Reliance Industries Ltd , India's leading conglomerate, has achieved a significant milestone by entering the top 25 global companies by net worth, ranking 21st with $118.00 billion. It has become the first Indian company to surpass ₹10 lakh crore in net worth. The company has also announced its fourth-quarter results for FY2023, revealing a mixed performance across its various segments.

Financial Performance

For FY2023, Reliance Industries reported:

• Net profit: ₹81,309.00 crore (3% increase)
• Net revenue: ₹9.60 lakh crore (7.1% increase)
• Record EBITDA: ₹1.70 lakh crore

The board has approved a fundraising plan of up to ₹25,000.00 crore through bonds and declared a dividend of ₹5.50 per share.

In Q4 FY2023, the company reported:

• Consolidated net profit: ₹19,407.00 crore (up 4.7% year-on-year)
• Consolidated revenue: ₹2.61 lakh crore (below analyst estimates)

Key Financial Metrics

The operating margin contracted by 140 basis points to 16.80%, indicating some pressure on profitability despite overall growth in net profit.

Segment-wise Performance

Jio Platforms

Jio Platforms, the telecom and digital services arm, reported:

• Consolidated net profit: ₹6,642.00 crore (up from ₹6,477.00 crore QoQ)
• Revenue: ₹30,018.00 crore (up from ₹29,307.00 crore QoQ)
• ARPU (Average Revenue Per User): ₹206.20 per subscriber per month
• EBITDA: ₹16,188.00 crore (up from ₹15,798.00 crore QoQ)
• EBITDA margin: 53.90% (unchanged YoY)

O2C (Oil-to-Chemicals) Business

The O2C business showed significant growth:

• Revenue: ₹1.65 lakh crore (up 15.4% YoY)
• EBITDA: ₹15,080.00 crore (up 4.7% QoQ but down 10% YoY)

Reliance BP Mobility Limited, part of the O2C segment, reported strong growth in fuel sales volumes.

Oil & Gas Segment

The oil & gas segment revenue remained stable at ₹6,440.00 crore.

Conclusion

Reliance Industries has achieved a significant milestone by entering the global top 25 companies by net worth, demonstrating its growing influence on the international stage. The company's financial results for FY2023 and Q4 FY2023 present a mixed picture, with strong overall growth in net profit and revenue, but some segments facing challenges.

The telecom segment's robust growth in revenue, profitability, and ARPU demonstrates the company's strength in the digital services sector. The O2C business's substantial revenue growth, despite a year-on-year decline in EBITDA, indicates resilience in the face of global volatility. The stable performance of the oil & gas segment further contributes to the company's diverse revenue streams.

With the approved fundraising plan and dividend declaration, Reliance Industries appears poised for further growth and expansion. As the company continues to strengthen its position both domestically and globally, investors and analysts will be closely monitoring its performance across various segments and its strategies to address challenges while capitalizing on growth opportunities.

Reliance Industries Limited 's telecom arm, Jio, has demonstrated continued growth in the Indian telecom market, according to the latest data from the Telecom Regulatory Authority of India (TRAI). The report reveals that Jio added an impressive 1.77 million new users to its subscriber base in February.

Steady Growth in a Competitive Market

The addition of 1.77 million new subscribers in a single month underscores Jio's strong position in India's highly competitive telecom sector. This growth is particularly noteworthy given the mature state of the Indian mobile market, where acquiring new customers can be challenging.

Implications for Reliance Industries

For Reliance Industries, the parent company of Jio, this subscriber growth is a positive indicator. It suggests that:

• Market Strategy: Jio's marketing and pricing strategies continue to resonate with Indian consumers.
• Network Expansion: The company's ongoing investments in network infrastructure may be paying off, attracting more users to its services.
• Revenue Potential: An expanding user base could potentially translate into increased revenue for Reliance's telecom segment in the coming quarters.

Industry Context

While the TRAI data provides a snapshot of Jio's performance, it's important to note that:

• The overall trend in subscriber additions across the industry would provide more context to Jio's growth.
• Factors such as quality of service, data speeds, and innovative offerings play crucial roles in attracting and retaining customers in the telecom sector.

As Jio continues to expand its subscriber base, it will be interesting to observe how this growth impacts the company's financial performance and market share in the coming months. Investors and industry analysts will likely keep a close eye on future TRAI reports to track the ongoing dynamics in India's telecom market.