Reliance FY24 Annual Earnings Summary
4 quarters covered · ₹15,04,000 Cr revenue · ₹1,36,899 Cr PAT · 0.0% average EBITDA margin.
Quarter-by-quarter progression
Management promises made during the year
Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q2 FY24Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q2 FY24Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q2 FY24Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q3 FY24Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q3 FY24Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q3 FY24Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q4 FY24Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q4 FY24Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q4 FY24Risks flagged during the year
Petrochemical margins remain weak due to China supply overhang and subdued global demand, with PVC deltas down 35% YoY.
Q3 FY24 · highPolymer and PVC deltas declined 4-17% YoY due to global oversupply and weak China demand; management expects continued pressure.
Q4 FY24 · highGlobal petrochemical deltas are at multi-decade lows due to supply overhang, which could pressure O2C earnings.
Q1 FY24 · mediumVoluntary oil production cuts by OPEC+ could keep crude prices elevated, potentially impacting demand and refining margins.
Q1 FY24 · mediumNet profit declined 6% YoY despite EBITDA growth, driven by higher depreciation and finance costs from accelerated capex.
Q1 FY24 · mediumGlobal LNG prices have declined due to high storage and sluggish demand, potentially impacting KG-D6 realizations despite long-term contracts.
Q2 FY24 · mediumWeak global demand and excess supply in petrochemicals could pressure O2C margins, especially in PE and PP.
Q2 FY24 · mediumGas prices are sensitive to winter severity; a mild winter could lower prices, impacting upstream earnings.
Q3 FY24 · mediumARPU remained flat sequentially at INR 181.7 as free 5G data usage offsets mix improvement; monetization timeline uncertain.
Q3 FY24 · mediumMajor shutdown of CDU, coker, FCCU, and ROGC units reduced throughput and profitability; similar events could recur.
Q3 FY24 · mediumCeiling price for KG-D6 gas fell from $12.12 to $9.96/MMBtu, partially offsetting volume gains; further cuts possible.
Q4 FY24 · mediumOPEC+ production cuts, Middle East tensions, and Russia-Ukraine conflict create uncertainty in oil prices and refining margins.
What changed through the year
Q1 FY24 · Pan-India 5G rollout completion by December 2023
Management confirmed the 5G rollout is ahead of schedule and will be completed before end of calendar year 2023.
Q1 FY24 · KG-D6 gas production target of 30 MMSCMD in FY24
Production is ramping up and expected to reach 30 million standard cubic meters per day during FY24.
Q1 FY24 · JioBharat device deployment of 1 million units
Initial deployment of about a million JioBharat devices through own offering and OEM partners to target 2G-to-4G migration.
Q1 FY24 · Home broadband target of 100 million homes
Accelerating home broadband ambitions to connect 100 million homes in the quickest possible timeframe using JioFiber and JioAirFiber.
Q2 FY24 · 5G rollout completion by end of FY24
Management expects the fast-track 5G rollout to be completed by end of this year, with CapEx peaking in FY24.
Q2 FY24 · KG-D6 production target of 30 MMSCMD
KG-D6 gas production is on track to reach 30 million standard cubic meters per day, representing ~30% of India's gas output.
Q2 FY24 · Jio AirFiber to accelerate home broadband
AirFiber fixed wireless service is being rolled out across India, targeting north of 100 million premises rapidly.
Q2 FY24 · Retail EBITDA margin expansion expected
Retail EBITDA margin improved 70 bps YoY to 8.1%, with operating leverage expected to drive further gains.
Q3 FY24 · O2C margins to remain volatile but refining margins constructive
Management expects refining margins to remain favorable due to strong demand for jet fuel and gasoil, but downstream chemical margins pressured by global oversupply.
Q3 FY24 · Retail margin expansion to continue via operating leverage
EBITDA margin improved 40 bps YoY to 8.1%; management expects further expansion as infrastructure investments pay off.
Q3 FY24 · Capex moderation to continue
Q3 capex at INR 30,000 crore, down from INR 39,000 crore in Q2; cash profits now exceed capex, supporting deleveraging.
Q3 FY24 · New energy facilities to commence in phases from end of FY24
On track to start new energy production facilities in phases starting end of this fiscal year.
Q4 FY24 · KG-D6 incremental production of 4-5 mmscmd in a few years
Incremental development plan approved by government to add 4-5 million standard cubic meters per day of production.
Q4 FY24 · Capex to remain below cash profits
Management indicated capex intensity is lower and will be below cash profits, with net debt/EBITDA at 0.65x.
Q4 FY24 · Jio 5G monetization runway
30% of data traffic on 5G is currently free; monetization offers a larger growth runway.