Reliance Industries Limited · NSE:RELIANCE
Reliance Industries — Q1 2025 Earnings Presentation
50 slides from Reliance Industries's earnings presentation, Jul 19, 2024
Slide 1: 1Q FY25 Financial Results Presentation
1Q FY25 Financial Results Presentation 19 July 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
Consolidated Financial Results 3
Slide 4: 1Q FY25 – Consolidated Highlights
1Q FY25 – Consolidated Highlights 1. Consolidated EBITDA – continuing growth in consumer business and strong upstream performance offset weak O2C 2. Retail growth led by Grocery and Consumer Electronics, ₹ 42,748 crore 2.0% YoY EBITDA improvement in customer engagement and increasing (US$ 5.1 bn) co
Slide 5: 1Q FY25 – Retail Segment Highlights
1Q FY25 – Retail Segment Highlights Retail (RRVL) 1. Steady revenue growth: US$ Mn ₹ crore % YoY ✓ Digital - Strong summer season sales for ACs, Refrigerators, TVs (T20 World Cup, IPL) Revenue 9,068 75,615 8.1% ✓ Grocery – Summer Ready Sale (+30%), Full Paisa EBITDA 679 5,664 10.5% Vasool sale (+32%
Slide 6: 1Q FY25 – Digital Services Segment Highlights
1Q FY25 – Digital Services Segment Highlights Digital Services (JPL) 1. Revenue growth led by strong subscriber addition US$ Mn ₹ crore % YoY 2. Double digit EBITDA growth with stable margin Revenue 4,143 34,548 12.8% 3. Subscriber addition at 8.0 Mn during 1Q EBITDA 1,755 14,638 11.6% ✓ Industry le
Slide 7: 1Q FY25 – O2C Segment Highlights (YoY)
1Q FY25 – O2C Segment Highlights (YoY) 1. Lower gasoline cracks (-30%), lower PE (-17%), PP O2C (-16%), Polyester chain (-15%) deltas dragged EBIDTA; partially offset by US$ Mn ₹ crore % YoY ✓ Advantageous ethane vs. naphtha cracking Revenue 18,844 157,133 18.1% EBITDA 1,570 13,093 -14.3% ✓ Robust d
Slide 8: 1Q FY25 – Oil & Gas Segment Highlights
1Q FY25 – Oil & Gas Segment Highlights Oil & Gas 1. Robust Revenue and EBITDA growth led by sharp increase in volumes from KGD6 block US$ Mn ₹ crore % YoY Revenue 741 6,179 33.4% 2. EBITDA growth partially impacted by lower EBITDA 625 5,210 29.8% realization KG D6 Production (BCFe) 69.4 43.7% ✓ 14.2
Slide 9: Consolidated Financial Results : 1Q FY25
Consolidated Financial Results : 1Q FY25 US$ Mn ₹ crore % QoQ % YoY 1. YoY Revenue growth led by all key segments Revenue 30,919 257,823 -2.6% 11.5% EBITDA 5,126 42,748 -9.1% 2.0% 2. Upstream and consumer businesses supported Finance Cost 710 5,918 2.7% 1.4% EBITDA growth Depreciation 1,630 13,596 0
Slide 10: EBITDA Contribution (1Q FY25 vs 1Q FY24)
EBITDA Contribution (1Q FY25 vs 1Q FY24) 1Q FY25 vs 1Q FY24 - ₹ crore (YoY) 1. O2C – Ample supply weighed on fuel cracks and 85 42,748 downstream deltas 1,222 41,906 2,193 ✓ Gasoline (-30%), PE (-17%), PP (-16%), Polyester 533 Chain (-15%) 1,195 2. Oil & Gas – Strong volume growth of 43.7% from KGD6
Slide 11: EBITDA Contribution (1Q FY25 vs 4Q FY24)
EBITDA Contribution (1Q FY25 vs 4Q FY24) 1Q FY25 vs 4Q FY24 - ₹ crore (YoY) 1. O2C - Sharp decline in fuel cracks impacted performance ✓ Gasoline (-36%), Gasoil (-36%), ATF (-37%) 47,050 3,669 ✓ Recovery in downstream chemicals margins cushioned earnings – PVC (+17%), PE (+7%) 396 205 302 334 42,748
Slide 12: Robust Balance Sheet
Robust Balance Sheet Jun-24 Mar-24 Change US$ Mn ₹ crore ₹ crore ₹ crore Gross Debt 36,569 304,937 324,622 -19,685 Cash & cash equi. 23,097 192,596 208,341 -15,745 Net Debt 13,472 112,341 116,281 -3,940 1. Net Debt lower with strong cash flow generation and moderation in capex 2. Capex of ₹ 28,785 c
Slide 13: Digital Services
Digital Services
Slide 14: Quarterly Highlights
Quarterly Highlights 1 Industry-leading operating performance driving healthy financial results ➢ JPL consolidated Revenue at Rs 29,449 Crore, growth of 12.8% YoY ➢ JPL consolidated EBITDA at Rs 14,638 Crore, growth of 11.6% YoY 2 Subscriber base at 489.7 million in Q1 FY’25; net additions of 8.0 mi
Slide 15: Continuing Leadership In 5G Transition
Continuing Leadership In 5G Transition Jio’s is the largest 5G operator outside China with ~130 million subscribers 5G users account for over 31% of Jio’s wireless data traffic The entire 5G data is being carried on Jio’s own 5G+4G combo core Jio introduced two new services – JioSafe and JioTranslat
Slide 16: JioAirFiber Building Traction In Home Broadband
JioAirFiber Building Traction In Home Broadband Jio AirFiber is now available pan India Strong demand for the bundled entertainment and connectivity solution has led to highest ever quarterly home connects at over 1.1 million Network slicing on Standalone 5G network and Jio’s unique point-to-multipo
Slide 17: Enterprise Business – Making In-Roads in Key Verticals
Enterprise Business – Making In-Roads in Key Verticals Jio is successfully displacing Building Leadership In IoT as a single 01 competition from large multi-year 04 point provider of Device, Connectivity & government deals Platform Expanding wallet share beyond Cohort-Specific propositions for 02 co
Slide 18: New Tariff Plans To Drive Innovation And Growth
New Tariff Plans To Drive Innovation And Growth ➢ To strengthen the telecom industry and build a Premier Digital Society in India, Jio announced its new unlimited plans effective 3rd July 2024 ➢ Jio would continue to offer superlative 5G experience on its leading plans at no additional cost to its u
Slide 19: Jio Consolidates Leadership In Spectrum Footprint
Jio Consolidates Leadership In Spectrum Footprint Jio’s spectrum holding (uplink + downlink, in MHz) 22,000 26,801 In the recent spectrum auction, Jio acquired right to use additional spectrum in 1800MHz band in Bihar and West Bengal for a cumulative cost of ~Rs974 crore 2,440 Jio’s spectrum footpri
Slide 20: RJIL: Key Operating Metrics
RJIL: Key Operating Metrics Q1’FY25 Q4’FY24 Q1’FY24 Total Customer base ➢ Healthy net customer addition of 8.0 489.7 481.8 448.5 (million) million in Q1’FY25 Net Customer addition 8.0 10.9 9.2 (million) ➢ ARPU at Rs 181.7 in Q1’FY25 ARPU 181.7 181.7 180.5 ➢ 5G consumption uptick drives per capita (R
Slide 21: RJIL: Q1’FY25 Financials
RJIL: Q1’FY25 Financials Operating Revenue (in Rs crore) EBITDA (in Rs crore) 26,478 14,022 25,959 13,734 25,368 13,422 24,750 13,059 24,042 12,663 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 Jun-23 Sep-23 Dec-23 Mar-24 Jun-24 ➢ RJIL Operating Revenue growth of 10.1% YoY driven by subscriber growth ➢ RJIL EB
Slide 22: Jio Platforms Limited: Key Financials
Jio Platforms Limited: Key Financials JPL Consolidated Particulars Q1 FY25 Q4 FY24 Q1 FY24 ➢ Revenue from operations at Rs 29,449 Cr in Gross Revenue* 34,548 33,835 30,640 Q1’FY25; 12.8% YoY growth Operating Revenue 29,449 28,871 26,115 ➢ EBITDA increased to Rs 14,638 Cr in Q1’FY25 EBITDA 14,638 14,
Slide 23: Reliance Retail
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Slide 24: Performance Highlights
Performance Highlights 1. Reported revenue of Rs. 75,615 crore in Q1 FY25, grew by 8% YoY 2. Reported EBITDA at Rs 5,664 crore in Q1FY25, grew by 10% YoY, led by increase in footfalls and expansion of store footprint, streamlining of operations driving margin improvement 3. EBITDA margin from operat
Slide 25: Financial Performance
Financial Performance In Rs. crore % Change Parameter Q1 FY25 Q1 FY24 YoY Gross Revenue 75,615 69,948 8% Net Revenue 66,260 62,159 7% EBITDA from Operations 5,448 4,884 12% EBITDA Margin from Operations (%) 8.2% 7.9% +30 bps Investment Income 216 243 (11%) Total EBITDA 5,664 5,127 10% Total EBITDA M
Slide 26: Performance Highlights: Consumer Electronics
Performance Highlights: Consumer Electronics 1. Business growth led by customer walk-ins and increasing ABV* 2. Digital stores delivered steady growth led by summer season for AC’s and refrigerators, and events like cricket world cup and IPL for TVs 3. resQ expands service network with 50+ new cente
Slide 27: Performance Highlights: Fashion & Lifestyle (1/2)
Performance Highlights: Fashion & Lifestyle (1/2) Apparel & Footwear 1. Business focusing on continuously refreshing assortment in line with emerging trends and expansion of store footprint 2. New formats continue to scale up; Yousta, Azorte, GAP etc. 3. Announced exclusive partnership with ASOS to
Slide 28: Performance Highlights: Fashion & Lifestyle (2/2)
Performance Highlights: Fashion & Lifestyle (2/2) Premium Brands 1. Expands F&B business through opening new Pret A Manger stores 2. AjioLuxe delivers strong growth; options up 39% YoY; portfolio crosses 700 brands 3. Exclusive launches by Sephora: Kylie Cosmetics and Rare Beauty‘s summer collection
Slide 29: Performance Highlights: Grocery
Performance Highlights: Grocery 1. Delivers steady performance led by big box formats and expansion in Tier 2 and beyond cities 2. Continues to expand premium formats in select affluent catchments 3. Summer Ready Sale (up 30% YoY) & Full Paisa Vasool Sale (up 32% YoY) events Full Paisa Vasool Sale c
Slide 30: Performance Highlights: JioMart
Performance Highlights: JioMart 1. JioMart delivers steady performance with growing AOV*, up 16% YoY 2. Non-Grocery category continues to do well; AOV up by 50%+ YoY led by electronics 3. Continues to grow options count and expands seller base by 69% YoY 4. Leveraging hyperlocal presence for new cus
Slide 31: Performance Highlights: Consumer Brands
Performance Highlights: Consumer Brands Beverages Biscuits 1. Consumer brands continues to deliver growth across categories 2. Continues to deepen presence in General Trade; delivers 150%+ growth YoY 3. New product launches across brands including Campa, Independence, Maliban, Staples Ravalgaon etc.
Slide 32: Oil & Gas
Reliance Industries Limited Oil & Gas
Slide 33: Oil and Gas Segment Performance – 1Q FY25
Oil and Gas Segment Performance – 1Q FY25 1Q FY25 1. Robust YoY EBITDA growth of 30% driven by US$ Mn ₹ crore % QoQ % YoY ✓ 44% increase in KG D6 gas production Revenue 741 6,179 -4.5% 33.4% partly offset by lower price realization EBITDA 625 5,210 -7.1% 29.8% EBITDA Margin (%) 84.3% -240 bps -240 b
Slide 34: KG D6 – Fueling India’s Energy Transition
KG D6 – Fueling India’s Energy Transition Average Gas Production (MMSCMD) 30 25 20 15 27.1 28.7 10 19.3 17.4 5 6.5 0 FY21 FY22 FY23 FY24 1Q FY25 KG- D6 - contributing ~30% of India’s domestic gas production 34
Slide 35: Global Gas / LNG Markets
Global Gas / LNG Markets 1. Gas prices remain firm amid supply concerns, strong summer demand Historical Prices ($/mmbtu) 25.0 ✓ EU storages at ~78.8% vs ~80% a year ago ✓ Spot LNG prices surged 50% to ~$12, QoQ avg. increase of 21% 20.0 ✓ LNG Terminals outages and production disruption supported pr
Slide 36: India Gas Market
India Gas Market 1. India gas demand growth resilient to elevated global 40 $/MMBtu 32.59 prices 30 2. LNG imports increased 30% in 1Q FY25 20 ✓ Increasing CGD demand and higher gas-based 9.87 10 5.61 12.46 power generation (owing to heatwaves in India) 9.17 2.39 3. Ceiling price applicable for KGD6
Slide 37: Oil to Chemicals (O2C)
Oil to Chemicals (O2C) 37
Slide 38: O2C Financial Performance
O2C Financial Performance US$ Mn (₹ crore) % QoQ % YoY YoY Revenue 18,844 157,133 10.2% 18.1% 1. EBITDA lower 14% due to sharp decline in product EBITDA 1,570 13,093 -21.9% -14.3% margins EBITDA Margin 8.3% -350bps -320bps ✓ Gasoline (-30%), PE (-17%), PP (-16%) Prod. meant for ✓ Polyester chain del
Slide 39: Energy Market Environment
Energy Market Environment Brent Crude ($/bbl) 1. Avg. crude prices increased 8.7% YoY and 2% QoQ 100 to $84.9/bbl 80 ✓ Strong demand from emerging markets coupled 60 with lower OPEC+ supply 40 1Q FY25 Avg - $84.9 4Q FY24 Avg - $83.1 2. US Ethane prices decreased 9% YoY while Naphtha 20 price increas
Slide 40: Global Oil Demand
Global Oil Demand 120 102.2 101.3 102.9 1. Global oil demand in 1Q FY25 up 0.7 mb/d YoY 90 mb/d 60 ✓ Asia (ex-China) ( 0.6 mb/d), Africa ( 0.1 mb/d), 30 ME (0.1 mb/d) 0 1QFY24 4QFY24 1QFY25 2. Transportation fuel demand remained firm ✓ Gasoline up 0.2 mb/d – led by Asia Pacific & ME 40 28.8 27.8
Slide 41: Domestic Environment – Oil Demand
Domestic Environment – Oil Demand Domestic Oil Demand 1. Oil demand at 60.9 MMT, up 3.4% YoY and flat QoQ 2. Gasoline demand up 7.1% YoY In MMT ✓ Increased tourism and growth in auto industry 28 23.9 24.3 24 22.9 3. HSD demand up 1.6% YoY 20 16 ✓ Robust growth in industrial activities 12 9.4 9.5 10.
Slide 42: Domestic Environment – Polymers and Polyester Demand
Domestic Environment – Polymers and Polyester Demand Polymer Demand YoY (1Q FY25) Polyester Demand YoY (1Q FY25) 30% 40% 20% 27% 20% 25% 9% 5% 9% 8% 10% 10% 2% -5% -4% 0% -20% PE PP PVC Polymer PSF PFY PET Polyester 1. Polymer demand up 8% YoY, at 5 MMT 1. Polyester demand up 5% YoY, at 1.8 MMT ✓ PV
Slide 43: Regional Business Environment – Transportation Fuels
Regional Business Environment – Transportation Fuels Gasoil Product Cracks 1. YoY cracks declined marginally with subdued global demand 25 2. QoQ decline due to weaker demand in Asia especially China 23.1 21.1 ✓ Supply glut in Asia as Red Sea tensions resulted in high freight 20 rates leading to low
Slide 44: Business Environment - Polymer Deltas
Business Environment - Polymer Deltas Polymer Deltas ($/MT) – 1Q FY25 1. YoY Polymer deltas down on subdued global demand and firm Naphtha (+16%) prices ✓ PE and PP deltas down 17% and 16% YoY respectively 397 381 400 373 371 330 2. QoQ Polymer deltas increased with improved product prices 308 300 3
Slide 45: Business Environment - Polyester Chain Delta
Business Environment - Polyester Chain Delta Polyester Chain Delta ($/MT) – 1Q FY25 1. YoY polyester chain delta down 15% ✓ Weak global demand and slower China demand recovery 600 574 2. QoQ polyester chain delta increased marginally 1% 486 489 ✓ Improvement in PX margins due to planned and unplanne
Slide 46: O2C Operating Performance
O2C Operating Performance 1Q FY25 4Q FY24 1. Primary and major secondary units throughput maximized Feedstock (Vol in MMT) 2. Advantaged crude sourcing to minimize feedstock cost Throughput 19.8 19.8 3. Domestic fuel sale maximized with improved demand and unplanned outages Production meant for sale
Slide 47: O2C Business Dynamics
O2C Business Dynamics Demand and Margin Environment 1. Global oil demand growth expected to normalize at 1 mb/d YoY in 2024 after strong growth of 2.1 mb/d in 2023 2. Fuel markets could tighten in near term due to ✓ US driving season demand (~0.3 mb/d) and stronger recovery in international aviation
Slide 48: Summary
Summary 48
Slide 49: Summary
Summary 1. Strong operating quarter; overall earnings growth impacted by weak O2C 2. Energy business ✓ Fuel markets to remain supported by seasonal demand drivers for gasoline, further upside to aviation fuel demand; potential weather and geopolitical disruptions could further tighten fuel market ✓
Slide 50: Thank You
Thank You 50