Reliance Industries Ltd reported a 12.5% decline in its consolidated net profit for the fourth quarter ended March 31, 2023, missing analyst estimates, as the energy crisis and lower refining margins weighed on its performance.
Financial Performance
The oil-to-telecom conglomerate's net profit fell to Rs 15,792 crore ($2.1 billion) from Rs 18,051 crore a year earlier. Revenue from operations rose 3.3% to Rs 2.13 lakh crore, driven by growth in its retail and digital services businesses.
Segment-wise Analysis
Reliance's oil-to-chemicals (O2C) segment, which includes refining and petrochemicals, saw a decline in earnings before interest and tax (EBIT) due to lower margins. The company said the O2C business was impacted by a sharp fall in product cracks and a decline in demand.
The retail segment reported a 23% increase in revenue, while the digital services business, led by Jio, posted a 14% rise in revenue. Jio's average revenue per user (ARPU) improved to Rs 178.2 per month.
Outlook
Reliance Chairman Mukesh Ambani said the company remains focused on growth and value creation across its businesses. The company expects its new energy ventures to contribute significantly in the coming years.
