RIL Q2 profit slips 5% to Rs 16,563 crore, still beats market expectations

Mukesh Ambani-led Reliance Industries Ltd (RIL) reported a 5% decline in consolidated net profit for the quarter ending September 2024, posting Rs 16,563 crore compared to Rs 17,394 crore in the same period last year.
Despite the decline in net profit, the company’s performance in the second quarter was better than street estimates.
Revenue from operations inched up by 0.2% year-on-year, reaching Rs 2.35 lakh crore for the quarter.
The company’s EBITDA stood at Rs 43,934 crore, reflecting a 2% decline year-on-year, while EBITDA margins dropped by 50 basis points to 17%.
Finance costs for the quarter increased by 5% year-on-year to Rs 6,017 crore ($718 million), driven by higher debt.
Despite these challenges, RIL saw strong growth in its digital services and upstream business, which helped offset weaker contributions from its oil-to-chemicals (O2C) segment, impacted by global demand-supply headwinds.
“I am happy to note that during this quarter Reliance once again demonstrated the resilience of its diversified business portfolio,” said Mukesh Ambani, Chairman and Managing Director of RIL.
“Our performance reflects robust growth in Digital Services and Upstream business. This helped partially offset weak contribution from O2C business which was impacted by unfavorable global demand-supply dynamics,” he added.