Reliance Industries Limited

We will actually provide you the highlights of our second quarter of financial year 2024 presentation. First talk will be Srikanth, who will talk about the consolidated numbers, first followed by Kiran and Ashwin, who will walk you through the year performance, and then Dinesh, who will walk you through detail, then Sanjay Roy for E&P, and then Srikanth back again for O2C and the summary. Over to you, Srikanth.

Thanks, Shini. Good evening to all of you. Let me start off with the highlights for the quarter. It was a quarter of the EBITDA as a record that almost 45,000 crores, which is about 5.4 billion, was up 30% year on year. And we saw performance across all the segments. Net profit, we delivered, again, close to 20,000 crores. That is 2.4 billion. Even that was up 30%. Consumer business, very strong. Retail was the highest quarterly EBITDA with strong footfalls and an 80% margin expansion. Digital services growth led by network relationship, strong subscriber nation, and growing 5G adoption with more than 70 million people having migrated to the 5G network. OTC EBITDA was very strong on the back of domestic demand, which held up very well, firm fuel cracks, and specifically PBC Delta. Another upside came from our KGDC gas production, which was sharply up and also which actually led to a strong performance for our oil and gas segment. So, just the quick highlights before and I'm sure my colleagues will take you through in more detail, but if you look at retail at 77,000 crores, the revenues were up 19 percent. EBITDA at 5,820 crores, which was up 32 percent. So we saw, you can see on a year-on-year basis, the store expansion numbers, the area and operation at 71.5 million square feet, which is again up 31%. We saw in this quarter festive demand and growth across segments. In fact, we had the best ever Independence Day sale, which was for consumer electronics, which recorded a 23% growth. If you see the store additions, we had 471 new stores in this quarter, and when you see the growth over the year, it is more than 2,000 stores. Moving to digital services, revenue close to 32,000 crores up 11%, EBITDA 13,500 up 12.5%. Again, if you see the subscriber addition, we had 11.1 in second quarter and on a full year basis, if you were to compare year on year, 32 million. Data traffic was also higher, close to 29% growth, which is 3.63 exabyte of data. Clearly, you can see traction across and the fact that the offering is significantly differentiated has led to customer engagement, which you are also seeing in terms of translating in terms of earnings. On O2C side, the lack in 48,000 crores of revenue, which is lower by 7.3%. That's more on the back of oil prices. If you were to see year on year, oil prices were lower by almost 14%. But if you look at EBITDA, 16,300 crores up 36% year-on-year. This is on the back of both volume increase, which is up 6%. It was on the back of gasoline cracks, which is up 47%. Even PVC margins were higher. And we continue to benefit from optimized feedstock sourcing. Overall, SAED was lower, but that was also in line with weakness in the mid-display cracks. However, the offset has been the fact that the domestic demand has held up pretty well. If you look at polymer demand is up 25 percent year on year. Polyester demand is up 12 percent. Oil demand is up about 5 percent. So overall, you know, the Indian demand is holding very well. And given that we are, we largely supply more than 85 percent actually get supplied into the domestic market, we benefited. So people are also, you know, you could see Dom's instructor restocking with lower prices because these prices are, you know, some of them are two-year or three-year lows. So you could see a demand coming in terms of restocking. On the oil and gas side, as I highlighted, revenues at 6,620 crores, up 72%. EBITDA, close to 4,800 crores, up 50%. And these are all-time highs. And also, when you look at it, it is benefiting from strong incremental volume, both gas and condensate, from the MGA field. And we just looked at the numbers. Just the KGG6 production alone is now averaging about 20.3 MMSE MD versus what it was in 19 MMSE MD in second quarter of FY23. So these are the numbers when you bring them together, you know, revenues of 2,56,000 almost flat there, but EBITDA has highlighted 45,000 crores, which is up 30%. And when you look at, as I mentioned, as you saw, all the EBITDA has been across the board. All the segments have done well. And in this quarter, you could see that the flow through EBITDA going into the net profit there. On a standalone basis, if you were to see, JPL is up 12%, RRVL up 21%. And there you can see that the net profit growth in the consumer business were tempered by higher depreciation, you know, with accelerated asset growth and higher network utilization. This is just the bridge for second quarter for a year on year basis. Again, across the board, you can see all the businesses contributing. And primarily on O2C side, you can see the sharp increase there on the back of O2C. Gasoline and PVC margins, oil and gas, you know, EBITDA is driven by volumes in KGD 6. Retail benefiting from a much more broader broad-based revenue growth in each of these categories. For example, fashion and lifestyle was up 32%, grocery 33%, consumer electronics about 11%. and digital services again benefiting from the from the numbers that I talked to you on the subscriber growth as well as ARPU was slightly higher contributing to the overall mix. And this is just the sequential quarter highlighting the fact that in the OTC segment you know fuel tracks PVC delta you know helped in terms of delivering on the numbers and oil and gas the ramp up of MJ field. On retail, benefiting from the store expansion, higher footfalls that we saw, and the festive season campaigns, et cetera, all of them done their bit in terms of, you know, seeing the growth. And on digital services, data traffic growth, starting to see the benefit of Jio Bharat phone and the increase in subscribers, both on a quarter-on-quarter basis as well as year-on-year basis. And then bringing it to the balance sheet, net debt lacked in 17,727. It is lower by 8,000 crores versus what it was in March. And, you know, our operating cash flows, which we have been highlighting, funded largely the capex of 38,815, which, as you know, primarily was towards 5G rollout and also for building our retail ecosystem. And the net debt was lowered on the back of the capital raise that we did of 10,347 crores. This is for Reliance Retail, which we raised from QIA and KKR. So that is reflected in the net debt number. The amount which we have raised is an incremental 4,967 crores from Adia, you know, comes through, will come through in October. You know we do expect that the capex intensity will significantly decline given that the 5G network rollout is expected to be completed by end of this year. So overall you know cash flows continues to be strong, balance sheet is strong and the fact that we continue to have superior rating you know augurs well overall. With this, I'm going to request Kiran and Anshuman to take us through on the Jio side. Thank you. Thank you, Srikanth. As usual, we'll start with the key business updates and follow it up with operating metrics and the financials. I think the key theme this quarter has been the phenomenal rollout, which continues of Jio's true 5G. As we speak, over 1 million 5G cells are deployed by Jio on a pan-India basis, which is also being used now by more than 70 million subscribers who have migrated from our 4G services to 5G. So healthy utilization getting unlocked against the investment and the capacity that we are building. In total, more than 150,000 towers today across the country carry both the bands, the 700 megahertz band, as well as the 3,500 megahertz band spectrum with respect to our sales. And as we speak, the monthly 5G traffic has crossed 1.5 exabytes on a monthly basis. Now, the key story here is that there are nominally more than one operator, in addition to Jio, rolling out 5G across India. But the fact on the ground is that more than 85% of the 5G cells deployed in the country today are from Jio. So that is the real reason why you are seeing the rapid adoption on our network as opposed to other operators. This 5G rollout significantly enhances our already well-established competitive position in the market. We are seeing dramatic adoption across key segments, especially the youth segment. They are really heavy users of data, and we can see that the adoption of Jio to 5G is the highest in this segment. Equally, if you look at the penetration of premium devices on Jio's network, looking at the numbers that we had in March of devices which are having an average selling price of more than 20,000 rupees as a benchmark, that base has doubled since March, between March and September. So that actually indicates that the premium experience and the premium services that GeoProof 5G is rolling out across the country is also attracting people who have premium aspirations. Equally, in addition to the mobility network, we have also launched geo-air fiber, which is our fixed wireless offering, which is a promise of providing fiber-like speeds over 5G spectrum to residences. This is augmenting our already well-established geo-fiber, which is our optical fiber-based service, but really giving it, taking it to the next orbit with respect to the speed at which we can roll it out across India. And the unique thing that Jio is able to do is that because of the fact that we are rolling out the standalone version of 5G, as opposed to our competitors who are using non-standalone, we are able to use advanced technologies like network slicing, which means that we are able to create dedicated capacity for homes which are not interfering with the capacity that we are deploying for mobility, which gives superior service to both. audiences, but leveraging the same physical capacity that people on a pan-India basis. Also worth mentioning is that, I mean, there are some very interesting apps which have been, I would say, launched by some of our competitors who seem to indicate that their 5G rollouts have resulted in many people joining the network. What is really left unsaid is that more number of customers have actually left those networks. And Jio is the only operator today in the country who has a consistent positive net ads, whereas the rest of the industry is actually quite negative when it comes to net ads. Well, they can talk about the gross ads, but the net ad story, there's only Jio who has added more than 11 billion customers over the last quarter, while everybody else has kind of lost some numbers. I think another testament to the fact that we have the 85% capacity share as well as the pan-India rollout, the rapid adoption of premium customers and the youth segment on our network. All of that is further reinforced by a unique first in the world type of a recognition that we have received. Ookla, which is a well-established organization, provider of benchmarking services, especially when it comes to coverage, speed, and quality. For the very first time in the world, anywhere in the world across even developed countries and so on, for the very first time, Jio has won pretty much all the nine out of nine awards that they have announced when it comes to mobile services. Everything from the fastest mobile network to the best coverage to the overall best to the best mobile gaming experience, the best video experience, customer rating in terms of the top-rated mobile network, and specifically on 5G, the fastest 5G, the best 5G mobile gaming, and the best 5G mobile video experience. So all nine metrics that they announced, Jio has won outright. The other leg that we are very, very much focused on, and this has been a consistent theme from the times you have launched, is to eradicate 2G services from India. So this is what we call creating a 2G MOOC Bharat. Of course, our 4G network and the 5G network is fan India. It is the highest quality, most affordable network. But there remains a problem with 2G. affordability of devices which has still kept a lot of 2G customers from being able to join our network and take advantage of all of the rich services that we offer. So Jio Bharat is the recent step that we have made in that direction. We have launched a series of devices, multiple models under the umbrella of Jio Bharat. The entry price point of this device is less than a thousand rupees. which is, I would say, on par with most 2G phones, if you can think about it. And we are offering a fully capable 4G entry-level smartphone in the hands of the 2G customers in India. And we are seeing a substantial adoption of that, especially through MNP. So that means people are actually porting their numbers and coming to this device. And the real secret behind that is even on such a sharply priced device, We are able to offer a rich video experience, music experience, both on streaming, video on demand, as well as live, and even features like UPI, which obviously brings international inclusion. So all of these services are really creating a differentiated offering, even on a sharply priced device, which is something that 2G users are loving. And in addition to that entry-level price point, we are also creating a good, better, best type of a lagger, where people have an option to even go for bigger screens and other added features for slightly more, by putting in a little bit more money, they are able to go after slightly better devices as well. So great lineup of devices that we are offering to the 2G segment in India, and we are confident that this dream of 2G will happen sooner because of this. On the air fiber side, which is, like I said, the fixed wireless, we are seeing tremendous demand. We launched it very recently in a few cities across India. Very shortly, we are looking to open it up across India. What we are finding is that a large proportion of the non-fiber-covered areas are really the ones clamoring for this device, because they've seen what geofiber can do in certain parts of the country. They have a very quick way to get those services into their homes. What we are doing as we speak is obviously ramping up the entire supply chain of all the equipment that is needed to connect these homes using 5G technology, and also ramping up obviously the additional go-to-market aspects, including who can go and install these in those homes. I think really the target for us is that ambition that we have of connecting north of 100 million premises in the quickest possible way is now getting rapidly or substantially accelerated because of the airplane. And if you look at the plans that we have offered, again, there's a whole ladder of plans that people can choose from. from anywhere as low as 30 Mbps to all the way up to 1 gigabit of speed that they can choose from. At the top end, it absolutely mirrors the capabilities that we have from our optical fiber service. So there's a full lineup of services, extremely affordable, bundled with a rich bouquet of content, everything from live channels to OTT apps, including in some of the In most of the plans, even popular services like Netflix, Amazon Prime, and of course Geo Cinema from the Geo stable, in addition to 14 other well-established OTT apps, all bundled as part of the subscription that people take on AirFiber and AirFiber Nights. On the enterprise side, again, we are making quick progress. Today, as we speak, In addition to mobility and home that I spoke about, if you look at all of the large named enterprises in the country, Jio is present across 85% of them, so that means we have a relationship with more than 85% of the large and named enterprises. The top 20 banks and more than 400 DFS accounts, which is a big segment in India in the financial sector, run on Jio connectivity today. When it comes to bids from the government sector, again, we are seeing more than 80% bid rate when it comes to open bids. Again, showing recognition and adoption of Jio services, both in enterprises as well as large enterprise segment. Also heartening is that beyond connectivity, now we have a whole slew of other services spanning the Internet of Things, connectivity platform as a service and cloud. And what we are seeing is more than one out of four enterprise customers, that's more than 25% already, is using two or more geo-services. So I would say the attack rate of additional geo-services is also increasing with every passing day. And the heartening thing in all of this is that while we are deploying our 5G services, I spoke about both on the mobility and the home segment and also on the enterprise segment. The great news is that all of this is supported by our own indigenous stack that we have built and an entirely cutting-edge next-generation stack, cloud-native to the core. Today it is handling 100% of the 5G traffic that is operationalized on the Jira network. We are also now starting to deploy our own software-defined radios into our network, I would say in terms of adoption of the latest 3GPP standards, we are among the best in the world. In fact, probably even ahead of the world when it comes to adopting some of the, not just adopting, but operationalizing at scale some of the more advanced features as we spoke about in GeoDrew 5G. All of that backed by our own operating stack as well. So in addition to the core 5G technology, we also have the operation support system and the business support system. increasingly on Geo's own software stack. More than 100 unique types of network elements we are able to, both our own as well as from our global technology partners, we are able to manage through the stack. The 5G core is ORAN compliant. ORAN is one of the more advanced radio access network technologies that the world is looking to adopt. We are already compliant with respect to supporting those. And at the heart of it, such a large network with so many moving pieces cannot be managed by humans. So largely the entire AI ML stack that is required to manage this at scale and optimistically optimize it is also something that we have done. So this entire end-to-end stack which is required to operate this cutting edge 5G network is already deployed, operating at scale. And this positions us extremely well to compete in the private 5G market, which is obviously what is relevant for enterprises, not just in India, but globally. And also to be the partner of choice for many telcos, even if you're looking beyond the shores of India. So that's something that we can also feel proud about looking forward. With that, I think I'll hand it over to Anshuman, who can talk about operating numbers and financials.

Thank you, Kiran. Hi, good evening, everyone. Quick update on the operational and financial highlights for the quarter. We have seen steady growth in subscriber addition in this quarter and the numbers increased to 11.1 million. So it's been a steady increase quarter after quarter, unlike all the other operators who've been losing subscribers in this period. And scaling up of the digital platforms, combination of which has resulted in the revenues going up at the consolidated level to 26,875 crores. And EBITDA going up to 13,528 crores, a 13% year-on-year increase in EBITDA. As I said, 11.1 million subscribers net addition during the quarter. So we ended the quarter at 459.7 million subscribers with an ARPU of 181.7 rupees. The ARPU has been growing again steadily quarter after quarter, but mostly on account of the improvement in subscriber mix as well as greater data consumption. Please do keep in mind that we currently do not charge for the 5G services until such time that the services are commercially made available. We are still rolling out the network. So that data consumption is not leading to any additional revenue at this point in time. In terms of data traffic, very strong growth. The total data traffic for the quarter was 36.3 exabyte, up 29% year on year, with increasing usage on both the 5G network as well as higher engagement on the home STBs. So we're leading the industry transition now into the 5G phase on the mobility side with our 5G superior network and the GeoBara devices for the 2G users for them to upgrade to digital services. And then the air fiber for homes and SMEs, which is also now launched and gradually ramping up in the market. As I said, we have been increasing the pace of subscriber addition with our superior network and better quality service offerings that we're giving. Over the last four quarters, the pace of subscriber addition has picked up. And with the 5G rollout getting completed, they should only accelerate. We added three exabytes of data traffic for the last two consecutive quarters. So data traction, the overall data consumption on the network continues to grow very, very rapidly. and that's a healthy sign um as you know we are always very focused on creating the the whole digital ecosystem getting people more engaged more active on the network that clearly is happening over the last few quarters the per capita monthly data usage has increased by 20 year on year to 26.6 gb per user per month now and the air fiber will further accelerate the subscriber momentum in the next uh next few quarters Coming to the key operating matrices for RJIL, our connectivity business, the customer base, as I said, we ended the quarter at 459.7 million subscribers. That was a net customer addition of 11.1. Our pool for the quarter came in at 181.7. And, you know, this was mainly on account of increased, you know, better subscriber mix and increased data usage. Again, reminding that we are not currently charging for any of the 5G data consumption on the network. The total data consumption was at 3.6, 3,600 crore dBs, and voice consumption continues to remain very healthy. Moving on to the financial numbers for RJIL, the connectivity business, the operating revenue for the quarter was at 24,750 crores and the EBITDA was at 13,059 crores. EBITDA margin increased further to 52.8%, playing on the operating leverage theme that we've spoken about. And as we start getting more traction on 5G and home, we expect this to continue to grow further. And a summary of the Geo Platforms Limited consolidated financials. Gross revenue for the quarter was at 31,537 crores. Operating revenues at 26,875, which in dollar terms is $3.2 billion for the quarter. EBITDA came in at 13,500 crores. So $1.63 billion for the quarter. EBITDA margin at 50.3%. And profit after tax of 5,300 crores. Growing... by 4% quarter on quarter, but almost just 16 to 17% on 12% YOY growth in the profit after tax for this quarter. With that, I'm going to hand over to Dinesh to go over the results summary for Reliance Retail.