Indian firm RIL's revenue soars 11.5% to $30.9 bn in Q1 FY25

Indian conglomerate Reliance Industries Limited (RIL) has reported a gross revenue of ₹2.578 trillion (approximately $30.9 billion) in the first quarter of fiscal 2025 (Q1 FY25), reflecting an 11.5 per cent year-on-year (YoY) increase. This growth was primarily driven by steady performance in consumer businesses. The EBITDA for the quarter rose by 2 per cent YoY to ₹427.48 billion (approximately $5.1 billion). However, profit after tax saw a decline, coming in at ₹174.48 billion (approximately $2.1 billion), down YoY.

The polyester chain delta experienced a 15 per cent decline YoY, influenced by weaker paraxylene (PX), purified terephthalic acid (PTA), and monoethylene glycol (MEG) deltas. The polyester chain margin for Q1 FY25 was $489 per metric tonne (MT), compared to $574/MT in Q1 FY24. The decline in margins was attributed to a rise in Naphtha prices, which negatively impacted PX and MEG margins. Additionally, PTA margins were adversely affected by high inventory levels among Chinese producers and increased competition. Despite these challenges, downstream polyester margins remained stable on a YoY basis, the company said in a press release.

“Consolidated EBITDA for the quarter improved from a year ago with strong contribution from consumer and upstream businesses. Reliance’s resilient operating and financial performance in this quarter underscores the strength of its diverse portfolio of businesses. Importantly, these businesses are contributing significantly to India’s growth, providing vital energy and vibrant channels for digital and physical distribution of goods and services,” said Mukesh D Ambani, chairman and managing director, RIL.

Domestically, polyester demand increased by 5 per cent YoY, driven by a robust 27 per cent growth in polyethylene terephthalate (PET). Polyester staple fibre (PSF) demand grew by 9 per cent, reflecting improved market sentiments following the normalisation of cotton prices, while polyester filament yarn (PFY) demand decreased by 4 per cent due to higher fabric imports.

Reliance Retail Ventures Limited (RRVL) posted a steady performance, with revenues reaching ₹756.15 billion, an 8.1 per cent YoY increase. The reported EBITDA stood at ₹56.64 billion, up 10.5 per cent YoY, driven by higher footfalls and an expanded store footprint, alongside streamlined operations that enhanced margins. EBITDA before Investment Income was ₹54.48 billion, marking an 11.5 per cent YoY growth.

The retail business expanded significantly, with 331 new stores opening during the quarter, bringing the total store count to 18,918 and the operational area to 81.3 million square feet. The quarter saw over 296 million footfalls, an 18.9 per cent YoY growth. Digital commerce and new commerce channels continued to scale up, contributing 18 per cent of the total revenue.

Ajio, Reliance’s online fashion platform, delivered a robust performance by expanding its product catalogue by over 20 per cent compared to the previous year and adding over 1.9 million new customers. The platform’s flagship marketing event, the ‘Big Bold Sale,’ saw 21 per cent higher traffic and a 50 per cent increase in conversions compared to regular business periods. Ajio Luxe also reported strong growth, with its options count increasing by 39 per cent YoY and its brand portfolio surpassing 700 brands.

“Reliance Retail delivered resilient performance during the period and strengthened its position as India's foremost retailer. The steady expansion and growth of our retail business not only signifies our commitment to customer centricity but also mirrors the resilience and vitality of the Indian growth narrative. We continue to make strides in delivering better retail experiences for our customers as we embrace innovation to improve products, processes, and platforms along with integrating advanced technologies,” said Isha M Ambani, executive director, RRVL.

Fibre2Fashion News Desk (DP)