Reliance Industries Limited

Welcome to the third quarter of financial year 2021 business presentation of clients and districts. We have Mr. Srikant, our group CFO, first off, talking about consolidated financials, followed by Kevin, who will talk about the digital services. Anshul, who will present the performance of our digital services business, followed by who will talk about Reliance Retail, Sanjay Rai, who will talk about BNP, and then Shrikant will come and speak about what to see and the summary and definition. Thank you and good luck to you, Shrikant.

Thanks, Srini. So I'll just spend a few minutes on the consolidated results before I hand it over to my colleagues for business-wise. So starting with EBITDA at 44,700 crores, this is up 17% year on year. Net profit at 19,641, up 11% year on year. And here the earnings have been led by very strong performance in retail and oil and gas. Digital services has been steady and, you know, a 1% increase in O2C. In retail, we have seen very strong momentum. There is expansion of footprint. We are seeing higher footfalls. In digital services, we have added, you know, the number of customer ads in this quarter and also importantly on a year-on-year basis has been very strong. We completed the 5G rollout on a pan-India basis. In O2C, it has been a resilient performance despite major planned maintenance shutdown that you are aware of. And also downstream margin environment, as you know, has been a bit weak. Had it not been for the shutdown, you know, we would have on OTC basis been higher on a year-on-year basis and the performance would have been comparable even to the previous quarter. In oil and gas, you know, benefiting from ramp-up in MJ1 production and now KGD6 contributes 30% of India's gas production. A quick summary of the numbers, as you can see, revenue in retail is up 23%, EBITDA at 6,258 is up 31%. So clearly you can see the benefit of operating leverage kicking in. Overall area operated in million square feet at close to 73 million is about 21% higher. And we saw growth across segments, footfalls higher by 40%. You know, we added about 252 stores. And when you see on a year on year basis, we have added 1,549 stores. And the percentage of digital and new commerce revenues as a percentage of total still at 19%. So it's a very, very fast expanding base. So it's a good set of performance there. In digital services, you know, revenue EBITDA up about 11.5%. I talked about customer ads, we added 11.2 million net customers in subscribers in this quarter. And for the whole year, it is 38 million, very strong performance there. Data traffic continues to be strong, 32% on a year on year basis. And, you know, this true 5G is now available across India and 90 million subscribers have migrated to the 5G network. On O2C side, revenue is slightly lower. You saw Brent being about 5.5% lower on year-on-year basis. EBITDA at 14,064, a percent up. As you know, I talked about the planned maintenance shutdown for major units. Also, there has been Downstream chemical deltas have been weak anywhere between 4 and 17 percent when it comes to, you know, lower deltas there. And, you know, clearly supply overhang is there. Demand has been weak. That's on the downside on the on the. market side there, but we have been able to compensate it with domestic demand being able to place there because India oil demand is up 2%, polymer is up 10%. Gasoline has played an important role in compensating. There has been a recovery in fuel retailing and also the benefit of ethane versus naphtha was fully felt in this quarter. On the oil and gas side, at 5,804, it is the best ever quarterly EBITDA. As you can see from the chart, KGD6 production almost up 73% and revenue in EBITDA up 50%. And, you know, now KGD6 production is almost 30 mm ACMD. It's, as you know, a significant contributor to the transition fuel availability for the country. So bringing these numbers together, you can see revenue at 2,48,000 crores, up 3%, lower O2C, higher retail. On EBITDA side, as I said, 44,678, it's up 17%. This is despite the very large shutdown in CDU, in COPR, in FCCU, and also the off-gas cracker. Had it not been, as I mentioned, EBITDA would have seen a year-on-year growth and the numbers would have been pretty similar to what it was in the previous quarter. And as you can see, the EBITDA flow through, despite higher finance and depreciation, we have delivered a net profit of 19,641, which is up 11%. And when you look at it from entity-wise, RL almost close to 10,000 crores, JPL at 5,500 crores, RRVL at 3,200 crores. So RRVL, you can see EBITDA growth at 30% and even the net profit growth is almost in the same range. So quick one on the bridge, year-on-year bridge, as you can see, every business has delivered in terms of growth, oil and gas, retail, digital services and others too. But as I mentioned, O2C has been in a stable event and a weak downstream market environment. We have done a lot to offset some of that market weakness. by focusing on crude sourcing, by focusing on lithium cracking, by placing more products in the domestic market. Oil and gas, as I mentioned, higher volumes helping deliver 50% increase. Retail, very broad-based and, you know, grocery sales up 41%, fashion and lifestyle up 28%, consumer electronics up 19%. On digital services, healthy subscriber growth and also improvement in the ARPU site. And others reflect multiple factors across other businesses which have done well, focus on cost, improvement in treasury income, all of them have helped deliver the other segment. And on a sequential basis, you know, barring O2C that I talked about, you can see a strong growth. On the oil and gas side, in the previous quarter, we had costs related to field commissioning and decommissioning, which is not there this quarter. And so that explains the jump there. Otherwise, on retail and digital services, retail earnings, as you know, sequentially has gone up by 7%. and you have seen performance in digital services too. And coming to net debt, marginal change in net debt, 1,19,372, very similar to what we had in September 23. You know, we have been talking about moderation of capex and you can see that overall capex is now for this quarter 30,000 crores. It was about close to 39,000 crores in the previous quarter and a year before that too it was there. So clearly you can see that the intensity has come down. Otherwise, fair to say that, you know, cash flows remain strong, balance sheet is strong, and the moderation in capex, you know, will continue to help value creation. With this, I'm going to hand it over to Kiran. Thank you, Srikant.

We had one year, nearly one year, in fact, a shade over one year into the rollout of our true 5G services. And as Srikant alluded to in his opening remarks, Nearly 90 million subscribers have already migrated to 5G on our network. And another great thing that we can talk about is that this entire 5G deployment and the traffic coming from the 90 million subscribers are all carried on our own core, which has been built and deployed on a pan-India basis. If you see the The graphics on this chart, just a year ago in December of 2022, we can say that India was 5G dark. And if you look now at the situation as we complete December of 2023 and now we are into the new year, we can truly say that India is now 5G light, bright. And obviously, this superior network has really strengthened our position when it comes to the mobility service. Our 5G availability on a pan-India basis, on a quantitative basis is nearly three times that of our nearest competitor. And even in terms of quality, the overall download speeds on our network is nearly two times that, again, of our nearest competitor. So I'm glad to say that overall, Jio has completed the true 5G network rollout as promised, well ahead of the schedule of this Pan-India deployment. This is also reflected in the fact that we are becoming the preferred choice for subscribers. If you look at the graphic again on the right, you can see that as the industry overall has had a nearly flat 0.7% growth on a year-on-year customer base basis. But the stark difference is between the growth numbers delivered by Jio on a year-on-year basis as compared to the rest of the competition. While the rest of the competition actually has seen degrowth of nearly 3%, negative 3%, Jio has shown a nearly 7.5% increase in its subscriber base. All of this is a testament to the fact that our 5G service is really pushing the envelope even further. We were already considered one of the best quality, highest quality networks anywhere in the world. But now that gap between Jio's 5G network and that of our competitors has increased substantially. If you look at another number, which is the net portent numbers, this also indicates the intra-competitor movement, rather inter-competitor movement of customers from one operator to the next. In terms of portent, again, we have been nearly two and a half times of our nearest competitor in terms of net portents. So this is actually all these metrics are pointing to the fact that our 5G network is really positioning us as the preferred choice even beyond what we already were. and the numbers both in terms of subscriber additions and growth as well as the net portent numbers is a testament to the fact that we are now extending that lead over our competitors. Another initiative that we were consistently speaking about over the last few quarters is the Jio Bharat initiative. Now this is also a very concerted effort that we undertook to move the 2G base, which is largely a captive base with our competitors, but to bring them on to the 4G base at least to begin with. So really, the fact that we were able to completely design, manufacture, and distribute a 4G device which is on par or even cheaper than comparable 2G phones from a handset price perspective And now those are translating into some very, very, very encouraging numbers in the market. If you see that in the less than thousand rupee price segment, which is really where the 2G phones operate, Jio Bharat just in the short period after its launch is now seeing nearly 45% market share in the shipments which are happening on them. on a month-on-month basis. Also, if you see the growth that we are seeing, the geo leadership growth that we are seeing in the rural markets, again, the market where I think this product has been targeted at largely since the GeoBharat launch, we have also seen the growth in our subscriber base coming from the rural markets, the net additions that are happening in those rural markets have now grown to become nearly five and a half times of our nearest competitor. So our net ads are five and a half times that of our nearest competitor. And even within our own network, if you see just before GeoBharat launch, again, the graphic on the right, we still had a lead, but the lead was, you could say that while the net ads in millions, while our competitors were adding about 3 million Net ads, you could see that we were adding nearly double of that, 5.6 million customers. But post-GeoBarrows launch, if you see the real drop-off in the net ad picture coming from our competitors, while our numbers have really strengthened even further. That's really the 5.2 times the nearest competitor number that I was speaking about. Also in terms of engagement, almost all of those features, including live TV playback in Jio Cinema, which is a hero use case because people could never imagine that kind of a service of live television being available on such a handset. So that's really picked up the Jio Bharat users because financial transactions and UPI payments were another strong use case that we were promoting with such a device. and nearly 60% of the total UPI 123 transactions, which are really those transactions originating from these low enhancements, is now contributed by Jio Bharat. Coming to the home, while we had a market leading service in Jio Fiber, but using our 5G service, a Pan India 5G service, we are really now supercharging our home broadband delivery as well through what we call air fiber. And really, you could argue that the big cities were reasonably well served through our optical fiber network. But as soon as your air fiber got launched, we are seeing really demand getting unlocked from the tier three, tier four towns and rural markets where this is a completely unique service. There is no other competitor to speak of. And the fiber quality broadband service powered by our 5G network is really finding traction in those markets. And also the fact that we are using our own technology, our own 5G core to carry traffic, the real heavy traffic that is really coming from the homes also means that we are able to do it extremely cost effectively. I mean, obviously, like I said, in many of these markets, we are the only name in town. But even if you look at global comparables, we are among the cheapest anywhere in the world. Also, I mean, this is quite a pleasant surprise for us. But we had a rich bouquet of content that we are also bundling to encourage adoption, especially when we go to these markets where people don't have a habit of or even awareness of having used these kind of services. But what we are really seeing is that geo air fiber is actually on a like-to-like basis against a geo fiber service. We are seeing a per capita usage, which is nearly 30 times more than our optical fiber service. Thanks to a lot of that, thanks to the content that is also bundled with it. But really this habit formation and adoption is really encouraging as we are really picking up the pace when it comes to rolling out air fiber across the country. Talking about enterprise, again, very strong growth that we are continuing to see. I think almost more than 80% of the large enterprises are already Jio customers. But if you look at it, 33% of the large named enterprises now have graduated beyond connectivity. So they are using two or more of Jio services. That means a basic connectivity service and one or more of our digital services, which we are also vertical and horizontal digital services are now increasingly getting bundled along with our connectivity service as we serve these customers holistically. Just to give an example of penetration in some of these critical industries, if you look at the top 10 banks in India, nearly 50% of the branches of the top 10 banks today run on Jio network. And that gives us a foot in the door to even bring some of these additional digital services also to grow that engagement with these large enterprises. In fact, in many of the cases, now the situation is looking to reverse. Earlier, network was the driving force and digital services was an add-on. But now if you see the recent trends, nearly 20% of the new deal wins that we are winning in the enterprise is actually driven by a non-network service, which also shows that digital services are truly coming into its own. Um, and again, like to like, uh, if you see, uh, over the last, uh, uh, year, there has been a 1.3 X increase in revenues. If you look like to like from the top a hundred accounts that we have had, there's been a 30% growth. Um, if you look at the, the number of accounts who are actually contributing to more than five gross, that's like a watermark. Uh, that number has also increased to, um, to the early 50% more than what it was last year. So I wanted to have 1.5 X increase in the number of accounts there. And obviously, professional services and retail and education. These are three key sectors which are beyond the large enterprises when we get into the SMBs. Again, we are seeing a lot of demand coming from these sectors, so schools, training institutes, and so on. Professional services being the people like lawyers and accountants and so on, and obviously small retail. I think these are three large sections within SMBs the Indian economy and we are seeing a lot of adoption and a lot of demand coming from these sectors. So when I was speaking about the digital service and the growing portfolio of services that we are now well positioned to offer looking into the future, on this slide we are just showcasing a few of those which we had introduced and unveiled during the India Mobile Congress last year in 2023. Everything from what we call geospace fiber, which is the gigabit satellite connectivity that we are bringing to India. GeoCloud, which is our compute platform, which is now built and being offered to enterprises. Increasing adoption of AI, so some of the SMB and skill development type of applications, again, that we showcased. Gaming, which is, again, augmenting the fact that we have a very strong home play But how do we bring cloud gaming, which is doing away with the need for expensive consoles and therefore creating mass scale adoption of games into Indian households? And we have a very young population who would absolutely love to engage with these kind of offerings, assuming it is affordable. And that's what we are able to do with the cloud approach towards delivering this. Connected vehicles, again, we are becoming a partner both to connect and also to bring digital automation to a number of vehicle brands. And some of those examples also we showcased. As 5G is getting rolled out across the country, some of the large manufacturing locations and large enterprises would like to have what is called private 5G, which means a dedicated installation just to power a factory location or a large campus. And that's also something that we showcased in a very small server. We can actually plug it into their data center, and they can really be up and running with the 5G network in their campus. Again, thanks to the fact that this 5G core is something that is homegrown, we are able to package that in very interesting ways to even support private 5G use cases. And beyond that, obviously, things like healthcare, agriculture, these are some critical sectors of the economy. And again, we were able to showcase certain IoT-type solutions, again, taking advantage of both our 4G and 5G network, which is now ubiquitous across the country. And beyond the products, I think we are also entering into what is called managed services. And here basically what we are trying to do is helping our customers, enterprise and small and medium customers with everything from advisory to implementation as well as ongoing management of the entire digital set of services that they would need. And that's also unlocking a lot of service revenues for us going looking into the future. So I think the network story is unfolding well, both in the mobility, the home and the enterprise segment and the digital services contribution towards the the contribution towards both account wins as well as the year on year growth in the per account revenues. All of that is now looking in a pretty good shape as we head into the new year. I think on the operating and financial highlights, I'll request my colleague Anshuman to step in here.