Reliance Industries Limited · NSE:RELIANCE
Reliance Industries — Q3 FY2023 Earnings Presentation
56 slides from Reliance Industries's earnings presentation, Jan 20, 2023
Slide 1: Exchange filing cover letter
January 20, 2023 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers Exchange Plaza, Plot No. C/1, G Block Dalal Street Bandra-Kurla Complex, Mumbai 400 001 Bandra (East), Mumbai 400 051 Scrip Code: 500325 Trading Symbol: RELIANCE Dear Sirs, Sub: Presentation made to analy
Slide 2: 3Q FY23 Financial Results Presentation
3Q FY23 Financial Results Presentation 20 January 2023 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 FY23 – Highlights
3Q FY23 – Highlights 1. Consolidated EBITDA at ₹ 38,460 crore, up 13.5% YoY led by consumer businesses and upstream 2. O2C earnings improved with firm middle distillate cracks; margin pressure on downstream chemicals 3. Robust Retail Revenue and EBITDA - store expansion, higher footfalls during fest
Slide 6: 3Q FY23 – Key Segment Highlights (1/2)
3Q FY23 – Key Segment Highlights (1/2) 1. Revenue up 17% YoY; EBITDA up 25% YoY with 70 bps margin improvement Retail 2. Total store count at 17,225; added 789 new stores in 3Q FY23 3. >200 Mn footfalls across formats, up 26% YoY Revenue ₹ 67,634 crore 4. Registered customer base at 235 Mn, up 31% Y
Slide 7: 3Q FY23 – Key Segment Highlights (2/2)
3Q FY23 – Key Segment Highlights (2/2) 1. Revenue up 10% YoY; EBITDA up 3% YoY O2C 2. Strength in middle distillate cracks supported segment earnings, constrained by ✓ Weak margins across polymer, polyester chain and light distillates Revenue ₹ 144,630 crore ✓ 4.6% lower throughput with planned M&I
Slide 8: Consolidated Financial Results : 3Q FY23
Consolidated Financial Results : 3Q FY23 Change Change 1. YoY strong Revenue and EBITDA growth (₹ crore) 3Q FY23 QoQ YoY ✓EBITDA growth led by Digital Services, Oil & Gas and Retail segment Revenue 240,963 -4.9% 14.8% ✓Positive contribution from O2C despite weak downstream EBITDA 38,460 11.0% 13.5%
Slide 9: Contributing Factors to Change in EBITDA (YoY)
Contributing Factors to Change in EBITDA (YoY) 3Q FY23 vs 3Q FY22 - ₹ crore (YoY) 1. Better refining economics supported O2C segment 2,670 1,290 ✓ Weak downstream chemical margins and lower 38,460 951 volumes constrained earnings 1,847 2. Oil & Gas segment nearly doubled earnings on stable 33,886 39
Slide 10: Contributing Factors to Change in EBITDA (QoQ)
Contributing Factors to Change in EBITDA (QoQ) 3Q FY23 vs 2Q FY23 - ₹ crore (QoQ) 1. O2C segment supported by strength in middle distillate cracks 609 149 38,460 709 372 ✓ Weak polymer (5-18%) and polyester (19%) 1,958 margins weighed on profitability 34,663 2. Oil & Gas segment maintained stable pr
Slide 11: Robust Balance Sheet
Robust Balance Sheet (₹ crore) Dec-22 Sep-22 Gross Debt 303,530 294,859 Cash & cash equivalent 193,282 201,606 Net Debt 110,248 93,253 1. Change in net debt largely attributable to capex funding ✓ Accelerated capex towards 5G roll-out, ramp-up in retail operations 2. Proactive liability management t
Slide 12: Digital Services
Digital Services 11
Slide 13: 5G Coverage Leadership Established
5G Coverage Leadership Established 134 cities launched across 18 telecom circles >25k sites deployed with six sectors Consistent experience of >600 Mbps 5G Launch Towns (134) Telecom Circle Boundary State Boundary Committed to complete pan India 5G rollout by December 2023 12
Slide 14: JioAirFiber - Reimagining the Future of Homes with 5G
JioAirFiber - Reimagining the Future of Homes with 5G Enabling Smart Homes with 5G Home Broadband Connected TV Smart Home Services • Seamless Wi-Fi 6 • Live TV with • Cloud PC Work and coverage interactive multi- Study • Fixed Mobile party conferencing • Smart Home with Convergence • OTT services IO
Slide 15: JPL Powered JioCinema Technology For FIFA WC
JPL Powered JioCinema Technology For FIFA WC Metrics underlining scale & strength 114M+ ~80% Total Viewership Mobile Viewership 12M+ Peak Concurrency (per sec) 34M 21Tbps Peak DAUs Peak Traffic Utilisation Highest DAU and peak concurrency in India 14
Slide 16: JioFiber – Scaling Up Rapidly
JioFiber – Scaling Up Rapidly ➢ Jio is consistently leading industry net adds for fixed broadband at home ➢ Quality of subscribers improving with higher mix of postpaid and STB users ➢ A channel for faster rollout in small to mid-sized towns with lower build-out and customer acquisition cost by leve
Slide 17: Pivoting To Industry Specific Propositions
Pivoting To Industry Specific Propositions 1 Hospitality 2 BFSI 3 Contact 4 Coaching 5 Warehouse Centers Institutes Room as a service - offering Single vendor-led integrated Offering e2e solution covering Offering suite of Leaning Warehouse in Box - offering connectivity, room Branch as a Service of
Slide 18: Jio’s Server Design For Edge Pro Server
Jio’s Server Design For Edge Pro Server Temperature Hardened Design ➢ Jio’s Multi-Access Edge Compute (MEC) rack with Intelligent Edge Server Platform is a differentiated Jio MEC Rack and cloud-ready solution, coupled with central management platforms ➢ Jio MEC server can be used to create non-air-
Slide 19: Quarterly Highlights
Quarterly Highlights 1 Continued strong financial performance by Jio Platforms Limited ➢ Consolidated Revenue at Rs 24,892 crore, growth of 20.9% YoY ➢ Consolidated EBITDA at Rs 12,519 crore, growth of 25.1% YoY 2 Healthy subscriber traction with total subscriber base of 432.9 million as of December
Slide 20: Consistent Increase in Jio Subscriber Base
Consistent Increase in Jio Subscriber Base Jio Customer base (m) 433 Overall subscriber market share leadership 428 continues to grow with gains across mobility 420 and wireline 410 Net gains on MNP continue Market share in overall broadband is well over Mar-22 Jun-22 Sep-22 Dec-22 50% 5G rollout an
Slide 21: RJIL: Key Operating Metrics
RJIL: Key Operating Metrics 3Q’ 22-23 2Q’ 22-23 3Q’ 21-22 Total Customer base ➢ Healthy gross addition and net customer 432.9 427.6 421.0 (million) addition of 34.2 million and 5.3 million, Net Customer addition (million) 5.3 7.7 (8.4) respectively ARPU 178.2 177.2 151.6 ➢ ARPU grows 17.5% YoY to Rs
Slide 22: RJIL: Key Financials
RJIL: Key Financials Operating Revenue (in Rs crore) EBITDA (in Rs crore) 22,521 22,998 11,601 12,072 21,873 20,901 11,046 10,554 19,347 9,669 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 Dec-21 Mar-22 Jun-22 Sep-22 Dec-22 ➢ RJIL revenue up 18.9% YoY ➢ EBITDA margins increase to 52.5% leading to EBITDA growth
Slide 23: Jio Platforms Limited: Key Financials
Jio Platforms Limited: Key Financials JPL Consolidated 3Q’ 22-23 2Q’ 22-23 3Q’ 21-22 ➢ Operating revenue growth at 20.9% Gross Revenue* 29,195 28,506 24,176 YoY driven by consistent subscriber Operating Revenue 24,892 24,275 20,597 additions and ARPU increase EBITDA 12,519 12,011 10,008 EBITDA Margi
Slide 24: Reliance Retail
Reliance Retail 23
Slide 25: Operating Context
Operating Context 1. Operating environment maintained at normative levels as impact of covid wanes 2. Highest ever footfall at 201 million across consumption baskets 3. Growth across stores and digital commerce channels with normalization of consumer spending habits 4. Consumer sentiment cautiously
Slide 26: 3Q FY23: Key Messages
3Q FY23: Key Messages 1. Business maintains revenue growth momentum with broad based growth across consumption baskets 2. Operating leverage and efficiencies drive EBITDA margin improvement 3. Serving customers at scale – registered customers at 235 million, up 30% YoY 4. Customer engagement grows 3
Slide 27: Revenue: Steady Growth
Revenue: Steady Growth 1. Business continues steady growth across consumption baskets, up Gross Revenue Rs Crores 17% YoY ✓ Grocery grows 65% YoY 67,623 57,714 ✓ Consumer Electronics excl. Devices grows 45% YoY 37,845 ✓ Fashion and Lifestyle grows 13% YoY; impacted by delay in winter ✓ Digital + New
Slide 28: Profit: Resilient Delivery
Profit: Resilient Delivery EBITDA Rs Crores 1. EBITDA performance; up 25% YoY ✓ EBITDA margin at 7.9%, up 40 bps YoY 4,773 3,822 3,087 2. EBITDA margin from operations at 7.7%, up 70 bps YoY 3Q 3Q 3Q FY21 FY22 FY23 Favorable mix, operating leverage and efficiencies drives margin expansion 27
Slide 29: Scale up Across Channels
Scale up Across Channels Store Count Warehouse and Fulfilment (mn sq ft) Workforce (‘000) 1.5x 17,225 418 3x 33.6 3.4x 14,412 285 12,201 17.2 188 11,316 10.6 12.4 124 3Q FY20 3Q FY21 3Q FY22 3Q FY23 3Q FY20 3Q FY21 3Q FY22 3Q FY23 3Q FY20 3Q FY21 3Q FY22 3Q FY23 Serving customers Pan-India 28
Slide 30: Financial Summary
Financial Summary In Rs Crore % Growth % Growth 2Q FY23 Parameter 3Q FY23 3Q FY22 Q-o-Q Y-o-Y 64,920 4% Gross Revenue 67,623 57,714 17% 57,694 4% Net Revenue 60,096 50,654 19% 4,286 9% EBITDA from Operations 4,657 3,522 32% 7.4% +30 bps EBITDA Margin from Operations (%) 7.7% 7.0% +70 bps 118 -2% Inv
Slide 31: Performance Highlights – Consumer Electronics
Performance Highlights – Consumer Electronics 1. Highest quarterly performance by stores, driven by higher footfalls and ABVs 2. Market leading performance during Diwali, ~40%YoY led by offers and financing schemes 3. Double digit growth across Phones, TV and Appliances 4. Digital Commerce revenue c
Slide 32: Performance Highlights – Fashion & Lifestyle (1/3)
Performance Highlights – Fashion & Lifestyle (1/3) Apparel & Footwear 1. Offline business posts best quarter led by festivals and wedding season 2. Broad-based growth across categories – Men’s formals, women’s Indian wear, kids wear, footwear does well 3. Continued focus on strengthening own brands;
Slide 33: Performance Highlights – Fashion & Lifestyle (2/3)
Performance Highlights – Fashion & Lifestyle (2/3) Partner Brands 1. Sustained performance with 38% YoY revenue growth; mall stores continue to drive traffic 2. AJIO Luxe booked revenue up 3x YoY; over 470 brands with 45k+ options live 3. Strengthened omnichannel experience; launched mono-brand site
Slide 34: Performance Highlights – Fashion & Lifestyle (3/3)
Performance Highlights – Fashion & Lifestyle (3/3) Lingerie 1. Revenue growth at 62% YoY across brand portfolio - Zivame, Amante, Clovia 2. Continued focus on retail expansion through SIS and EBOs 3. Strengthens product portfolio, launched curvy styles, maternity range, minimisers, latch brief Urban
Slide 35: Performance Highlights – Grocery
Performance Highlights – Grocery Offline and Digital Commerce 1. Grocery stores maintains growth momentum with double-digit LFL growth 2. Strong customer engagement through Bestival festive sale; sets new high with revenue up 74% YoY 3. Premiumization of assortment improves customer experience and d
Slide 36: Performance Highlights – Consumer Brands
Performance Highlights – Consumer Brands 1. Consumer brands grows ~2X, all categories perform well 2. Focus on catering to regional tastes; new variants launched in processed foods, beverages and spices ✓ Launched Runner Energy Drink in 6 flavors; Joyland Masala Kairi (confectionary) 3. Independence
Slide 37: Performance Highlights – Jiomart
Performance Highlights – Jiomart 1. Broad based growth across all town classes; Tier II and beyond towns growing fastest 2. ‘JioMart on Whatsapp’ expands active customer base 37% MoM, orders up 9x since launch 3. Catalogue expanded by 71% QoQ; Uptick in non-grocery category contribution 4. Seller ba
Slide 38: Performance Highlights – Pharma
Performance Highlights – Pharma 1. Revenue up ~2x YoY driven by growth across all channels 2. Digital commerce orders up 67% YoY; hyperlocal grows ~4x YoY 3. Successful execution of marketing events drive customer engagement and traffic 4. New Commerce revenues up 5x YoY; operations expanded to 2,60
Slide 39: Oil & Gas
Oil & Gas Oil & Gas 38
Slide 40: Oil and Gas Segment Performance – 3Q FY23
Oil and Gas Segment Performance – 3Q FY23 change change 1. Robust EBITDA growth on QoQ and YoY (in ₹ Crore) 3Q FY23 QoQ YoY basis Revenue 4,474 16.1% 74.8% 2. 14.8% higher KGD6 gas price realization on EBITDA 3,880 22.4% 90.9% QoQ supported EBITDA growth EBITDA Margin (%) 86.7% +440 bps +730 bps 3.
Slide 41: KGD6 - MJ Project on Track
KGD6 - MJ Project on Track 1. Phase-II Drilling & Completion campaign for Production hole drilling, Lower & Upper Completions in progress 2. Floating Production Storage and Offloading (FPSO) currently in field location 3. FPSO hook-up and offshore testing currently underway, to be followed by pre-co
Slide 42: Global Gas/LNG Outlook
Global Gas/LNG Outlook 1. Global Gas/LNG prices cool off ✓ Mild weather, consumption curbs, muted Asia demand softened gas market ✓ Global LNG demand grew by ~3.8% in 2022 led by Europe ✓ China LNG imports down to ~69 MMT in 2022 v/s 80 MMT in 2021 ✓ European gas Storages at 83% currently (v/s 5-yea
Slide 43: Oil to Chemicals (O2C)
Oil to Chemicals (O2C) 42
Slide 44: Energy Markets Softened QoQ
Energy Markets Softened QoQ 1. Avg. crude prices declined 12% QoQ to $88.7/bbl Brent Crude ($/bbl) 140 ✓ Demand concerns on recession fear in EU and USA ✓ Better-than-expected Russian supply 110 2. LNG prices declined 34% QoQ to $30.7/MMbtu 80 ✓ Europe well stocked ahead of winter (at 95% of storage
Slide 45: O2C Operating Performance (in ₹ Crore)
O2C Operating Performance change change 1. YoY segment performance led by (in ₹ Crore) 3Q FY23 QoQ YoY ✓ Continued strength in middle distillate cracks Revenue 144,630 -9.4% 10.0% ✓ Advantaged feedstock sourcing EBITDA 13,926 16.4% 2.9% 2. Segment performance constrained by EBITDA Margin (%) 9.6% +2
Slide 46: Business Environment (3Q FY23) - Demand and Utilization
Business Environment (3Q FY23) - Demand and Utilization 1. Global oil demand declined marginally on YoY Global Oil Demand India Oil Demand ✓ Slower demand from OECD countries offset resilient 100.5 mb/d 56.9 MMT demand from Middle East, Africa and Asia (excl. China) 0.4 mb/d YoY 7% YoY ✓ High ga
Slide 47: Domestic Environment 3Q FY23 – Oil Demand
Domestic Environment 3Q FY23 – Oil Demand In MMT Domestic Oil Demand 1. Oil demand at 56.9 MMT, up 7% YoY and 8.1% QoQ 24.0 22.52 2. Gasoline demand up 7.7% YoY with 21.0 20.44 ✓ Higher automobile sales 19.24 18.0 ✓ Continuing momentum in tourism, increased mobility in 15.0 festive season 12.0 3. HS
Slide 48: Domestic Environment – Polymers and Polyester Demand
Domestic Environment – Polymers and Polyester Demand Polymer India Demand Growth YoY 1. Polymer demand up 8% YoY 30% 25% 25% ✓ PVC demand improved 25% led by healthy pipes 20% demand from agriculture and infrastructure segment 15% 8% 10% 4% 4% ✓ PP and PE demand improved with demand growth from 5% i
Slide 49: Business Environment – Polymers and Polyester Chain Deltas
Business Environment – Polymers and Polyester Chain Deltas Polymer Deltas ($/MT) 1. QoQ polymers deltas down 5%-18% 586 600 522 ✓ Polymers prices declined 7%-15% due to lower global demand 443 429 409 400 365 357 ✓ Margin contraction led by decline in product prices with 327 292 relatively stable fe
Slide 50: Regional Business Environment – Transportation Fuels
Regional Business Environment – Transportation Fuels Gasoil (10 ppm) Cracks Gasoil 50 41.1 41.5 540 1. Global demand up ~0.5 mb/d QoQ to 29 mb/d - led by Asia 40 536.0 524.0 2. Cracks remained elevated in 3Q FY23 Mn bbls 30 $/bbl 20 517.0 510 ✓ High gas prices and strike in French refineries pushed
Slide 51: Regional Business Environment – Transportation Fuels
Regional Business Environment – Transportation Fuels Gasoline Gasoline 92R Cracks 1. Global gasoline demand declined by ~0.5 mb/d QoQ to 25.8 15 12.9 mb/d with seasonally lower demand in Europe and US 455 460 10 8.9 ✓ India demand growth remained positive at 2.3% QoQ Mn bbls 436 $/bbl 5.1 430 2. Gas
Slide 52: O2C Operating Highlights
O2C Operating Highlights Feedstock 3Q FY23 2Q FY23 1. Throughput normalized after planned M&I shutdown of primary (Vol in MMT) and secondary units in Sep-Oct’22 Throughput 18.8 18.6 2. Strong OSPs altering crude sourcing, trade flows 3. Gasoil export netback maximized capturing market arbitrage Prod
Slide 53: O2C Business Dynamics
O2C Business Dynamics 1. Global oil demand estimated to grow by 1.9 mb/d in 2023 – led by US, China and India Demand 2. China demand expected to improve with relaxation in Covid related restrictions 3. India Polyester and Polymer demand expected to track economic growth 1. Effective net global refin
Slide 54: Summary
Summary 53
Slide 55: Summary
Summary 1. Robust earnings growth with all operating segments delivering higher contribution 2. Proactive resource management helped contain impact of hike in policy rates by Central Banks 3. Tight refined product markets offset weakness in regional downstream chemical margins 4. Strong growth momen
Slide 56: Thank You
Thank You 55
Reliance Industries — Q3 FY2023 Earnings Presentation on 6ix