Jio Subscriber Net Additions
11.1M
+32M YoY
Jio added 11.1 million subscribers in Q2, reaching 459.7 million total, with positive net adds vs industry losses.
RELIANCE
Conglomerate
27 Oct 2023
Reliance Industries Ltd — Q2 FY24
Reliance Industries delivered a record consolidated EBITDA of INR 45,000 crore in Q2 FY24, up 30% YoY, driven by strong performance across all segments.
Financial stats pending filing verification
2-Minute Summary
✦ AI-Generated from Full Transcript
Reliance Industries delivered a record consolidated EBITDA of INR 45,000 crore in Q2 FY24, up 30% YoY, driven by strong performance across all segments. Consumer businesses (Jio and Retail) posted robust growth, with Jio adding 11.1 million subscribers and Retail EBITDA growing 32% YoY. O2C benefited from firm fuel cracks and domestic demand, while Oil & Gas EBITDA surged 50% on KG-D6 ramp-up. Management guided for CapEx to peak in FY24 with 5G rollout completion by year-end, and expects continued earnings momentum in consumer businesses. Key risks include global demand weakness impacting O2C margins and potential gas price volatility.
रिलायंस इंडस्ट्रीज ने Q2 FY24 में 45,000 करोड़ रुपये का रिकॉर्ड EBITDA (कमाई) हासिल किया, जो पिछले साल से 30% ज़्यादा है। इसकी वजह सभी कारोबारों का मज़बूत प्रदर्शन रहा। जियो ने 1.11 करोड़ नए ग्राहक जोड़े और रिटेल का EBITDA 32% बढ़ा। तेल-रसायन (O2C) को मज़बूत माँग से फ़ायदा हुआ, जबकि गैस कारोबार का EBITDA KG-D6 से 50% उछला। कंपनी का कहना है कि 5G रोलआउट पूरा होने से इस साल खर्च चरम पर होगा, और उपभोक्ता कारोबारों से कमाई बढ़ती रहेगी। जोखिम: दुनिया भर में कमज़ोर माँग से O2C मार्जिन पर असर पड़ सकता है और गैस की कीमतों में उतार-चढ़ाव हो सकता है।
Key Numbers
Jio ARPU
INR 181.7
+3.5% YoY
ARPU grew steadily due to improved subscriber mix and higher data consumption, despite no 5G charging yet.
Retail Footfall Growth
41% YoY
+41pp YoY
Retail footfalls grew 41% YoY, driven by festive demand and store expansion (471 new stores).
KG-D6 Gas Production
20.3 MMSCMD
+1.3 MMSCMD YoY
KG-D6 production averaged 20.3 MMSCMD, up from 19 MMSCMD last year, with ramp-up to 30 MMSCMD on track.
What Changed vs Last Quarter
NEW
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.
NEW
Jio AirFiber to accelerate home broadband
AirFiber fixed wireless service is being rolled out across India, targeting north of 100 million premises rapidly.
NEW
Retail EBITDA margin expansion expected
Retail EBITDA margin improved 70 bps YoY to 8.1%, with operating leverage expected to drive further gains.
UPDATED
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.
DROPPED
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.
DROPPED
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.
DROPPED
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.
NEW RISK
Global demand weakness impacting O2C margins
Weak global demand and excess supply in petrochemicals could pressure O2C margins, especially in PE and PP.
NEW RISK
Competitive pressure in telecom from 5G
Competitors' 5G rollouts, though less extensive, could intensify competition; Jio's net adds remain positive but market dynamics could shift.
NEW RISK
Retail store expansion execution risk
Rapid store expansion (471 new stores in Q2) may strain operational efficiency and working capital if demand softens.
RISK GONE
O2C margin pressure from global oversupply
Petrochemical margins remain weak due to China supply overhang and subdued global demand, with PVC deltas down 35% YoY.
RISK GONE
Elevated crude prices from OPEC+ cuts
Voluntary oil production cuts by OPEC+ could keep crude prices elevated, potentially impacting demand and refining margins.
RISK GONE
Higher finance costs and depreciation
Net profit declined 6% YoY despite EBITDA growth, driven by higher depreciation and finance costs from accelerated capex.
Management Guidance
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.
Management guidance capexKG-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.
Management guidance growthJio AirFiber to accelerate home broadband
AirFiber fixed wireless service is being rolled out across India, targeting north of 100 million premises rapidly.
Management guidance expansionRetail EBITDA margin expansion expected
Retail EBITDA margin improved 70 bps YoY to 8.1%, with operating leverage expected to drive further gains.
Management guidance marginsKey Risks
Global demand weakness impacting O2C margins
Weak global demand and excess supply in petrochemicals could pressure O2C margins, especially in PE and PP.
medium · management_commentaryGas price volatility from winter severity
Gas prices are sensitive to winter severity; a mild winter could lower prices, impacting upstream earnings.
medium · management_commentaryCompetitive pressure in telecom from 5G
Competitors' 5G rollouts, though less extensive, could intensify competition; Jio's net adds remain positive but market dynamics could shift.
low · analyst_questionRetail store expansion execution risk
Rapid store expansion (471 new stores in Q2) may strain operational efficiency and working capital if demand softens.
low · data_observationNotable Quotes
It was a quarter of the EBITDA as a record that almost INR 45,000 crore, which is about $5.4 billion. It was up 30% year-on-year.
More than 85% of the 5G cells deployed in the country today are from Jio.
We had the best ever Independence Day sale, which was for consumer electronics, which recorded a 23% growth.
Frequently Asked Questions
What was Reliance's revenue in Q2 FY24?
Reliance reported revenue of ₹2,56,000 Cr in Q2 FY24, representing a 0% change compared to the same quarter last year.
What guidance did Reliance management give for FY25?
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. 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. Jio AirFiber to accelerate home broadband: AirFiber fixed wireless service is being rolled out across India, targeting north of 100 million premises rapidly. Retail EBITDA margin expansion expected: Retail EBITDA margin improved 70 bps YoY to 8.1%, with operating leverage expected to drive further gains.
What are the key risks for Reliance in FY25?
Key risks include Global demand weakness impacting O2C margins — Weak global demand and excess supply in petrochemicals could pressure O2C margins, especially in PE and PP.; Gas price volatility from winter severity — Gas prices are sensitive to winter severity; a mild winter could lower prices, impacting upstream earnings.; Competitive pressure in telecom from 5G — Competitors' 5G rollouts, though less extensive, could intensify competition; Jio's net adds remain positive but market dynamics could shift.; Retail store expansion execution risk — Rapid store expansion (471 new stores in Q2) may strain operational efficiency and working capital if demand softens..
Did Reliance meet its previous quarter's guidance?
Of 3 tracked promises, management 0 met, 0 close, 3 missed.
Where can I read the full Reliance Q2 FY24 concall transcript?
The full earnings conference call transcript or source release is available on the linked source material. This page provides an AI-generated summary with filing verification status shown on the financial stats.