Reliance Industries Limited

Good evening and welcome to the financial research presentation for the full year of 2023 and the fourth quarter of financial year 2024. We have Srikanth who will first talk about our consolidated financials followed by Kiran who will give the highlights of digital services business and Akshuman who will walk you through the financials for the digital services business. Dinesh will then take over and speak about the salient performance of Reliance Retail followed by Sanjay Roy who will talk about ENP and then Srikant will come back to talk about the O2C business, the summary and he will close out. Thank you for coming on a Monday evening. Over to you, Srikant.

Yeah, thanks. And good evening to all of you. Starting off with 23-24, looking at the full year picture, the year of milestones, we have crossed a lakh and 75,000 crores in EBITDA, more than 100,000 crores in PBT, more than 20 lakh crores in terms of market cap. On JPL side, 100,000 crore mark we've crossed and 20,000 crores net profit and of course completed the fastest rollout for our 5G network. On RRVL, we have crossed the 300,000 crore mark and net profit of 10,000 crore plus. And, you know, we have more than 75 million square feet. So clearly, you know, we are the first Indian company to cross these milestones on standalone basis. If you were to look, JPL and RRVL at this level, you know, would be among the top 20 and top 30 companies respectively. Looking at 23-24, EBITDA lacking 79,000 crores up 16% year-on-year. We delivered net profit of 79,000 crores up 7.3%. When you look at our consumer business, EBITDA now close to 80,000 crores, which is up almost 17% year-on-year. Five-year CAGR for our consumer business at 30%. And this has been enabled on the back of larger physical and digital footprint, increase in footfalls, the increase in the number of transactions, increase in the number of registered subscribers. On 5G, it is on the back of higher customer engagement, 5G rollout, and FTTH penetration. A highlight also has been the resilient OTC performance, given what we are seeing on cracks. And this has obviously been aided by significant operational flexibility, focus on feedstock optimization, light feed cracking and high domestic placement helped us overcome uh the you know the challenging environment on the oil and gas uh led entirely by ramp up in kgd6 production um our balance sheet uh net debt has been falling and the cap extend also has been lower in all in all we have delivered you know our EBITDA has doubled in the last five years Just key highlights here, you can see that for retail revenue up 18 percent, up 29 percent. We have seen margin expansion. As I mentioned, food falls greater than a billion, which is 36 percent higher, 300 million registered customers we have now. Our own fashion and lifestyle brands are now driving growth. Three brands have more than 2000 crores of annual sales. On digital services, you know, it's been about 12 to 13% across revenue and EBITDA. And our EBITDA margin at 50.2%, it is also higher by 50 business points. And overall, when you look at it, we stand out in terms of the net subscriber ad of 42.4 million. Data traffic is up 31% year on year. And we have now 108 million subscribers transitioned to 5G. On O2C side, EBITDA at 62,393, half a percent higher. The context being the weak margin environment globally. Also the environment, you know, when you look at some of the downstream petrochemical deltas, they are all multi-decade lows on the back of supply overrun. What we have been able to offset this week margin environment by focusing on light feed cracking, on focusing on feedstock sourcing and optimization. And of course, it was helped by the fact that the domestic demand environment has been pretty strong. You know, for example, on polymer side, we have seen a 14% increase in demand year on year basis. Oil and gas, the story, 20,191 crores. This is really the highest EBITDA that we have reported. This is up about 49%. This is on the back of KGT6 production, which in itself was up 57%. It was to some extent that volume was, growth was offset by the fact that there has been a 5% decrease in KGT6 price realization. Bringing these numbers together, revenue at 10 lakh crores, you know, up 2.6%, and the revenue growth is muted because, as you may have observed, that oil prices declined by 13.5%, you know, on a year-on-year basis. And overall, when you see EBITDA growth of 16, you saw that other than OTC, the other businesses had strong growth. um pbt at uh uh was about 11.4 percent uh as i mentioned it was uh one lakh pro mark it crossed um overall net profit was uh up on 7.3 percent even though ppt was up 11.4 percent because uh as you may recall in the last year uh you know we did avail of uh uh took avail of all the tax credit that were available and now we are uh back to normal tax really led by oil and gas on volumes retail because of categories and margin expansion digital services on the back of strong subscriber growth and operating leverage and others really reflect contribution from other businesses higher treasury income and and the focus on cost which has helped us reduce some of the unallocable expenses This is moving to the fourth quarter numbers standalone. EBITDA at 47,150 up 14%. and net profit of 21,243, which is really flat on a year-on-year basis. And as I was mentioning, revenue is up because we saw double-digit growth in both O2C and consumer business. EBITDA, we have seen the contribution from across businesses and particularly big growth in KGD6-related EBITDA. Overall net profit was muted only because of the fact that we availed of the tax credits particularly in the fourth quarter of last year. However, when you see the quarter on quarter, you can see there is a sharp increase and that is primarily coming because of O2C where post maintenance and inspection we saw an increase in volumes. Also, when you look at the individual net profits, you can see that JPL is actually for the quarter is 5600 crores. RREL is about close to 2700 crores. So strong EBITDA growth. You know, we have a portfolio of very dynamic businesses which are doing well. This is just the bridge and you can see that the biggest contribution here is on a year-on-year basis coming from oil and gas and all the other businesses have also done well. The fact that all units are operational post the M&I turnaround. We also saw sustained performance with marginal declines in volume there. And on the retail side, store rationalization and seasonally affected this performance. Digital services, you know, we had 11 million customer addition in this quarter, which primarily drove the earnings there. And on the balance sheet side, you can see that net debt is down by 10,000 crores. It was 126,000 crores in March 2023, now down to 116. And you can also note that the capex for the year is lacking 32,000, which is about You know, last time it was 142. So there has been a 10,000 crore reduction in capex, as well as the fact that the capex for the year, you know, if you compare it to the cash profits of a lack and 42,000 crores. So the capex is lower than the cash profit that we have. and uh clearly this is uh you know we have talked about keeping net debt a bit below one and at these levels it will be about 0.65 and um you know going forward uh this kind of balance sheet provides unparalleled financial flexibility and uh you know we'll continue to keep track of these ratios with this uh uh i'm giving it to uh kiran yeah thank you srikanth

So let's start the update on the digital services piece with our true 5G network. As on date, more than 100 million, in fact, 108 million subscribers have migrated to Jio's true 5G services. And if you look at the total traffic that is now being carried or being contributed by these 5G subscribers on a 5G network, it is now approaching 30% of the mobility data traffic, cumulative mobility data traffic. Just keep in mind that it is just about a year and a half since we actually started rolling out our 5G network, and these are staggering numbers for such a short period of time. In terms of quality as well, Ookla, who's always monitoring the quality of various mobility services, especially now 5G services in India, Okla has rated Jio 5G the best network in terms of pretty much every metric. Availability, latency, normal data consumption, video quality across the board on pretty much every parameter that they monitor, Jio is now number one. As a result, you see on the infographic on the right, India is one of the shining lights across the globe with 100%, near 100% coverage of the landmass of the country. using the most advanced 5G services available globally, which is the standalone 5G. And it also means that Jio on its own today has the world's largest 5G subscriber base outside of China. So China obviously has a head start. They have been rolling out 5G for now nearly approaching five odd years. But in just about a year and a half, we have reached the number two position just behind China. In terms of subscriber share as well, so all of these factors, including obviously our 4G network, but now with 5G kicking in in full gear, we continue to gain subscriber share. If you look at just over the last year or so, if you take March 23 position versus what we have in just a month back, we have seen a nearly 3% increase in subscriber market share. And this is not just in any one part of the country or the other. It is across all circles, whether it's a metro circle, whether it is a category A, B or C circle. Across all circle categories, we have seen a strengthening in our subscriber market share numbers. And it's largely also driven by the fact that now we have one of the world's best 5G networks working at scale. And of course, the Geo Bharat ecosystem on the other end is now bringing in what used to be 2G subscribers now onto our 4G network. So that's also increasing adoption. And of course, there are a number of very interesting partnerships that we've been able to create with premium smartphones because 5G and premium smartphones kind of go hand in hand because the true power of a smartphone is showcased by our 5G network and the other way around. So all of these engines firing would mean that we are strengthening our market leadership And this is a story that will continue to unfold into the future as well. Just a small infographic, I think, if you can play that animation. This is just showing how our 5G network over the last, like I said, 18 odd months has really come alive. And the real picture to take from this infographic is the fact that it is not a regional phenomenon. It is not a big city phenomenon. If you look at pretty much across the landmass of India, you can see that now our 5G network is present. And the growth in 5G adoption is largely now dictated only by the adoption of 5G smartphones. Otherwise, our network is now present across the country. We have seen growth in subscriber base, like I said, across all circle categories. So this is just an infographic that gives you a visual appeal, a visual feel for what that journey has been. Now turning to our The other dimension of how our 5G network is helping bringing broadband to India, this is on our fixed wireless strategy to go after homes and other fixed premises. We used to have what we call the geo-fiber story, which has obviously been growing slowly but steadily over the past many years. But again, now with geo-air fiber coming in, we are in a position today to offer our fiber-like broadband through geo air fiber to nearly 6,000 towns across the country. And again, what is very heartening to see is that the air fiber availability is really translating into a very, very healthy demand, not only in the big cities, but we are seeing that more adoption is actually coming from tier two towns because that has been the area where the demand has been the greatest, but Reaching optical fiber to those towns has been time consuming, but now with geo air fiber available in thousands of cities, that's really where we are seeing the strongest adoption. And of course, just like with geo fiber, even geo air fiber comes with a suite of digital content bundled with the tariff plan that subscribers sign up for. And all of that is really translating into very strong engagement as well. So not just adoption, but usage in terms of almost per capita monthly consumption of nearly 400 GB. It's like approaching half a terabyte per month kind of a usage on geo air fiber. And this increased distribution and presence means that our home strategy will also see now an accelerating momentum into the future. Coming to small businesses, which is also one of the other segments which has been hitherto underserved because they also are another category of fixed premises. So like we speak about media bundling, when we are going to these small businesses, what we are actually talking about is a whole bundle which is relevant for businesses. So if you look to the right, everything from connectivity through fiber and air fiber, inside their offices or premises, we are offering an end-to-end managed Wi-Fi service. And in four key segments, which are very large segments in the country, if you take, for example, hotels or small manufacturers or schools and colleges and hospitals, these are four very specific categories that we have selected where we are also taking very interesting software solutions to that market on our own and through partnerships. So, for example, if you take hotels, in addition to connectivity and Wi-Fi, we are offering an entire hotel management solution which also bundles in entertainment for the guests who are coming to those hotels. If you look at manufacturing, we are taking in security and surveillance solutions because that's what's necessary to have governance for all of those activities that happen. If you take colleges, obviously, again, ubiquitous connectivity and school and college management solutions. And likewise with hospitals, we are giving them hospital information management solutions as well as again for the patients who are admitted in those hospitals, providing connectivity in room as well as also entertainment solutions for both for the patients as well as their guests. So putting together some of the proven solutions, but making it very relevant. to these verticals is also seeing an increasing adoption, not just of connectivity, but also digital services, broadly speaking. Talking about the numbers now turning to revenue, the consolidated revenue for this year approaching now nearly 110,000 crores, which is almost a 12% year-on-year growth when you look at this financial year as compared to the previous financial year. The consolidated EBITDA, nearly 55,000 crore, And that's also growing even faster at nearly 12.8 or nearly 13% year-on-year. Looking at the quarter, for the fourth quarter, again, the consolidated revenues were at a higher run rate if you look at it on an annualized basis. Revenues at 28,871 crores and EBITDA at 14,360 crores. Today, the subscriber base stands at 481.8 million as on March 2024. and the ARPUs across such a large base is now at 181 or nearly 182 rupees per subscriber. The monthly traffic on Jio also now crossed 14 exabytes per month. Total traffic for the quarter at 40 exabytes up 35% year on year. And this is all being driven by, like I mentioned, the accelerating adoption of 5G as well as the growing penetration of home broadband, both with geo fiber and geo air fiber. And again, like I mentioned, geo air fiber is translating into good demand, not just in the big cities, but also now going towards tier two and beyond. Looking at the data traffic, just giving you a growth. Ever since we came out of COVID, really if you see why there was a very healthy uptick through COVID because that was the only lifeline that people had. And again, like I said, the 5G rollout and the home connects is contributing tremendously to that. And if you look at the per capita monthly data consumption, It is now nearly approaching a gigabyte of consumption per day. Earlier we used to talk about gigabytes per month. Now I think soon we'll have to talk about gigabytes per day. So at 28.7 GB, very quickly approaching the 30 GB per month mark. And again, all of this is largely being driven by the fact that Jio's network continues to be not just a leader in... to our growing story that we are unfolding for the country in terms of digital adoption. With that, I will hand it over to my colleague, Anshuman, who will talk about the operating and financial metrics.