Reliance Industries Limited · NSE:RELIANCE
Reliance Industries — Q2 2025 Earnings Presentation
53 slides from Reliance Industries's earnings presentation, Oct 14, 2024
Slide 1: 2Q FY25 Financial Results Presentation
2Q FY25 Financial Results Presentation 14 October 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: 2Q FY25 – Consolidated Highlights
2Q FY25 – Consolidated Highlights 1. Consolidated performance – Robust growth in digital services ₹ 258,027 crore 0.8% YoY and upstream segment, weak O2C REVENUE (US$ 30.8 bn) 2. Steady quarter for Retail with focus on enhancing customer proposition and strengthening capabilities ₹ 43,934 crore 3. S
Slide 5: 2Q FY25 – Retail Segment Highlights
2Q FY25 – Retail Segment Highlights 1. Revenue growth impacted by weak F&L demand, Retail (RRVL) continued focus on streamlining of operations and US$ Mn ₹ crore % YoY calibrated approach in B2B to enhance margins ✓ EBITDA margin from operations at 8.5%, up 40 bps Revenue 9,106 76,302 -1.1% 2. Scali
Slide 6: 2Q FY25 – Digital Services Segment Highlights
2Q FY25 – Digital Services Segment Highlights 1. Strong revenue growth led by scaling up of digital Digital Services (JPL) services and partial impact of tariff hike US$ Mn ₹ crore % YoY 2. EBITDA expansion driven by healthy revenue Revenue 4,430 37,119 17.7% growth EBITDA 1,901 15,931 17.8% 3. Cont
Slide 7: 2Q FY25 – O2C Segment Highlights
2Q FY25 – O2C Segment Highlights 1. EBITDA impacted by unfavorable global demand- O2C supply balance US$ Mn ₹ crore % YoY ✓ Deep ~50% correction in fuel cracks ✓ 9-24% decline in downstream chemical deltas Revenue 18,566 155,580 5.1% ✓ Soft domestic demand – Oil up 2.2%, Polymer EBITDA 1,481 12,413
Slide 8: 2Q FY25 – Oil & Gas Segment Highlights
2Q FY25 – Oil & Gas Segment Highlights 1. Robust EBITDA supported by sustained production Oil & Gas from KG D6 block and improved CBM output US$ Mn ₹ crore % YoY ✓ KG D6 volume growth led by 8.2% higher condensate/oil production Revenue 743 6,222 -6.0% ✓ 2Q FY24 included decommissioning related EBIT
Slide 9: Consolidated Financial Results: 2Q FY25
Consolidated Financial Results : 2Q FY25 US$ Mn ₹ crore % QoQ % YoY 1. Stable YoY Revenue – strong growth in Digital Revenue 30,792 258,027 0.1% 0.8% Services EBITDA 5,243 43,934 2.8% -2.0% 2. Strong contribution from upstream and digital Finance Cost 718 6,017 1.7% 5.0% services business supported
Slide 10: EBITDA Contribution (2Q FY25 vs 2Q FY24)
EBITDA Contribution (2Q FY25 vs 2Q FY24) 2Q FY25 vs 2Q FY24 - ₹ crore (YoY) 1. O2C – Weakness across fuels and chemical products with subdued demand in key markets (China, US) 44,809 3,864 43,934 ✓ Fuel cracks down 48-53%, downstream chemicals 361 2,084 deltas down 9-24% 524 20 2. Oil & Gas – sustai
Slide 11: EBITDA Contribution (2Q FY25 vs 1Q FY25)
EBITDA Contribution (2Q FY25 vs 1Q FY25) 2Q FY25 vs 1Q FY25 - ₹ crore (QoQ) 1. O2C – EBITDA marginally lower with moderation in 402 43,934 product margins 1,195 42,748 680 ✓ Favorable feedstock sourcing and improved fuel 80 189 retailing economics aided profitability 2. Oil & Gas – higher CBM volume
Slide 12: Robust Balance Sheet
Robust Balance Sheet Sep-24 Mar-24 Change US$ Mn ₹ crore ₹ crore ₹ crore Gross Debt 40,137 336,337 324,622 11,715 Cash & cash equi. 26,242 219,899 208,341 11,558 Net Debt 13,895 116,438 116,281 157 1. Maintaining balance sheet strength and flexibility 2. Focus on prudent capital allocation; robust c
Slide 13: Digital Services
Digital Services
Slide 14: Jio Has Decisive Tech Leadership In 5G (1/2)
Jio Has Decisive Tech Leadership In 5G (1/2) “Default” VoNR on TDD interference Dedicated network Innovative layer for top OEM devices mitigation slicing management Premium Jio 5G customers Innovation along with Six slices defined to deliver Layer management based enjoy: Global partners: superior ex
Slide 15: Jio Has Decisive Tech Leadership In 5G (2/2)
Jio Has Decisive Tech Leadership In 5G (2/2) 20-40% improvement in State of the art Programmable Customer experience battery life of device location accuracy networks management Spectrum bandwidth Location calculated using Innovative features: E2E automated customer assigned as per application angle
Slide 16: Jio iActivate – Self KYC For Premium Users
Jio iActivate – Self KYC For Premium Users Customer can activate new Jio SIM from comfort of home using MyJio app in few simple steps Seamless 4-step journey for instant activation 1 Aadhar based 2 Free Home Capture live photo Select plan & 3 4 identity verification delivery of SIM and video make pa
Slide 17: JioAirFiber Further Accelerates Home Connects
JioAirFiber Further Accelerates Home Connects Quarterly Wireline Connects (in million) 1.8 Pace of home connect for Jio has grown 3x over the past four quarters 1.2 Jio is the fastest growing fixed wireless 1.0 operator globally with over 2.8 million JioAirFiber connections as of Sep’24 0.6 Scale up
Slide 18: Jio Continues To Augment And Innovate Home Offering
Jio Continues To Augment And Innovate Home Offering JioTV+ app is now available for free download on all leading Smart TVs without Set Top Box or additional JioAirFiber/JioFiber connection This allows users to connect multiple TVs with one connection and access 800+ Digital TV channels and 13+ OTT a
Slide 19: Enterprise Business – Gaining Market Share
Enterprise Business – Gaining Market Share Positioning Jio as a managed services Digital portfolio (CPaaS, IoT and 01 partner with enhanced product portfolio 04 Managed Wi-Fi) added marquee logos during the quarter New account penetration with High bandwidth links contribute 02 scalable horizontal p
Slide 20: JioAICloud: India's Own Customer Data Platform
JioAICloud: India's Own Customer Data Platform JioAICloud delivers Connected Intelligence ➢ Where everyone, regardless of socio-economic background JioAICloud ➢ Can securely store all their data and digital content in the cloud ➢ And access powerful, personalized, data-powered AI services ➢ Seamless
Slide 21: JioBrain - AI Everywhere for Everyone
JioBrain - AI Everywhere for Everyone New Energy Telecom Retail & E-commerce Energy Optimization, Compliance and Network Operations, Business Applications Product Description, Chatbots, Billing & Support & AI on the Edge Review Analysis Marketing & Advertising Finance Content Creation, Market Traini
Slide 22: Quarterly Highlights
Quarterly Highlights 1 Tariff hike drives strong revenue growth and margin expansion ➢ JPL consolidated Revenue at Rs 31,709 Crore, growth of 18.0% YoY ➢ JPL consolidated EBITDA at Rs 15,931 Crore, growth of 17.8% YoY 2 Subscriber base at 478.8 million in Q2 FY’25 ➢ Limited SIM consolidation post ta
Slide 23: Strong Customer Engagement
Strong Customer Engagement Quarterly Data Traffic (Crore GBs) ARPU (Rs/sub/month) 195 4,500 177 182 3,628 2,823 2,300 144 Sep'21 Sep'22 Sep'23 Sep'24 Sep'21 Sep'22 Sep'23 Sep'24 ➢ Strong uptake of 5G and home broadband is driving robust data traffic growth of 24% YoY ➢ Improved customer engagement h
Slide 24: RJIL: Key Operating Metrics
RJIL: Key Operating Metrics Q2’FY25 Q1’FY25 Q2’FY24 Total Customer base 478.8 489.7 459.7 (million) Net Customer addition ➢ ARPU at Rs 195.1 in Q2’FY25 due to (10.9) 8.0 11.1 (million) partial flow through of tariff hike ARPU 195.1 181.7 181.7 (Rs/ month) ➢ Rapid uptake of 5G and AirFiber drives per
Slide 25: RJIL: Q2’FY25 Financials
RJIL: Q2’FY25 Financials Operating Revenue (in Rs crore) EBITDA (in Rs crore) 28,338 15,225 26,478 25,959 14,022 25,368 13,734 24,750 13,422 13,059 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 Sep-23 Dec-23 Mar-24 Jun-24 Sep-24 ➢ RJIL Operating Revenue growth of 14.5% YoY driven by partial impact of tariff hi
Slide 26: Jio Platforms Limited: Key Financials
Jio Platforms Limited: Key Financials JPL Consolidated Particulars Q2 FY25 Q1 FY25 Q2 FY24 Gross Revenue* 37,119 34,548 31,537 Operating Revenue 31,709 29,449 26,875 ➢ Q2 FY25 Revenue from operations at Rs 31,709 EBITDA 15,931 14,638 13,528 Crore; 18.0% YoY growth EBITDA Margin 50.2% 49.7% 50.3% ➢ E
Slide 27: Reliance Retail
‘an oO “ah Reliance Retail
Slide 28: Q2 FY25 Performance Highlights
Q2 FY25 Performance Highlights • Reliance Retail registered revenue of Rs. 76,302 crore; growth impacted by weak F&L demand, continued focus on streamlining of operations and calibrated approach to B2B business to improve margins • Reported EBITDA at Rs 5,850 crore; EBITDA margin at 8.8% up 30 bps Y
Slide 29: Financial Performance
Financial Performance In Rs. crore % Change % Change Q1 FY25 Parameter Q2 FY25 Q2 FY24 QoQ YoY 75,615 1% Gross Revenue 76,302 77,148 -1% 66,260 0.40% Net Revenue 66,502 68,937 -4% 5,448 4% EBITDA from Operations 5,675 5,617 1% 8.2% 30 bps EBITDA Margin from Operations (%) 8.5% 8.1% 40 bps 216 -19% I
Slide 30: Performance Highlights: Consumer Electronics
Performance Highlights: Consumer Electronics • Digital stores maintain growth momentum led by ABV growth; crosses 650 store mark • “Digital India” campaign delivered 60% YoY growth; Independence Day sales up 11% YoY • New launches, category promotions & festivals (Ganesh Chaturthi / Onam & start of
Slide 31: Performance Highlights: Fashion & Lifestyle (1/2)
Performance Highlights: Fashion & Lifestyle (1/2) Apparel & Footwear • Focused on maintaining fashion newness which is helping engagement with customers • Leveraged Independence Day sale and regional festivals like Onam, Ganesh Chaturthi and Pujo to drive footfalls and transactions • New formats con
Slide 32: Performance Highlights: Fashion & Lifestyle (2/2)
Performance Highlights: Fashion & Lifestyle (2/2) Premium Brands • Strengthened F&B portfolio with launch of first Armani Café • Focused international expansion for Hamleys underway with presence across 14 countries; launched its first ever International in-door playground in Dubai • AjioLuxe delive
Slide 33: Performance Highlights: Grocery
Performance Highlights: Grocery • Delivers steady growth led by big box formats • Successful execution of Full Paisa Vasool Sale • Registered highest ever single day sales on Independence day • Broad based growth across categories led by Confectioneries & Snacks (30% Full Paisa Vasool Sale campaign
Slide 34: Performance Highlights
Performance Highlights JioMart • Scaling up fast hyperlocal deliveries through our extensive, pan-India store network • Non-grocery categories continue to do well; AOV up 2X YoY led by electronics uptick • Expanding product range with Seller base up 46% YoY and options count up 13% YoY JioUtsav Camp
Slide 35: Oil & Gas
Reliance Industries Limited Oil & Gas
Slide 36: Oil and Gas Segment Performance – 2Q FY25
Oil and Gas Segment Performance – 2Q FY25 1. YoY revenue decline on lower gas price realization 2Q FY25 2. YoY EBITDA growth of 11% driven by US$ Mn ₹ crore % QoQ % YoY Revenue 743 6,222 0.7% -6.0% ✓ Base impact of one-time provisioning towards decommission cost for Tapti field in 2Q FY24 EBITDA 631
Slide 37: 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 28.5 10 19.3 17.4 5 6.5 0 FY21 FY22 FY23 FY24 1Q FY25 2Q FY25 RIL continues to be a material contributor to India’s gas economy 37
Slide 38: Global Gas / LNG Markets
Global Gas / LNG Markets 1. Gas/LNG prices remain elevated with strong summer demand, Historical Prices ($/mmbtu) geopolitical tensions and supply disruptions 25.0 $/ MMBtu JKM NBP TTF HH 2Q FY25 Avg 13.00 11.06 11.46 2.23 ✓ Spot LNG prices up 16% QoQ to ~$13 vs ~$11.25 in 1Q FY25 20.0 ✓ LNG Termina
Slide 39: India Gas Market
India Gas Market 40 $/MMBtu 1. India gas demand growth resilient to elevated global 32.59 prices 30 2. LNG imports increased 28% in 2Q FY25 20 10.53 ✓ Higher demand from CGD & gas-based power 10 5.61 12.46 9.87 10.16 generation 2.39 0 3. Ceiling price applicable for KGD6 revised upward to ~$10.16/MM
Slide 40: Oil to Chemicals (O2C)
Reliance Industries Limited Oil to Chemicals (02C)
Slide 41: O2C Financial Performance
O2C Financial Performance YoY US$ Mn (₹ crore) % QoQ % YoY 1. EBITDA lower due to sharp correction in margins across Revenue 18,566 155,580 -1.0% 5.1% key products EBITDA 1,481 12,413 -5.2% -23.7% ✓ Fuel cracks fell sharply from elevated levels in 2Q FY24 due to supply disruptions EBITDA Margin (%)
Slide 42: O2C Operating Performance
O2C Operating Performance 2Q FY25 1Q FY25 1. FCC debottlenecking for incremental throughput and high Feedstock severity operation completed, benefiting margins (Vol in MMT) Throughput 20.2 19.8 2. Ensured dynamic optimization of PX vs. Gasoline to capture the market opportunity in the volatile marke
Slide 43: Energy Market Environment
Energy Market Environment Brent Crude ($/bbl) 1. Avg. Brent crude prices fell 7.6% YoY & 5.6% QoQ to 100 $80.2/bbl 80 ✓ Lower oil demand growth coupled with rising 60 supply from non-OPEC suppliers 40 2Q FY25 Avg - $80.2 1Q FY25 Avg - $84.9 2. US Ethane price averaged at 16 cpg for 2QFY25, 20 down 4
Slide 44: Global Oil Demand
Global Oil Demand 120 103.2 102.9 103.9 1. Global oil demand in 2Q FY25 up 0.8 mb/d YoY (vs 2.5 90 mb/d in 2Q FY24) mb/d 60 30 ✓ Asia ex-China ( 0.4 mb/d), OECD Americas ( 0.2 0 mb/d) 2QFY24 1QFY25 2QFY25 2. Transportation fuel demand growth remained firm 40 ✓ Gasoline up 0.35 mb/d – led by Middle
Slide 45: Domestic Environment – Oil Demand
Domestic Environment – Oil Demand Domestic Oil Demand 1. Oil demand at 56.6 MMT, up 2.2% YoY and down by 7.5% In MMT QoQ 28 24.3 2. Gasoline demand up 7.3% YoY 24 20.0 20.1 20 ✓ Growth in personal mobility along with 2W sales 16 3. HSD demand marginally up YoY 12 9.1 10.0 9.8 ✓ Economic and agricult
Slide 46: Domestic Polymers and Polyester Demand
Domestic Polymers and Polyester Demand Polymer Demand YoY (2Q FY25) Polyester Demand YoY (2Q FY25) 5% 3% 5% 0% 0% 0% -5% -5% -10% -5% -9% -5% -10% -7% -15% -12% -10% PE PP PVC Polymer PSF PFY PET Polyester 1. Polymer demand down 5% YoY, at 5.0 MMT 1. Polyester demand down 7% YoY, at 1.7 MMT ✓ PVC de
Slide 47: Regional Transportation Fuels Cracks
Regional Transportation Fuels Cracks Product Cracks Gasoil 1. YoY cracks declined from elevated levels due to subdued 35 global demand amid weak economic conditions in China and the US 30 28.8 26.1 2. QoQ decline largely led by seasonal factors and lower 25 industrial activity in China 20 ATF/Kero $
Slide 48: Regional Polymer Deltas
Regional Polymer Deltas Polymer Deltas ($/MT) – 2Q FY25 1. YoY Polymer deltas down on weak global demand and firm feedstock naphtha (+5%) prices 460 ✓ PE and PP deltas down 9% and 1% respectively as producers 400 371 were unable to pass on high feedstock prices 335 330 347 304 318 297 293 ✓ PVC delt
Slide 49: Regional Polyester Chain Delta
Regional Polyester Chain Delta Polyester Chain Delta ($/MT) – 2Q FY25 1. YoY polyester chain delta down 9% with sharp 37% decline in PX deltas ✓ Drop in PX delta due to firm Naphtha prices and slow 600 recovery in downstream demand 524 489 475 ✓ Recovery in downstream polyester deltas supported chai
Slide 50: O2C Business Dynamics
O2C Business Dynamics Demand and Margin Environment 1. Global oil demand growth expected to be less than 1 mb/d YoY in 2024 and 2025 after strong growth of 2.1 mb/d in 2023 2. Fuel markets could tighten in near term ✓ Refinery run cuts expected in Europe and Asia in 3Q FY25 amid weak margins ✓ Globa
Slide 51: Summary
Summary 51
Slide 52: Summary
Summary 1. Resilient earnings delivery at consolidated level ✓ Strong upstream and digital services business largely offset muted O2C earnings 2. Strength in operational cash-flow generation underpin robust balance sheet and liquidity 3. Energy business ✓ Elevated price and margin volatility with es
Slide 53: Thank You
Thank You 53