783 306,786 17.8% Revenue 15,409 128,521 11.7% EBITDA 2,762 23,040 28.5% EBITDA 6,589 54,959 12.8% No. of Stores 18,836 4.4% ARPU (₹ ) 181.7 1.6% Area Operated (Mn. Sq.
Slide 7: FY 2023-24 – Key Segment Highlights (2/2)
FY 2023-24 – Key Segment Highlights (2/2) O2C Oil & Gas US$ Mn ₹ crore % YoY US$ Mn ₹ crore % YoY Revenue 67,712 564,749 -5.0% Revenue 2,930 24,439 48.0% EBITDA 7,481 62,393 0.5% EBITDA 2,421 20,191 48.6% Prod. meant for Sale (MMT) 67.8 2.1% KG D6 Production (BCFe) 260.3 56.8% 1. Globally weak margi
Slide 8: Consolidated Financial Results: FY 2023-24
Consolidated Financial Results : FY 2023-24 (in ₹ crore) US$ Mn FY24 FY23 % YoY 1. Revenue growth led by continued momentum in Revenue 119,912 1,000,122 974,864 2.6% consumer businesses EBITDA 21,423 178,677 153,920 16.1% ✓ O2C revenues impacted by 13.5% decline in Finance Cost 2,772 23,118 19,571 1
Slide 9: EBITDA Contribution (FY24 vs FY23)
EBITDA Contribution (FY24 vs FY23) FY24 vs FY23 (₹ crore) 1. O2C – Optimized feedstock sourcing and strong domestic markets providing resilience 6,318 178,677 2. Oil & Gas – Sharp 56.8% growth in volume helped 6,411 deliver 48.6% increase in EBITDA 5,108 6,602 3. Retail – broad-based revenue growth
Slide 10: Consolidated Financial Results 4Q FY24
Consolidated Financial Results 4Q FY24 10
Slide 11: Consolidated Financial Results: 4Q FY24
Consolidated Financial Results : 4Q FY24 US$ Mn ₹ crore % QoQ % YoY 1. YoY increase in Revenue led by low double-digit Revenue 31,753 264,834 6.7% 10.8% growth in consumer and O2C business EBITDA 5,653 47,150 5.5% 14.3% Finance Cost 691 5,761 -0.5% -1.0% 2. Continuing momentum in consumer businesses
Slide 12: EBITDA Contribution (4Q FY24 vs 4Q FY23)
EBITDA Contribution (4Q FY24 vs 4Q FY23) 4Q FY24 vs 4Q FY23 (₹ crore) 1. O2C – EBITDA at ₹ 16,777 crore, up 3% YoY ✓ Feedstock flexibility and sourcing supported positive performance in tough market environment 1,449 47,150 1,256 904 2. Oil & Gas – EBITDA at ₹ 5,606 crore, up 47.5% YoY 1,805 484 ✓ H
Slide 13: EBITDA Contribution (4Q FY24 vs 3Q FY24)
EBITDA Contribution (4Q FY24 vs 3Q FY24) 4Q FY24 vs 3Q FY24 (₹ crore) 1. Higher utilization and improved refining economics supported O2C performance 2,713 198 442 383 16 47,150 ✓ All units fully operational post M&I turnaround ✓ Weak downstream margins constrained profitability 44,678 2. Oil & Gas
Slide 14: Robust Balance Sheet
Robust Balance Sheet Mar-24 Mar-23 Change US$ Mn ₹ crore ₹ crore ₹ crore Gross Debt 38,921 324,622 313,966 10,656 Cash & cash equi. 24,979 208,341 188,200 20,141 Net Debt 13,942 116,281 125,766 -9,485 1. Decline in Net Debt with moderation in capex post 5G roll-out ✓ Capex for the year at ₹ 131,769
Slide 15: Digital Services
Digital Services
Slide 16: Jio's Differentiated True5G Sees Rapid Adoption
Jio’s Differentiated True5G Sees Rapid Adoption Global State of 5G India amongst few countries with full 5G rollout ~108 million 5G network now subscribers migrated accounts for ~28% of to 5G mobility data traffic Superior customer experience Ookla rates Jio 5G the best network in terms of availabil
Slide 17: Jio Continues To Gain Subscriber Share
Jio Continues To Gain Subscriber Share Jio strengthens its market leadership with Subscriber Market Share (%) highest subscriber market share gain in the 9.6 9.3 8.8 8.3 8.0 8.0 industry – ~300bps increase since Dec’22 20.7 20.1 19.8 19.3 18.9 21.1 Jio’s gains have been broad based across all circle
Slide 18: Jio True5G Customer Base Lights Up India
Jio True5G Customer Base Lights Up India 18
Slide 19: JioAirFiber Is Accelerating Home Connects
JioAirFiber Is Accelerating Home Connects Jio AirFiber is now available across 5,900 towns in the country AirFiber is seeing healthy demand in Tier2 towns and beyond which has driven highest ever home connects Content bundling is driving strong engagement with per capita monthly usage of ~400 GB Exp
Slide 20: Cohort Specific Propositions To Drive SMB Business
Cohort Specific Propositions To Drive SMB Business Jio Products In-room entertainment with Guest Wi- Connectivity with cloud-based Connectivity Fi driven by JHES platform and security and surveillance AirFiber solutions Hotels Manufacturing Managed Wi-Fi Jio Hospitality Entertainment Solution Digita
Slide 21: Quarterly Highlights
Quarterly Highlights 1 Robust financial performance by Jio Platforms Limited ➢ Consolidated Revenue was Rs 109,558 crore, growth of 11.7% YoY in FY24 ➢ Consolidated EBITDA at Rs 54,959 crore, growth of 12.8% YoY in FY24 ➢ In Q4FY24, consolidated Revenue and EBITDA were Rs 28,871 crore and Rs 14,360
Slide 22: Data Traffic Continues To Grow Substantially
Data Traffic Continues To Grow Substantially 2.4x increase in annual data traffic over the past three years Total Data Traffic (Billion GBs) 148 5G rollout and ramp-up of homes connect have 113 driven industry-leading data traffic growth in 91 FY24 62 Per capita monthly data usage has increased to 2
Slide 23: RJIL: Key Operating Metrics
RJIL: Key Operating Metrics Q4’FY24 Q3’FY24 Q4’FY23 Total Customer base ➢ Strong net customer addition of 10.9 481.8 470.9 439.3 (million) million in Q4’FY24 Net Customer addition 10.9 11.2 6.4 (million) ➢ ARPU at Rs 181.7 in Q4’FY24 ARPU 181.7 181.7 178.8 (Rs/ month) ➢ Robust growth in data consump
Slide 24: RJIL: Q4'FY24 Financials
RJIL: Q4’FY24 Financials Operating Revenue (in Rs crore) EBITDA (in Rs crore) 25,959 13,734 25,368 13,422 24,750 13,059 24,042 23,394 12,663 12,315 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 ➢ RJIL Operating Revenue growth of 11.0% YoY driven by industry leading subscriber
Slide 25: RJIL: FY24 Financials
RJIL: FY24 Financials Operating Revenue (in Rs crore) EBITDA (in Rs crore) 52,878 100,119 47,034 90,786 76,977 37,857 69,888 31,461 FY21 FY22 FY23 FY24 FY21 FY22 FY23 FY24 ➢ RJIL revenue up 10.3% YoY ➢ EBITDA growth of 12.4% YoY led by higher revenues and ~100bps increase in margins Connectivity pla
Slide 26: Jio Platforms Limited: Key Financials
Jio Platforms Limited: Key Financials JPL Consolidated ➢ FY24 Revenue and EBITDA growth of Particulars Q4 Q3 Q4 FY24 FY24 FY23 FY24 FY23 11.7% and 12.8% YoY, respectively with Gross Revenue* 33,835 32,510 29,871 1,28,521 1,15,099 EBITDA margins of 50.2%. Operating Revenue 28,871 27,697 25,465 1,09,5
Slide 27: Reliance Retail
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Slide 28: Performance Highlights
Performance Highlights 1. Revenue crossed Rs. 3 lakh crore in FY24, a significant milestone in the journey of Reliance Retail 2. Revenue for Q4 FY24 grew 11% YoY, led by Consumer Electronics and Fashion & Lifestyle consumption baskets 3. Reported EBITDA crossed Rs. 23,000 crore in FY24, grew by 29%
Slide 29: Financial Performance
Financial Performance In Rs. crore % % Q4 FY24 Q4 FY23 Change Parameter FY24 FY23 Change YoY YoY 76,627 69,267 11% Gross Revenue 306,786 260,364 18% 67,610 61,559 10% Net Revenue 273,079 230,931 18% 5,632 4,769 18% EBITDA from Operations 22,196 17,609 26% 8.3% 7.7% +60 bps EBITDA Margin from Operati
Slide 30: Performance Highlights: Consumer Electronics
Performance Highlights: Consumer Electronics 1. Stores delivers steady growth led by ABV growth & improved conversions 2. Leveraged “Digital India Sales” event to drive engagement, with 15% YoY sales growth 3. Category specific campaigns such as ‘Digital Chill Fest’ for ACs & ‘Big Screen Fest’ for R
Slide 31: Performance Highlights: Fashion & Lifestyle (1/2)
Performance Highlights: Fashion & Lifestyle (1/2) Apparel & Footwear 1. Festivals (Sankranti, Holi) & winter wear campaign drive customer engagement 2. New formats: Yousta, Azorte & GAP continue to gain traction 3. Own brands continue to drive growth: 3 brands crossing milestone of Rs 2,000 crore an
Slide 32: Performance Highlights: Fashion & Lifestyle (2/2)
Performance Highlights: Fashion & Lifestyle (2/2) Premium Brands 1. Delivered 20% YoY growth with growing consumer preference for premium brands 2. Ajio Luxe delivers steady performance; options up 44% YoY; 20+ new brands launched during the quarter 3. Hamleys continues to expand its international p
Slide 33: Performance Highlights: Grocery
Performance Highlights: Grocery 1. Grocery delivers steady performance led by Smart & Smart Bazaar 2. ABV growth led by premiumization; trends towards shift in demand for premium products like millets over wheat, liquid detergents over soap bars etc. 3. ‘Full Paisa Vasool Sale’ grows 21% YoY led by
Slide 34: Performance Highlights: JioMart
Performance Highlights: JioMart 1. Overall AOV grew by 30% YoY; units per order up 37% YoY 2. Seller base up 94% YoY; live selection up 32% YoY 3. ‘Holi Ready’ & ‘Republic Day’ sales events drive customer engagement with growth in sessions and GMV 4. Launched new functionalities to enhance shopping
Slide 35: Performance Highlights: Consumer Brands
Performance Highlights: Consumer Brands 1. Consumer brands business continues to scale-up, growing 3x+ YoY in general trade New Product Launches i. Strong traction on Campa and Independence brands driving growth of beverage and staples categories 2. New product launch: Campa Runner Energy Lemon drin
Slide 36: Oil & Gas
Reliance Industries Limited Oil & Gas
Slide 37: Oil and Gas Operating Performance – FY24
Oil and Gas Operating Performance – FY24 ₹ crore 1. KG D6 – Field performance as per expectations US$ Mn FY24 FY23 % YoY Revenue 2,930 24,439 16,508 1.5x ✓ Production stable across 3 fields EBITDA 2,421 20,191 13,589 1.5x ✓ Average gas production at 27.1 MMSCMD EBITDA Margin (%) 82.6% 82.3% +30 bps
Slide 38: Oil and Gas Operating Performance – 4Q FY24
Oil and Gas Operating Performance – 4Q FY24 US$ Mn ₹ crore % QoQ % YoY 1. Robust Y-o-Y EBITDA growth led by 66.4% higher Revenue 775 6,468 -3.7% 42.0% production from KG D6 block EBITDA 672 5,606 -3.4% 47.5% EBITDA Margin (%) 86.7% +30 bps +330 bps 2. Average gas production for the quarter Productio
Slide 39: KG D6 – Fueling India's Energy Transition
KG D6 – Fueling India’s Energy Transition Average Gas Production (MMSCMD) 30 25 20 15 27.1 10 19.3 17.4 5 6.5 0 FY21 FY22 FY23 FY24 ➢ Domestic gas production at multi-year high of 99 MMSCMD with increased KG D6 production ▪ ~90% of incremental domestic production from KGD6 KG- D6 - contributing ~30%
Slide 40: Global Gas / LNG Markets
Global Gas / LNG Markets 1. Global gas prices trended lower with milder winter in NE Asia / Europe Historical Prices ($/mmbtu) ✓ Healthy EU storages at ~58.7% vs. 5 years avg. of 42.2% 25 $/ MMBtu JKM NBP TTF HH Apr’23 - Mar’24 Avg 12.26 10.82 11.09 2.51 ✓ JKM briefly touched a low of ~US$ 8.0/ MMBt
Slide 41: India Gas Market Scenario
India Gas Market Scenario Domestic Gas and RLNG Supplies 1. Indian demand rose to an all time high during FY24 with lower prices 200 188 168 161 ✓ Gas demand at ~188 MMSCMD* led by CGD, Fertiliser and Refinery 150 MMSCMD sector 100 ✓ Consumption led by increase in domestic production, lower LNG pric
Slide 42: Oil to Chemicals (O2C)
Oil to Chemicals (O2C)
Slide 43: O2C Operating Performance - FY24 vs FY23
O2C Operating Performance - FY24 vs FY23 US$ Mn FY24 FY23 % YoY 4. Superior operating performance driven by Revenue 67,712 564,749 594,650 -5.0% ✓ Favorable light feed cracking economics EBITDA 7,481 62,393 62,075 0.5% EBITDA Margin 11.0% 10.4% +60 bps ✓ Optimized crude basket cost Prod. meant for ✓
Slide 44: O2C Operating Performance – 4Q FY24
O2C Operating Performance – 4Q FY24 1. Margin environment across fuels and chemicals US$ Mn (₹ crore) % QoQ % YoY declined YoY Revenue 17,101 142,634 1.1% 10.9% EBITDA 2,012 16,777 19.3% 3.0% ✓ Fuel cracks declined 11-18% EBITDA Margin 11.8% +180 bps -90 bps ✓ Polymer deltas declined 9-34% with subd
Slide 45: Business Environment: Demand and Utilization Levels (4Q FY24)
Business Environment : Demand and Utilization Levels (4Q FY24) Global Oil Demand India Oil Demand 1. Global oil demand in 4Q FY24 rose by 1.6 mb/d YoY ✓ Market: China (0.8 mb/d), Other Asia (0.5 mb/d) 102 mb/d 60.9 MMT 1.6 mb/d YoY 4.2% YoY ✓ Product: Jet (0.7 mb/d), Gasoil (0.26 mb/d), Gaso
Slide 46: Domestic Environment – Oil Demand
Domestic Environment – Oil Demand In MMT 8.4% 4.2% 10.1% 1. 4Q FY24 India oil demand at 60.9 MMT, up 4.2% YoY 25 22.0 22.8 22.9 20 ✓ Gasoline demand up due to rising personal mobility trend 15 8.7 9.3 9.5 10 5 2.0 2.1 2.2 ✓ HSD demand up with resilient agricultural sector demand 0 Gasoline Diesel AT
Slide 47: Domestic Environment – Polymer Demand
Domestic Environment – Polymer Demand Polymer India Demand Growth YoY ( 4Q FY24 ) 1. 4Q FY24 Polymer demand remained flat YoY 10% 6% 7% 5% ✓ PE, PP demand up with healthy growth in infrastructure, 0% 0% FMCG, consumer durables, automotive and e-commerce -5% food packaging sectors -10% -15% ✓ PVC dem
Slide 48: Domestic Environment – Polyester Demand
Domestic Environment – Polyester Demand Polyester India Demand Growth YoY ( 4Q FY24 ) 1. 4Q FY24 Polyester demand declined marginally YoY 8% 8% ✓ PET demand up driven by anticipated summer 3% demand from beverages sector ✓ PFY & PSF demand down due to weak textile -2% -1% -3% export demand -5% -7% P
Slide 49: Polymer Deltas
Polymer Deltas Polymer Deltas – 4Q FY24 1. Polymers deltas witnessed mixed trends on QoQ basis 482 500 367 ✓ PE and PP deltas increased by 6% and 7% respectively 340 342 316 292 308 281 300 ✓ PVC delta decreased 7% as PVC prices remained stable $/MT 250 while EDC price increased by 9% 0 HDPE-Naphtha
Slide 50: Polyester Chain Delta
Polyester Chain Delta Polyester Chain Delta 4Q FY24 600 1. QoQ polyester chain delta stable 517 488 486 450 ✓ MEG delta improved due to higher freights amid Red Sea crisis and Panama Canal restrictions $/MT 300 150 ✓ PX deltas lower with firm feedstock prices and surplus 0 availability 4QFY23 3QFY24
Slide 51: Gasoil Cracks – 4Q FY24
Gasoil Cracks – 4Q FY24 1. Global gasoil demand increased by ~0.26 mb/d YoY to Gasoil (10 ppm) 30 28.3 mb/d 540.9 25 537.2 ✓ Demand increase in Asia Pacific ( 0.2 mb/d), partly 535.1 20 offset by decrease in Europe ( 0.1 mb/d) Mn bbls 530 $/bbl 15 2. QoQ and YoY Gasoil cracks moderated from highs
Slide 52: Jet/Kero Cracks – 4Q FY24
Jet/Kero Cracks – 4Q FY24 Jet/Kero 1. YoY Global Jet/kero demand increased by 0.7 mb/d 30 116.7 112.7 YoY to 7.6 mb/d 115 25 26 ✓ Asia Pacific ( 0.4 mb/d), Europe ( 0.1 mb/d) $/bbl 20 Mn. bbls 23.6 21.2 2. QoQ Jet/Kero cracks moderated with healthy Chinese 15 105 exports and seasonally lower deman
Slide 53: Gasoline Cracks – 4Q FY24
Gasoline Cracks – 4Q FY24 Gasoline 92R Cracks 1. Global gasoline demand increased ~0.16 mb/d YoY to 26.1 mb/d 20 456.1 ✓ North America ( 0.1 mb/d), Europe ( 0.1 mb/d) 464.1 449.3 15 2. QoQ Gasoline cracks up sharply 15 450 Mn bbls $/bbl 10 13.3 ✓ Unplanned refinery outages amid heavy refinery 7.6
Slide 54: Fuel Cracks – FY2023-24
Fuel Cracks – FY2023-24 1. Fuel cracks declined from historic highs, but remained above mid- $/bbl YoY Fuel Cracks cycle levels (Dislocation in energy markets in FY23) 45 2. Gasoil cracks impacted by 40.7 40 35 32.9 ✓ Resilient Russian supplies despite sanctions 30 ✓ Lower industrial activities, hig
Slide 55: O2C Operating Performance
O2C Operating Performance 1. Throughput of primary and secondary units maximized post 4Q FY24 3Q FY24 Feedstock major M&I activity in previous quarter (Vol in MMT) Throughput 19.8 18.7 2. Advantaged Crude and Ethane sourcing to minimize feedstock cost Production meant for sale 3. Domestic fuel sale
Slide 56: O2C Business Dynamics
O2C Business Dynamics Demand and Margin Challenges / Volatility 1. Global oil demand growth expected at ~1.2 mb/d in 1. OPEC+ members extending voluntary production 2024 after strong growth of 2.3 mb/d in 2023 cuts and geopolitical tensions in Middle East and 2. Domestic demand for fuels and downstr
Slide 57: Summary
Summary 57
Slide 58: Summary
Summary 1. Record operating performance demonstrates robust strategy and strong execution ✓ EBITDA nearly doubled over 5-year period; Consumer business EBITDA up ~4x in the same period 2. Strong visibility of continuing growth trajectory and reduced volatility with dynamic business portfolio 3. Ener
Slide 59: Thank You
Thank You 59