Reliance Industries Share Price Climbs 2% on Strong Q3 Results; Jio’s ARPU Shows 10% CAGR

Reliance Industries (RIL) share price rose 2.65% to ₹1,300 at 9:40 AM on the NSE, driven by strong Q3 results and a 10% CAGR in Jio’s ARPU over the past 5 years. The full impact of the July 2024 tariff hike is expected to materialise soon.

RIL Reports Growth in Net Profit for Q3

Reliance Industries posted a 7% year-on-year (YoY) increase in consolidated net profit, reaching ₹18,540 crore for Q3. The company’s total revenues also grew by 7% YoY to ₹2.43 lakh crore.

The company’s depreciation increased by 2% YoY to ₹13,181 crore, while finance costs saw a 7% rise YoY, mainly due to an increase in the debt balance. Despite this, net debt remained mostly unchanged, the company said in a press release on the stock exchange.

The positive results in the quarter were primarily driven by robust performance from the company’s key businesses: Jio, Retail, and Oil-to-Chemicals (O2C). Refining margins in O2C showed a strong recovery on a sequential basis.

Jio Platforms Shows Strong Growth

Jio Platforms, Reliance’s digital division, reported a 26% YoY increase in net profit to ₹6,861 crore. Revenues for the segment grew by 19% YoY, amounting to ₹38,750 crore. This growth was attributed to a partial impact of tariff hikes, increased home connections, and a boost in non-connectivity digital services.

EBITDA for Jio Platforms surged nearly 19% YoY to ₹16,585 crore. However, margins decreased slightly by 30 basis points to 50.1%. Average revenue per user (ARPU) increased to ₹203.3, slightly below analysts’ expectations.

Jio continued to lead the industry in customer engagement, with per capita data consumption at 32.3 GB per month, contributing to a 22% increase in total data traffic.

The company also reported a net subscriber addition of 3.3 million in Q3, and monthly churn moderated to 2%. The impact of the tariff hike from last year is expected to continue playing out over the coming quarters.

Reliance Retail Reports Strong Performance

Reliance Retail, the consumer-facing segment of the business, posted a 9% YoY revenue growth, reaching ₹90,333 crore in Q3. Sequential growth was even stronger, up by 18%, driven by improved customer engagement during the festive period, product launches, and promotions.

EBITDA for Reliance Retail rose by 10% YoY to ₹6,632 crore, and EBITDA margins improved by 20 basis points to 8.3%. Profit after tax (PAT) for the segment grew by 10% YoY to ₹3,458 crore.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.