Reliance Industries Limited · NSE:RELIANCE
Reliance Industries — Q3 FY2024 Earnings Presentation
56 slides from Reliance Industries's earnings presentation, Jan 19, 2024
Slide 1: Exchange filing cover letter for analyst presentation
January 19, 2024 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, Plot No. C/1, Dalal Street, G Block Bandra-Kurla Complex, Mumbai 400 001 Bandra (East) Mumbai 400 051 Scrip Code: 500325 Trading Symbol: RELIANCE Dear Sirs, Sub: Presentation made to anal
Slide 2: 3Q FY24 Financial Results Presentation
3Q FY24 Financial Results Presentation 19 January 2024 1
Slide 3: 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 4: Consolidated Financial Results
Consolidated Financial Results 3
Slide 5: 3Q FY24 – Consolidated Highlights
3Q FY24 – Consolidated Highlights 1. EBITDA at ₹ 44,678 crore (US$ 5.4 billion), up 16.7% YoY 2. Net profit at ₹ 19,641 crore (US$ 2.4 billion), up 10.9% YoY ✓ Earnings growth led by robust Retail and Oil & Gas performance, steady Digital Services and O2C 3. Retail - Strong growth momentum continuin
Slide 6: 3Q FY24 – Key Segment Highlights (1/2)
3Q FY24 – Key Segment Highlights (1/2) Retail (RRVL) Digital Services (JPL) US$ Mn ₹ crore % YoY US$ Mn ₹ crore % YoY Revenue 9,982 83,063 22.8% Revenue 3,907 32,510 11.4% EBITDA 752 6,258 31.1% EBITDA 1,677 13,955 11.5% No. of Stores 18,774 9.0% ARPU (₹ ) 181.7 2.0% Area Operated (Mn. Sq.ft.) 72.9
Slide 7: 3Q FY24 – Key Segment Highlights (2/2)
3Q FY24 – Key Segment Highlights (2/2) O2C Oil & Gas US$ Mn ₹ crore % YoY US$ Mn ₹ crore % YoY Revenue 16,956 141,096 -2.4% Revenue 807 6,719 50.2% EBITDA 1,690 14,064 1.0% EBITDA 697 5,804 49.6% Prod. meant for Sale (MMT) 16.4 1.2% KG D6 Production (BCFe) 72.3 72.6% 1. Stable EBITDA supported by: 1
Slide 8: Consolidated Financial Results : 3Q FY24
Consolidated Financial Results : 3Q FY24 US$ Mn ₹ crore % QoQ % YoY Revenue 29,822 248,160 -3.1% 3.2% 1. YoY strong operating performance EBITDA 5,369 44,678 -0.4% 16.7% ✓ EBITDA growth led by strong consumer Finance Cost 696 5,789 1.0% 11.3% business momentum and upstream contribution Depreciation
Slide 9: EBITDA Contribution (3Q FY24 vs 3Q FY23)
EBITDA Contribution (3Q FY24 vs 3Q FY23) 1. O2C – Stable EBITDA in a weak downstream market 3Q FY24 vs 3Q FY23 - ₹ crore (YoY) environment 1,484 44,678 1,361 ✓ Maximized arbitrage barrels, ethane cracking and 1,485 higher domestic product placement supported growth 1,924 38,286 138 2. Oil & Gas – Sh
Slide 10: EBITDA Contribution (3Q FY24 vs 2Q FY24)
EBITDA Contribution (3Q FY24 vs 2Q FY24) 1. O2C performance impacted by 3Q FY24 vs 2Q FY24 - ₹ crore (QoQ) ✓ Weakness across fuel and downstream margins 44,867 2,217 360 44,678 ✓ M&I shutdown impacted yields and profitability with 440 190 1,038 reduced fuel output and lower light feed cracking 2. Oi
Slide 11: Robust Balance Sheet
Robust Balance Sheet Dec-23 Sep-23 Change US$ Mn ₹ crore ₹ crore ₹ crore Gross Debt 37,463 311,743 295,687 16,056 Cash & cash equi. 23,118 192,371 177,960 14,411 Net Debt 14,345 119,372 117,727 1,645 1. Moderation in capex with completion of pan-India 5G roll-out ✓ Robust operating cash flows, capit
Slide 12: Digital Services
Digital Services
Slide 13: Jio True5G delivering unparalleled experience for users
Jio True5G delivering unparalleled experience for users Jio 5G Standalone network footprint ~90 million 5G network carries subscribers migrated one-fourth of mobility to 5G data traffic ➢ Jio’s superior network attracting subscribers with: ➢ Jio 5G availability 3x that of nearest competitor Dec’22 D
Slide 14: Jio is Preferred Subscriber Choice
Jio is Preferred Subscriber Choice Industry YoY Customer Base Growth (%) ➢ Better Network resulted in customer base growth for Jio while competitors have 7.4% lost base ➢ Jio continues to gain majority share of new 5G devices because of its superior 0.7% coverage and capacity Jio Competition Industr
Slide 15: JioBharat Accelerating Rural Market Share gain
JioBharat Accelerating Rural Market Share gain ➢ Enhancing customer delight - Scan and Pay, Read Aloud features introduced in JioPay, LiveTV playback in JioCinema ➢ JioBharat increasing financial inclusion - JioBharat users contributed to 60% of total UPI123 Pay transactions in Dec’23. ➢ JioBharat h
Slide 16: AirFiber – Ready For Scaling Up The Home Business
AirFiber – Ready For Scaling Up The Home Business Jio AirFiber sees extensive demand in underserved tier 3/4 towns and rural markets Jio’s unique multi-user solution powered by own 5G core drives most cost effective FWA rollout globally Content bundling is driving a ~30% higher per capita usage on J
Slide 17: Consistent Enterprise Market Share Gains For Jio
Consistent Enterprise Market Share Gains For Jio 01 33% of large named enterprises use 04 1.3x increase in revenues from two or more Jio services Top100 accounts ~50% branches of Top10 Banks 1.5x increase in number of 02 05 in India run on Jio network accounts in Rs. 5 Cr+ revenue bucket Jio’s Digit
Slide 18: Jio @ IMC 2023
Jio @ IMC 2023 JioSpaceFiber JioCloud AI Powered Skill India’s first gigabit satellite Indigenous cloud infrastructure Development connectivity powering India Bridging skill gaps with AI JioGames Connected Vehicles Private 5G in a Box Cloud gaming platform across A unified mobility platform and Enab
Slide 19: Quarterly Highlights
Quarterly Highlights 1 Consistent double-digit growth in Revenue and EBITDA ➢ JPL consolidated Revenue at Rs 27,697 crore, growth of 11.3% YoY ➢ JPL consolidated EBITDA at Rs 13,955 crore, growth of 11.5% YoY 2 Sustained outperformance in subscriber additions versus competition ➢ Net addition of 11.
Slide 20: RJIL: Key Operating Metrics
RJIL: Key Operating Metrics Q3’FY24 Q2’FY24 Q3’FY23 Total Customer base ➢ Strong net customer addition of 11.2 470.9 459.7 432.9 (million) million in Q3’FY24 Net Customer addition 11.2 11.1 5.3 (million) ➢ ARPU at Rs 181.7 in Q3’FY24 ARPU 181.7 181.7 178.2 (Rs/ month) ➢ Robust growth in data consump
Slide 21: RJIL: Q3’FY24 Financials
RJIL: Q3’FY24 Financials Operating Revenue (in Rs crore) EBITDA (in Rs crore) 25,368 13,422 24,750 13,059 24,042 12,663 23,394 22,998 12,315 12,072 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 ➢ RJIL Operating Revenue growth of 10.3% YoY led by robust expansion in subscriber
Slide 22: Jio Platforms Limited: Q3’FY24 Financials
Jio Platforms Limited: Q3’FY24 Financials JPL Consolidated Particulars Q3 FY'24 Q2 FY'24 Q3 FY'23 ➢ Revenue from operations at Gross Revenue* 32,510 31,537 29,195 Rs.27,697 Cr; 11.3% YoY growth Operating Revenue 27,697 26,875 24,892 ➢ EBITDA increased to Rs.13,955 Cr in Q3 EBITDA 13,955 13,528 12,51
Slide 23: Reliance Retail
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Slide 24: Reliance Retail at a Glance: Q3 FY24
Reliance Retail at a Glance: Q3 FY24 % YoY Category Parameters Q3 FY24 Q3FY23 Growth Gross Revenue (Rs. crore) 83,063 67,623 23% EBITDA (Rs. crore) 6,258 4,773 31% Financials PAT (Rs. crore) 3,165 2,400 32% Share of Digital & New Commerce 19% 18% +100 bps Retail Stores 18,774 17,225 9% Infrastructur
Slide 25: Q3 FY24: Steady Performance During the Quarter
Q3 FY24: Steady Performance During the Quarter • Broad based growth across consumption baskets • Grocery revenue grew 41% YoY, Fashion & Lifestyle grew 28% YoY and Consumer Electronics grew 19% YoY • Increased customer engagement during festive period across businesses • EBITDA margin from operation
Slide 26: Steady Growth in Revenue and EBITDA
Steady Growth in Revenue and EBITDA Gross Revenue EBITDA Rs Crores Rs Crores 6,258 83,063 197 • Revenue crosses a 67,623 4,773 milestone of Rs 80,000 57,714 116 3,823 Crores this quarter 300 6,061 • EBITDA at a new high of 4,657 Rs 6,258 Crores this 3,523 quarter 3Q 3Q 3Q 3Q 3Q 3Q FY22 FY23 FY24 FY2
Slide 27: Financial Summary
Financial Summary Rs. Crores % Growth % Growth Q2 FY24 Parameter Q3 FY24 Q3 FY23 QoQ YoY 77,148 8% Gross Revenue 83,063 67,623 23% 68,937 8% Net Revenue 74,373 60,096 24% 5,607 8% EBITDA from Operations 6,061 4,657 30% 8.1% - EBITDA Margin from Operations (%) 8.1% 7.7% +40 bps 213 -8% Investment Inc
Slide 28: Performance Highlights: Grocery
Performance Highlights: Grocery • Grocery delivers 41% YoY growth with uptick led by festive demand • Growth in “Bestival Sale” led by Confectionary, Snacks and Dry Fruits; highest ever single day sale registered during the campaign period • Strong growth in non-food categories led by General Mercha
Slide 29: Performance Highlights: JioMart
Performance Highlights: JioMart • JioMart delivers steady growth led by increase in traffic and average order value • Focus on driving multi-category sales; F&L and CDIT categories outperform • JioUtsav event witnessed 1.9x growth in sessions, 1.5x in orders, 2.3x in GMV vs BAU • Continued focus on
Slide 30: Performance Highlights: Consumer Brands
Performance Highlights: Consumer Brands • Business delivers ~ 3x growth YoY in revenues and distribution reach • Beverages, general merchandise and staples categories on a sustained growth path Gift Pack Pouch Jar • Campa and Independence brands achieve new high Toffeeman New Launch • Bugles & Potat
Slide 31: Performance Highlights: Fashion & Lifestyle (1/4)
Performance Highlights: Fashion & Lifestyle (1/4) Apparel & Footwear • Delivers steady growth driven by footfalls and conversions • Multiple store formats registered highest ever revenue during the quarter • Broad-based growth across categories Swadesh store in Hyderabad • Women’s Sarees, Kurtis & W
Slide 32: Performance Highlights: Fashion & Lifestyle (2/4)
Performance Highlights: Fashion & Lifestyle (2/4) AJIO • Added 1.6 million new customers during the quarter; option count up 38% YoY • Strengthened portfolio through new brand launches (IndiePicks, Svaraa, Dhruv Kapoor, Champion) • Launched AjioGram, D2C focused content driven platform that onboards
Slide 33: Performance Highlights: Fashion & Lifestyle (3/4)
Performance Highlights: Fashion & Lifestyle (3/4) Jewels • Jewels delivers steady performance led by festive and wedding season buying • Strong festive performance on Dhanteras with highest ever sales • Tier 2 and beyond towns show strong uptick in sales Swarn Banga campaign • Launched Vivaham weddi
Slide 34: Performance Highlights: Fashion & Lifestyle (4/4)
Performance Highlights: Fashion & Lifestyle (4/4) Urban Ladder • Continued focus on ramping up store network through EBOs with presence across 29 cities • Leveraging Grab & Go merchandise for sales in Smart Bazaar SIS Brand Campaign Tira • Expanding store network across top tier cities with strong c
Slide 35: Performance Highlights: Consumer Electronics
Performance Highlights: Consumer Electronics • Sustained 19% YoY growth driven by higher ABV and improved conversions • Broad-based growth led by phones, large appliances and TVs • Strong performance of new launches and flagship models led growth across top brands • Increased assortment of ACs & exc
Slide 36: Oil & Gas
Reliance Industries Limited Oil & Gas
Slide 37: Oil and Gas Segment Performance – 3Q FY24
Oil and Gas Segment Performance – 3Q FY24 US$ Mn ₹ crore % QoQ % YoY 1. Highest ever quarterly EBITDA, up 49.6% YoY Revenue 807 6,719 1.5% 50.2% ✓ Significant increase in volume offset lower EBITDA 697 5,804 21.8% 49.6% realization EBITDA Margin (%) 86.4% +1440 bps -30 bps Production (RIL share in ✓
Slide 38: Project Updates
Project Updates 1. KG D6 ✓ All 19 wells in the three fields completed and producing ✓ Focus on field management and production sustenance 2. CBM ✓ 40 multi-lateral well campaign underway to augment production ✓ 4 wells drilled, 3 wells connected, and initial dewatering & production ramp up underway
Slide 39: KG D6 – Fueling India’s Energy Transition
KG D6 – Fueling India’s Energy Transition Average Gas Production (MMSCMD) 30 25 20 15 26.3 10 18.2 20.2 5 6.5 0 FY21 FY22 FY23 9M FY24 KG- D6 - contributing ~30% of India’s domestic gas production 38
Slide 40: KG D6 - Gas Marketing
KG D6 - Gas Marketing 1. Completed auction of 4 MMSCMD gas from KG-D6 ✓ Participation across sectors – Fertilizer, CGD, Refineries, and Aggregators ✓ Total 38 successful bidders secured gas ✓ Major volumes to CGD and Fertilizer Sector ✓ Ceiling price applicable for KG D6 at ~$9.96/MMBtu for 2H FY24
Slide 41: Global Gas/LNG Outlook
Global Gas/LNG Outlook 1. Global gas/LNG prices settled lower than expected Historical Prices ($/mmbtu) $/ MMBtu JKM NBP TTF HH ✓ Europe entered winter season with higher inventories 25.0 Oct’23 - Dec’23 Avg 15.87 13.48 13.64 2.93 compared to last year 20.0 ✓ Lower demand as milder winter in NE Asia
Slide 42: Oil to Chemicals (O2C)
Oil to Chemicals (O2C) 41
Slide 43: O2C Operating Performance
O2C Operating Performance US$ Mn (₹ crore) % QoQ % YoY 1. YoY EBITDA up marginally in a challenging environment Revenue 16,956 141,096 -4.7% -2.4% 2. Higher product placement in the domestic market EBITDA 1,690 14,064 -13.6% 1.0% supported by healthy demand EBITDA Margin 10.0% -100 bps +40 bps ✓ Hig
Slide 44: Business Environment - Demand and Utilization Levels
Business Environment - Demand and Utilization Levels 1. Global oil demand in 3Q FY24 rose by 1.7 mb/d YoY Global Oil Demand India Oil Demand ✓ Geography : China (1.5 mb/d), Americas (0.4 102.0 mb/d 58.4 MMT mb/d), Other Asia (0.3 mb/d) 1.7 mb/d YoY 2.1% YoY ✓ Product : Jet (1.1 mb/d), gasoli
Slide 45: Domestic Environment – Oil Demand
Domestic Environment – Oil Demand In MMT 1. Oil demand at 58.4 MMT, up 2.1% YoY and 5.5% QoQ 5.7% 1% 11% 2. Gasoline demand up 24 22.5 22.8 20.0 ✓ Holiday travel and continuing growth in auto sales 21 18 3. HSD demand up 15 12 ✓ Positive momentum in industrial and mining 8.8 9.1 9.3 activities 9 6 4
Slide 46: Domestic Environment – Polymers and Polyester Demand
Domestic Environment – Polymers and Polyester Demand Polymer India Demand Growth YoY (3Q FY24) Polyester India Demand Growth YoY (3Q FY24) 19% 9% 20% 13% 5% 10% 1% 10% 3% -2% 0% -5% -3% PE PP PVC Polymer PSF PFY PET Polyester 1. Polymer demand up 10% YoY 1. Polyester demand marginally up 1% YoY ✓ PE
Slide 47: Business Environment – Polymers Deltas
Business Environment – Polymers Deltas 1. Polymer deltas remained weak on YoY and QoQ basis Polymer Deltas ($/MT) – 3QFY24 600 ✓ Subdued global demand particularly from China 460 2. YoY PE (-11%) and PP (-4%) deltas impacted by lower 409 prices due to oversupply and firm feedstock cost 400 327 335 3
Slide 48: Business Environment – Polyester Chain Deltas
Business Environment – Polyester Chain Deltas 1. YoY Polyester chain delta remained stable Polyester Chain Deltas ($/MT) -3Q FY24 ✓ Improvement in PX (+18%) delta offset weaker PTA delta (-28%) 600 ✓ MEG delta improved sharply on a lower base 524 488 488 2. On QoQ, Polyester chain delta impacted by
Slide 49: Regional Business Environment – Gasoil
Regional Business Environment – Gasoil 1. Global gasoil demand declined 0.18 mb/d YoY to 29 mb/d Gasoil (10 ppm) Cracks ✓ Demand up in India ( 85 kb/d), China ( 60 kb/d), but 45 560.0 declined in Europe ( 146 kb/d), Africa ( 81 kb/d) 41.5 40 543.9 35 540 2. Gasoil cracks moderated both on a YoY
Slide 50: Regional Business Environment – Jet/Kero
Regional Business Environment – Jet/Kero 1. Global Jet/kero demand improved 1.1 mb/d YoY to 7.6 mb/d Jet/Kero Cracks 40 ✓ Demand up in Asia-Pac (780 kb/d), Africa (127 115.2 35 33.5 115 kb/d), Europe (102 kb/d), North America (85 kb/d) 30 110.2 $/bbl 26.1 Mn. bbls 25 23.6 2. Jet cracks softened
Slide 51: Regional Business Environment – Gasoline
Regional Business Environment – Gasoline 1. Global gasoline increased 1.1 mb/d YoY to 26.7 mb/d Gasoline 92R Cracks ✓ Demand improved in Asia-Pac ( 1.03 mb/d), Europe ( 98 kb/d), North America ( 43 kb/d) while demand declined in FSU and Africa 15 450 13.1 2. YoY gasoline cracks improved 10 442.5
Slide 52: O2C Operating Performance
O2C Operating Performance 1. Lower throughput on account of M&I shutdowns for key 3Q FY24 2Q FY24 primary and secondary units, all units now on-stream Feedstock (Vol in MMT) ✓ One CDU & one Delayed Coking in SEZ refinery Throughput 18.7 20.0 ✓ FCCU in DTA refinery and ROGC 2. Maximized arbitrage bar
Slide 53: O2C Business Perspectives
O2C Business Perspectives 1. Oil production cuts by OPEC+ countries and war to keep the market volatile 2. Global oil demand remained strong with continuing uptrend in transportation fuel demand ✓ CY2023 demand at 101.7 mb/d, up 2.3 mb/d, CY2024 demand expected at 103.0 mb/d, up 1.2 mb/d ✓ China’s s
Slide 54: Summary
Summary 53
Slide 55: Summary
Summary 1. Operational discipline delivering growth through dynamic market conditions 2. Strong domestic demand across consumer and energy markets 3. Stable O2C earnings amidst continued volatility and market disruptions ✓ Downstream chemical margins pressured by higher feedstock costs amid tepid Ch
Slide 56: Thank You
Thank You 55
Reliance Industries — Q3 FY2024 Earnings Presentation on 6ix