RIL Q2FY25, digital services partially offset weak contribution from O2C business

Reliance Industries Ltd reported a 4.8 percent YoY decline in consolidated profit at Rs 16,563 crore for the July-September quarter (Q2) of 2024-25. Revenues, too, disappointed.

This marks the third straight quarter of declining profits on a YoY basis, of which the last two were primarily due to its weak oil-to-chemicals (O2C) business. Had it not been for the consumer businesses and a surge in other income, the performance would have been even worse.

Quarterly Performance (2Q FY25 vs 2Q FY24)
Digital services revenue increased due to the impact of revised telecom tariffs for mobility services and the scaling up of homes and digital services businesses.

EBITDA for Jio Platforms Limited (JPL) increased 17.8% Y-o-Y due to a better subscriber mix, digital services scale-up, and revision in telecom tariffs

Commenting on the results, Mukesh D. Ambani, Chairman and Managing Director of Reliance Industries Limited, said: “I am happy to note that during this quarter, Reliance once again demonstrated the resilience of its diversified business portfolio. Our performance reflects robust growth in Digital Services and Upstream business. This helped partially offset the weak contribution from the O2C business, which was impacted by unfavorable global demand-supply dynamics. Growth in Digital Services was led by increased ARPU and improving customer engagement metrics, reflecting the strong value proposition of our services. The home broadband segment is witnessing accelerated momentum because of our unique industry-leading JioAirFiber offering. Jio’s broad spectrum of offerings enables it to digitally empower every village, town, and city in India and the country’s small and medium-scale enterprises. The digital services business continues to focus on innovative deep-tech solutions on a national scale. It is on track to deliver the path-breaking benefits of Artificial Intelligence to all Indians.
BCS Bureau