Tue Oct 15 01:50:31 UTC 2024: ## Reliance Reports Muted Growth in Q2 FY25 Due to Weaker Oil-to-Chemicals Business

**Mumbai, India** – Reliance Industries Ltd (RIL), the oil-to-telecom conglomerate led by billionaire Mukesh Ambani, reported a muted growth in its financial results for the July-September quarter of fiscal 2024-25 (Q2FY25), released on October 14th. The company’s consolidated profit came in at ₹16,563 crore, a 4.7% decline compared to the same period last year. Consolidated revenue from operations remained flat at ₹2,35,481 crore.

The muted performance was attributed to a weaker oil-to-chemicals (O2C) business, which saw a 23.7% year-on-year decline in EBITDA due to sharp declines in product margins. Unfavorable global demand-supply dynamics impacted refining and petrochemicals segments, leading to lower fuel cracks and weaker downstream chemical performance.

Despite the challenges in the O2C segment, Reliance saw strong growth in other key business segments, particularly Jio. The telecom arm reported a 17.8% year-on-year increase in EBITDA, driven by a better subscriber mix, digital services scale-up, and a recent revision in telecom tariffs. JioAirFiber, the company’s home broadband service, also saw a rapid uptake, with over 2.8 million connected homes by September 24th.

The retail segment, led by Isha Ambani, also reported positive growth with a 14% increase in footfalls across its 18,946 stores. The company added 464 new stores during the quarter, showcasing its commitment to expanding its consumer touchpoints and product offerings across physical and digital channels.

Reliance Retail remains on track to achieve its ambitious goal of doubling its business in the next 3-4 years. The company is also making significant investments in its New Energy business, with its first Giga-factory for solar PV modules expected to start production by the end of this year.

While the overall performance was muted due to the O2C segment, Reliance’s strong performance across its digital and retail arms signals a positive outlook for the company. The company’s focus on innovation, diversification, and a commitment to clean energy transition positions it well for future growth.

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