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RIL performance in third quarter supported by performance of consumer businesses
Business, Equities, Markets, Result Updates - January 17, 2025

RIL performance in third quarter supported by performance of consumer businesses

RIL performance in third quarter supported by performance of consumer businesses

Reliance Industries Limited (RIL) in terms of both EBITDA and revenue observed consecutive growth in the third quarter of the FY25. The main growth drivers were the Retail businesses and digital services of the firm.

Digital Services
The reason for increase in growth in the digital services segment of the business was mainly due to remarkable improvement in the Jio’s Average Revenue Per User (ARPU). This hike in ARPU indicates the potential of Jio to make more money from its customers. It is supported by factors such as increase in tariff, providing more expensive data plans and value-added services to customers.

Both EBITDA and revenue recorded a strong growth of 19 percent year-on-year. The growth in subscription additions was slow. However, the growth in ARPU was around 12 percent year–on-year. It was supported by a rise in contributions from 5G users and a spike in tariff.

Retail business
The revenue growth year-on-year of RRVL is high in single-digit for the third quarter of the financial year 2025. The positive growth was observed in consumption sections due to rise in positive customer sentiments. It was supported by the festive and wedding season. Also, the company’s strategy of network expansion along with strong growth in store throughput helped in achieving revenue growth.

In this quarter, RRVL recorded a year-on-year growth of 6 percent. It aims to draw more new customers, which is supported by growth of 15 percent in registered consumer base and 5 percent growth in shopping traffic.

The Business to customer (B2C) grocery recorded robust growth of 37 percent, supported by big stores. It observed growth in segments such as value apparel, premium personal care and general products. While, the retail electronic operations observed an increase in paying customers and a spike in average expenditures. While the fashion and lifestyle division of the company registered positive improvements due to launching of new fashion and enhancement of shopping experiences.

The contribution of digital and new commerce operations in total sales growth was 18 percent in the third quarter compared to 17 percent in the second quarter. The consumer brands’ revenue of the company is increasing at fast speed which accounts to Rs.8000 crore in the duration of nine months of the financial year 2025.

The total margins of RRVL raised by 8.6 percent due to increase in store throughput as well as efficiency in its operations.

One of the reasons for its increasing revenue growth is the company’s partnerships with global brands to expand its product base and to draw new consumers. In the third quarter, the company did a franchise partnership with Saks Fifth Avenue. It also did a joint venture with Mother care in order to get the Mothercare brand.

Oil and Gas Segment
In contrast to retail and digital services business, the oil and gas E&P segment recorded a fall in year-on-year revenue growth by 5 percent. The reason for decline in revenue was fall in volumes of gas and condensate in KGD6 and fall in prices of condensate and CBM gas. Though, it was partially balanced out by a rise in volumes of CBM gas and a slight rise in the price of KGD6 gas.

Oil to Chemical segment
Despite a fall in export by 9 percent, the revenues of the Oil to Chemical segment recorded an increase of 6 percent year-on-year growth. Overall revenue performance of the segment fell due to decline in export contribution.

The EBITDA of the segment increased by 16 percent on a quarter-on-quarter basis leading to improvement in margins by 165 bps. The transportation fuel prices were supported by robust demand in Asia except China. It was partially balanced out by the weak demand in China. Gasoline 92 RON prices in Singapore dropped slightly by $6.5 per barrel in the third quarter of financial year 2025 compared to $6.8 per barrel in the second quarter of the same financial year. The reason for this is sufficient supply in the market due to high US refinery production and slow demand in China.

The polymer margins of PVC and polypropylene were better which was partially supported by domestic demand levels and prices of Singaporean Naphtha. In contrast to this, polyester and polyethylene margins did not perform well.

Outlook
The diversified business structure of RIL is seen to be useful in the present domestic and international business challenges. Its proof is seen in the company’s growth in consumption-based businesses.

The company’s investment in 5G services is giving good results as 170 million 5G subscribers in the third quarter are recorded compared to 148 million subscribers in the second quarter. It made RIL as the biggest global 5G operator beyond China.

The broadband connectivity of Jio AirFiber is across India, particularly between the top 1,000 cities. It is important to note that more than 70 percent of the new connections are from these less served areas only. The home connection of Jio is increasing at a faster rate and the total installation has reached nearly 17 million. At global level, Jio is the fastest-growing fixed wireless operation. It has more than 2.8 million Jio AirFiber connections. The expansion of these services will certainly lead to a boost in financial performance of the company.

RRVL is also focusing on the creation of express deliveries of various products to fulfill consumer choice for quick delivery. It is implementing this plan through Jio Mart. The expansion of product base and improvement in customer sentiment will lead to a return of double-digit growth.

The E&P segment is going through temporary challenges. The 40 multi-lateral wells campaign (34 wells completed already) will help in production of CBM.

RIL will face risk and opportunity in the US-China trade war. RIL’s focus on premiumization in consumption productions and digitization will help its consumer-based operations. Directing cash flows in the clean energy sector will make RIL a key player in the transformation of the energy sector in India.

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RIL performance in third quarter supported by performance of consumer businesses
Business, Equities, Market News, Markets - January 10, 2025

Reliance Industries Q2: Telecom and Retail Sectors Fuel Strong Growth Overview

Reliance Industries Q2: Telecom and Retail Sectors Fuel Strong Growth

Overview
Mukesh Ambani, a billionaire and India’s richest person, leads Reliance Industries, the country’s largest firm by market capitalization. However, RIL is not the only company led by Ambani that is listed on the stock exchange. Reliance Industrial Infrastructure Limited, a RIL-promoted firm, has declared its quarterly earnings for the October-December 2024 period.

Price History of RIIL
On Wednesday, shares of the Reliance Industries-backed company closed at Rs 1113 per on the BSE, down 2%. RIIL, with a market capitalization of Rs 1,680.63 crore, is a component of the S&P Smallcap Index. Reliance Industrial Infrastructure shares have fallen 20% in the last six months and 17% over the last year.
According to BSE statistics, the Reliance stock has increased by 22 percent in the last two years and 29.53 percent in the last three years and consequently, the shares of RIIL have surged by 142& in the last 5 years. Meanwhile, Ambani-led Reliance Industries is a promoter in the company, with 68,60,064 shares representing a 45.43 percent ownership.

Bernstein Report
Reliance Industries Limited will experience a recovery cycle following a bad year in 2024, according to Bernstein analysis. According to this analysis, RIL’s near-term growth drivers will include telecom, retail, and refining. In 2025, the recovery will be spearheaded by a 12% increase in Jio’s Average Revenue Per User (ARPU) without rate increases, as well as 4-5% user growth. Retail operations are also expected to improve, with double-digit EBITDA growth, providing strength to the RIL.

The research notes that the company’s current valuation of 10.1x projected EV/EBITDA is 17% lower than its three-year average. With earnings likely to climb by 19% or higher in FY26, Bernstein has upped its target price for RIL to Rs 1,520, representing a 25% upside.
According to the analysis, Reliance Jio would be a primary driver of RIL’s recovery, with revenue growth forecast at a CAGR of 17% over the next three years.

By FY26, ARPU is forecast to increase by more than 14%, and Jio’s subscriber base is expected to reach 500 million, resulting in a 48% revenue market share.
According to the study, Jio’s lower capital investment is further bolstering its profitability, which benefits RIL. According to the research, RIL’s retail business is expected to rebound from the setbacks suffered last year following the shop rationalisation. It expects a return to 15% growth by FY26, aided by normalized capital spending and higher revenue per square foot.

According to the research, the refining business, which was under pressure from dropping GRMs in FY24, has begun to reverse its trajectory. GRMs are predicted to rise by 5.4% year on year in FY26, helped by a weaker Indian rupee.
The corporation will gain from its new investments in the energy sector, which include solar and storage capacity. RIL intends to use 20 GW of panel production for internal consumption and manufacture green H2 in 2025, with a goal of reaching 50 Wh of cell-to-pack battery manufacturing by 2027.The Reliance gigacomplex will be the largest end-to-end renewable energy manufacturing facility.

According to the study, Reliance plans to create a battery gigafactory by 2026 and to accelerate sodium iron technology to a megawatt level by 2025. RIL inked its first 25-year PPA for 128MW and an MOU with the Maharashtra government for 100kTPA GH2 production (an investment of USD1.8 billion), which will help the business in public markets, according to the report.

Bernstein values RIL using a sum-of-the-parts approach, taking into account growth in its core segments. Jio’s telecom section is valued at 12x projected EV/EBITDA, while the retail segment is evaluated based on core and non-core operations. Refining and petrochemical segments are valued at 7 times FY26 EV/EBITDA. Bernstein emphasized RIL’s potential to generate substantial free cash flow and offer solid returns for investors, citing a steady-state EBITDA of USD 22 billion expected for FY25-27.

Q3 Results Date
The Ambani-led firm’s Board of Directors will meet next week on January 15, 2025, to accept un-audited standalone and consolidated financial reports for the quarter/nine months ended December 31, 2024. RIIL said last month that the Trading Window closing period will begin on January 1, 2025 and expire 48 hours after the Company’s financial statements for the third quarter ended December 31, 2024 become Generally Available Information.

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CCI Green Signal for INR 70,350 cr. Reliance & Disney India Merger
Business, Equities, Market News, Markets - September 6, 2024

CCI Green Signal for INR 70,350 cr. Reliance & Disney India Merger

CCI Green Signal for INR 70,350 cr. Reliance & Disney India Merger

A significant turning point in the Indian media and entertainment industry has occurred with the approval of the INR 70,350-crore merger between Reliance Industries Limited (RIL) and Disney India by the Competition Commission of India (CCI). With this merger, two sizable companies with sizable market shares are significantly more consolidated. With the CCI’s permission, the merger appears to be free of any anti-competitive concerns, removing any remaining regulatory obstacles to the transaction’s completion. With the combination of Disney India’s strong brand presence and Reliance’s abundant resources, this merger is anticipated to significantly alter the dynamics of the Indian entertainment sector.

A strategic alignment of interests has been the focus of lengthy talks leading up to the merger of Reliance and Disney India, which has been in the works for some months. The conglomerate Reliance Industries, which has a wide range of commercial ventures, has been increasing its market share in the digital and media industries. By expanding on its current assets, such as Jio Studios and Network18, Reliance is able to further solidify its position in the entertainment sector with the acquisition of Disney India. Disney India aims to gain from Reliance’s strong distribution network and significant financial support because of its well-known channels and vast content library. With the combination of Reliance’s technology and financial resources and Disney’s creative know-how, this merger may result in the formation of a content powerhouse.

Strategically speaking, both businesses stand to gain from the combination. In order to meet the increasing demand for varied and excellent entertainment, Reliance saw the acquisition of Disney India as a calculated strategic decision to strengthen its content portfolio. The acquisition is in line with Reliance’s overarching plan to dominate the digital and media space by utilising its vast digital infrastructure through its telecom subsidiary Jio to more efficiently and broadly distribute content. Conversely, Disney India has entry to Reliance’s vast distribution network, which may considerably expand its market penetration among India’s heterogeneous population. This combination may result in more audience and more lucrative prospects, especially in the rapidly expanding field of digital streaming.

The clearance of the CCI is a crucial stage in the merger process since it resolves any possible anti-competitive issues that can arise from a large-scale consolidation of this kind. According to the commission’s ruling, there won’t be a major concentration of market power as a result of the merger that would be detrimental to the interests of consumers. Instead, by building a more formidable organisation that can take on other significant companies, it is anticipated to promote more competition in the media and entertainment industry. A more varied and reasonably priced selection of content alternatives for customers might result from this competition, which would be advantageous to the ecosystem as a whole.

The union is not without difficulties, though. To guarantee a seamless transition, integrating two sizable organisations with different operating philosophies and cultures would require careful management. The combined company will also have to deal with possible content and distribution-related regulatory issues. Stakeholders worried about possible job losses and the merger’s effect on smaller companies in the market may also oppose it. It will be imperative that these issues are resolved if the combined company is to meet its goals and keep its good standing in the marketplace.

Future effects of the Reliance and Disney India combination may be significant for the Indian entertainment sector. It may pave the way for more industry consolidation as competing businesses might want to develop strategic alliances. Reliance and Disney India’s combined powers have the potential to become a content behemoth that can create and distribute a vast array of material for a variety of channels, including digital streaming services and traditional television. This may quicken India’s transition to digital consumption, especially as the country’s internet penetration rate rises and more people go to online entertainment sources for their enjoyment.

To sum up, the INR 70,350 crore merger between Reliance and Disney India was approved by the CCI, which is a big step forward for the media and entertainment industry in India. Two powerful businesses with complimentary traits unite through the merger to create a dominant player in the market. Even if there may be difficulties, the merger may be advantageous in the long run due to its greater competitiveness and improved content offers. It would be interesting to observe how this consolidation affects the future of entertainment in India as the combined business starts to integrate and carry out its strategic strategy.

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Business, Equities, Expert Views, Investor Forum, Market News, Markets, Research, Research Reports, Result Updates - August 16, 2024

Reliance Industries enters into PPA with Adani Power subsidiary

Reliance Industries enters into PPA with Adani Power subsidiary

Reliance Industries Limited (RIL) has entered into a significant power purchase agreement (PPA) with Mahan Energen (MEL), a subsidiary of the Adani Power. This 20-year deal, valued at Rs 50 crore, marks a strategic collaboration between two of India’s industrial giants. The crux of the agreement lies in APML supplying electricity to RIL for a period of 20 years. The deal likely involves bulk power supply to cater to RIL’s vast energy requirements across its refineries, petrochemical plants, and other operations. The agreement signifies a Rs 50 crore investment from RIL, likely towards securing a stable and reliable power source for the next two decades. This strategic move can potentially lead to cost savings for RIL in the long run, especially considering the rising costs of conventional power generation.

Company Overview

Reliance Industries Limited (RIL), has a diversified presence across sectors like petrochemicals, refining, retail, telecom, and now increasingly, renewable energy.


Market Capitalization of RIL is ₹ 2,010,621 Cr. TTM EPS is 103.41. TTM PE is 28.74. P/B is 2.45. ROE is 8.94 % and ROCE is 9.14 %. Share Price of the company opened at ₹2,985.75 and closed at ₹2971.70. For Q3 of FY24: Revenue of the company is ₹2,48,160 cr. Net profit is ₹19,641 cr. EBITDA is ₹44,678 cr. Capital Expenditure is ₹ 30,102 Cr. Cash & Cash Equivalents is ₹ 192,371 Cr.


Adani Power is an Indian multinational power and energy company situated in Khodiyar, Ahmedabad, India. It is a subsidiary of the Adani Group. It is a privately owned thermal power producer with a 12,450 MW capacity. It also runs a 40 MW mega solar facility in Naliya, Bitta, Kutch, Gujarat.


Market Capitalization of Adani Power is ₹205,883 Cr. TTM EPS is 60.50. TTM PE is 8.82. P/B is 12.55. ROE is 44.8 %. ROCE is 15.8 %. Share price of Adani Power opened at ₹520.00 and closed at ₹533.80 For Q3 of FY24: Revenue is ₹12,991.44 Cr. EBITDA is ₹5,059 cr. Profit After Tax is ₹2,737.96 Cr. EPS is 6.61. Total assets are ₹88,289.84 Cr.


The RIL-APML deal holds immense significance for India’s power sector. It highlights a growing trend of collaboration between private players to ensure efficient and reliable power supply. The deal could potentially pave the way for further consolidation within the power sector, with other companies exploring similar arrangements. The agreement might indirectly propel both companies to prioritize renewable energy sources in their future endeavors, considering India’s ambitious clean energy targets.

RIL might secure a competitive electricity tariff compared to prevailing market rates through this long-term agreement. This could lead to significant cost savings over the 20-year period, particularly if energy prices rise in the future. RIL, with its vast energy requirements across its various ventures, might be seeking to diversify its power procurement sources. This agreement could be a strategic move to hedge against potential price fluctuations or secure a reliable backup option. APML, a prominent player in the Indian power sector, assures a reliable source of electricity for RIL’s operations. This can minimize disruptions and ensure smooth functioning of RIL’s facilities.

The Reliance-Adani Power PPA presents a captivating development in the Indian energy sector. The long-term benefits in terms of cost optimization and reliability are remarkable. deal signifies a strategic alliance with long-term implications for both companies. This collaboration, coupled with the focus on renewable energy, paves the way for a more sustainable and secure energy future for India.

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Reliance Communications settles dues with Ericsson
Market News, Markets - March 19, 2019

Reliance Communications settles dues with Ericsson

On 18th March 2019, the day before the deadline by Supreme court Mukesh Ambani led Reliance Industries made a striking intervention and saved his younger brother Anil Ambani from going...
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