Reliance Industries Sets Record: First Indian Company Tops Rs 1L Cr Profit

Reliance Industries Limited (RIL) has made a significant mark in India's corporate landscape by becoming the first company to surpass the Rs 1 lakh crore pre-tax profit milestone.

The conglomerate, spanning industries from oil and gas to retail and telecom, announced its quarterly earnings, showcasing remarkable growth in various sectors.

RIL achieved record annual consolidated revenue over Rs 10 lakh crore for the fiscal year that ended on March 31. This success was driven by ongoing momentum in its upstream and consumer sectors. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the company increased by 16.1% to Rs 1.79 lakh crore during the same time frame.

Despite economic challenges, RIL's net profit for the fiscal year increased by seven percent to Rs 79,020 crore compared to the previous year. In the fourth quarter alone, the company reported a net profit of Rs 21,243 crore, surpassing analyst estimates and driven primarily by a recovery in its core oil-to-chemicals (O2C) business.

The company's quarterly revenue stood at Rs 2.41 lakh crore, slightly higher than analysts' projections. Consolidated EBITDA for the quarter rose by 14.3 percent to Rs 47,150 crore, further highlighting RIL's robust performance.

RIL's board approved a dividend payout of Rs 10 per share, underscoring its commitment to shareholder returns. Despite the earnings announcement, the company's shares remained relatively unchanged.

Mukesh D. Ambani, Chairman and Managing Director of Reliance Industries Limited, expressed his satisfaction with the results, noting the company's pioneering achievement in crossing the Rs 100,000-crore pre-tax profit threshold. He attributed the strong performance to global demand for fuels and the resilience of the O2C segment.

Ambani also highlighted the growth in the company's digital services segment, driven by an accelerated expansion of the subscriber base. He reiterated RIL's commitment to future projects and initiatives, including those in the new energy segment, aimed at ensuring sustainable growth.

RIL's four main segments-O2C, Oil & Gas, Retail, and Jio-have all reported robust operating performance. In the O2C business, EBIDTA rose by three percent, supported by advantageous feedstock sourcing and higher domestic product placement.

The Oil & Gas segment reported a record quarterly EBITDA, with revenue rising primarily due to higher volumes. However, lower price realisations from the KG D6 Field partially offset these gains.

Jio Platforms, the telecom arm of RIL, saw a 12 percent increase in profit for the fourth quarter, driven by strong subscriber additions. The average revenue per user (ARPU) also improved, reflecting positively on the company's performance in the telecom sector.

RIL's retail business witnessed an 18.1 percent increase in EBITDA, with revenue growth fueled by consumer electronics and fashion and lifestyle segments. The company expanded its store footprint, adding 1,840 stores during the quarter.

With these impressive financial results, Reliance Industries continues to solidify its position as a leader in India's corporate landscape, demonstrating resilience and adaptability across its diverse portfolio of businesses.