Reliance Industries Limited (RIL) has once again surpassed market expectations with a net profit of ₹17,265 crore, marking a 10% increase compared to the corresponding quarter of the previous year. This remarkable growth comes as a surprise to analysts, considering the anticipated decline in profits due to the planned shutdown of refining plants during the quarter. RIL’s operating margin also saw an expansion, reaching 18.1%, up from 17.7% in the previous quarter and 16.2% a year ago.

Revenue Growth and Cost Management

Despite modest revenue growth of ₹2.3 lakh crore during the quarter, RIL’s profit growth is commendable, especially in the face of rising costs. Finance costs rose by 11.3% year-on-year to ₹5,789 crore, primarily due to increased loan balances and higher interest rates. Additionally, the tax outgo surged by 22.1% year-on-year to ₹6,345 crore. Notably, RIL’s consumer businesses, particularly digital commerce and new commerce, continue to drive topline growth, contributing 19% of revenues.

Stellar Performance of Consumer Businesses

The consumer-facing businesses remain the highlight of RIL’s performance in the third quarter. Mukesh D. Ambani, Chairman and Managing Director of Reliance Industries, attributed the robust operating and financial performance to the exceptional efforts of teams across various businesses. RIL reported an EBITDA of ₹40,656 crore, showing significant growth compared to the previous year.

Segmental Analysis

While revenue from the Oil-to-Chemicals (O2C) segment declined by 2.4% due to lower price realizations, the Oil & Gas segment witnessed significant revenue growth, primarily driven by higher volumes. Planned maintenance and inspection shutdowns impacted yields and profitability in the O2C segment, although higher gasoline cracks and advantageous feedstock sourcing partially offset these effects.

Retail Business Performance

Similar to the second quarter, Reliance Retail reported impressive revenue growth of 22.8% year-on-year, reaching ₹83,063 crore. Demand remained robust across various consumption baskets, with significant growth seen in the grocery, fashion & lifestyle, and consumer electronics segments. Reliance Retail expanded its footprint by opening 252 new stores during the quarter, further solidifying its position in the market.

Forward-looking Outlook

Isha M Ambani, Executive Director of Reliance Retail Ventures, expressed confidence in the steady performance of Reliance Retail, emphasizing its role in India’s economic growth story. With a focus on innovation and offering world-class possibilities, Reliance Retail aims to continue shaping the future of retail in India.