Reliance Industries Limited

Good evening and welcome to the first quarter financial year 2024-2025 financial resource presentation of Reliance Industries. As always we will have Srikanth walk you through the consolidated performance followed by Anshuman Thakur, who will give you the overview of Jio's performance, Dinesh Dhaduja on retail, Sanjay Roy on ELP, then Srikanth will come back to talk about O2C and summarize our performance.

Over to you, Srikanth. Thanks, Renu, and good evening to all of you. Starting with the performance, EBITDA at 42,748, up 2% year-on-year. This is important for me to say that the growth in consumer business and strong upstream offset we go to see. On retail, we have seen a growth led by grocery and consumer electronics and also improvements in the overall customer engagement, as well as on contribution from digital channels. On the digital side, benefits coming from healthy subscriber addition, and also increasing FTTH penetration. Overall, on the O2C side, we will see it later on, but, you know, clearly declining fuel cracks and challenging downstream margin environment. In oil and gas, led by high volumes, which was offset a little bit by lower price realization. So for us, the diversified portfolio helped deliver this performance, with consumer being more than half of the overall earnings. Specifically on retail, you can see revenues at almost 76,000 crores, EBITDA about 5,700 crores. They are up about 8% and about 10.5%. Overall PAT at 2,549, up close to 5%. And you can see some of the operational metrics like footfall, 296 million, up 19%. Registered customer base at 316, up 18%. When you look at revenue and EBITDA growth, it includes the fact that we had a strong consumer electronics, you know, business growth, specifically ACs and refrigerators and TV. We also had strong performance in grocery stores. Some of the sales that we did showed high traction with almost 30% year-on-year growth. However, on fashion and lifestyle, it was much more tepid with discretionary demand being lower. So that in some sense, that was the consumer electronics and grocery, it was on the lower side. The revenue and EBITDA growth also covers for the fact that, you know, there was a streamlining of operations with focus on margin improvement. And as you can see, year on year, there has been an improvement of margin by almost 30 basis points at 8.5%. Also, when you look at the while the cross ads were at 331, you can see that the net ads were about 82 stores. So the also the performance covers for the fact that, you know, we continue to focus on. enhancing the tech platform, focus on supply chain and distribution capabilities. This is more for us to maintain the growth momentum both in the near and medium term. So for us, you know, strengthening the market leadership in a structurally long-term growth industry, that's really what has been the focus here. On digital side, revenues in EBITDA up, you know, revenues at 12.8% and 11.6% for EBITDA, almost 15,000 crores of EBITDA. This is on the back of subscriber addition. We added 41 million on a year-on-year basis and 8 million in just this water. Data traffic data, you can see it's about almost 33% at 44.1 billion GB. and 130 million subscribers migrated to Jio through 5G. And Sanchuman will cover, you know, we are now... At this level, we are the largest operator in the world when you look at data capacity and what we handle. Also, you know, we'll be the second largest in terms of 5G subscribers. So, and as you know, the tariff hike happened and the benefits of the tariff hike will be seen in the coming quarters. On the O2C side, as you can see, 13,100 crores have been dug. lowered 14% on a year-on-year basis. And that is primarily driven by gasoline cracks, which was down 30%. PE was down. PP was down anywhere between 16% to 17%. Polyester chain integrated deltas were also lowered by 15%. These are big products, and you could see these are big falls in terms of margin. But it was partially offset by the fact that we continue to benefit from being able to crack ethane, and also the domestic demand both for oil, polymer, polyester held well. Overall, when you see the performance, you know, energy markets, you're seeing this kind of volatility in earnings, you know, different points in time. It is geopolitics, it's weather, it is outages, it's refining capacity. So when you look back over the last eight quarters, you know, we have seen EBITDA ranging anywhere between 12,000 crores to 20,000 crores. But overall, fair to say that the structural drivers of the business remains fairly very constructive. And so, therefore, these performances would have to be seen in that context. Oil and gas, 5,210 crores of EBITDA, it's up 30%. This was on the back of volume increase, as you can see, KGDC's production up 44% on a year-on-year basis. However, there was price correction of decrease of about 14%, resulting in a net EBITDA of 30%. Overall, we now have gas of almost 29 mCV. It used to be 20 same time last year, and oil and condensate production of almost 22,000 barrels per day. This is the overall financial results as I was highlighting to you. Revenue at 2,58,000 crores, up 11.5%, as you know, both because of OTC revenues being higher because oil prices were much higher than what it was a year back. Also, it is also on the back of growth in retail. EBITDA, we spoke about overall growth of 2% with consumer businesses more than offsetting the sharp reduction in OTC performance given the broader operating context there. And therefore, you could see the translation coming to in terms of PAT at 17,500, which was lower by 4.5% on a year-on-year basis. Just the bridge, when you see year-on-year comparison, I talked about cracks, gasoline, PPP, polyester chain being lower. I talked about oil and gas benefiting from higher volume, but to some extent offset by lower price there. Retail benefiting from store expansion and increasing footfalls. Digital side benefiting from customer ad. I mentioned about 41 million year-on-year. And also the fact that people are using more, 33% increase in data traffic now per user per month is almost 30 GB per customer. So you're seeing good traction in terms of consumption of services. On the quarter-on-quarter side, predominantly what you see and hear, the product mix was slightly different in the sense that the big fall you saw was really in gasoline, gas oil, and ATF, which was down about 36% to 37%. There was actually an uptick in terms of downstream with PVC up 17% and PE up 7%. Oil and gas was marginal declines in volume that we saw, and realization also was marginally lower. On retail, the effect of lower discretion is spent especially on fashion and lifestyle. And the fact that I refer to the streamlining of operations and the focus on some of the other areas that I talked about. And digital services, a strong traction with 8 million customers being added on the network. And also good traction on GOF, which Anshuman will talk about. Overall net debt at about a lack in 12,000 crores versus a lack in 16,281 in March. And CapEx overall, 29,000 crores, which is much lesser than the cash profits that we have been generating, and also significantly lower than the CapEx of close to 39,000, which we had same time last year. Overall net debt a bit well within the very conservative framework that we have. So we have the balance sheet strength to deliver on some of the growth initiatives that we have, and importantly for generating value. With this, I'm handing it over to Anshuman.

Thank you, Shrikanth. Good evening, everyone. I'll take you through the results of the digital services business NGO. In terms of the highlights for the quarter. The JPL consolidated revenues came in at 29,449 crores, which is a growth of 12.8% YOY, and EBITDA at 14,638 crores. So fairly healthy growth driven by, you know, a combination of things. Operating performance was good. Subscriber uptake of new services was good. And we continue to see good traction across all of the services, service offerings. The subscriber base for the quarter ended at 489.7 million, which was a net addition of 8 million for the quarter. The 5G subscriber base was close to 130 million, which makes Jio the largest 5G subscriber base outside of China. ARCO for the quarter came in at 181.7 rupees, which was almost at the same level as the last previous quarter. Again, a combination of things here, some improvement because of increased utilization. But given the promotional efforts at this point in time for promoting 5G consumption, I would just remind you that this does not factor in any of the tariff increase. The tariff increase happened after the quarter had ended. On the data consumption itself, we saw a very healthy growth trend, 33% year-on-year increase in data traffic. at 45, almost close, 44, a bit over 44 exabyte for a quarter, which now makes us, makes Jio the world's largest operator in terms of data traffic. And this is compared with all of the other operators. So not, you know, that excluding China, Qualifier does not apply here. Also, 5G now accounts for 31% of the overall wireless data traffic. So very healthy growth in 5G. The subscribers are consuming a lot of data and the per capita data consumption is growing fairly rapidly. On the fixed wireless or the homes front, our FTTH business continues to do well and grow healthily. The fixed wireless business is also, we crossed a million connections there, and the performance has been very steady. The data consumption, customer engagement matrices are all very healthy. We continue to build on the number one position that we have in home broadband services with more than 60% share of the industry net add. All in all, fairly healthy, good, robust performance, good growth. The growth momentum being driven by the 5G mobility and air fiber, very high data consumption uptake. So, you know, the things that we're targeting have been delivered quite well this quarter. So, as I said, the transition to 5G has been ahead of schedule. People are taking up 5G services very rapidly. We have the world's largest 5G subscriber base outside of China at close to 130 million. And the 5G data accounting for 31% of the overall data traffic on the Jio network. All of this data has been carried on our own 5G plus 4G combo core. So this is our own network, you know, the core network that you had put together that is carrying all of this traffic and our tech capabilities are getting validated on the field with extremely high utilization by, you know, in terms of both number of subscribers and overall data consumption. Writing on the benefits of 5G, we started launching some new services in the market as well. You would have come across some of these GeoSafe, which is an app for ultra-secure communication, quantum-level security on a 5G network. Now, given our standalone 5G network, we are able to do some of these things, which would not have been possible on any other network, or even on 5G is only possible with the standalone configuration that we've got. GeoTranslate, another app, which with now fairly, you know, the quality of networks being so much better, the latency being so much lower, is, you know, it's time to launch some of these kind of apps and services, which are very useful for people. We have covered almost all of the Indian languages in this app, and it's real-time conversation-like feeling. So I'd encourage you to go and try this app as well on the Geo5G network. Moving on to the air fiber and our home offering, we are continuing to push the air fiber offering. It is now available across the country, pan India, and we're seeing demand coming pan India from not only from the metro and tier one cities, but tier two and tier three cities as well, smaller towns. We are seeing demand coming pretty much from all across the country, and we are being able to service that demand now with our network available across the country. The run rate of connecting new homes has been picking up. And this quarter, we have had the highest ever quarterly home connects at over 1.1 million. And as we keep deploying across the country, we expect to be able to connect many more homes in the quarters to come. The ability, I spoke about standalone 5G network, the ability to do things on that standalone network like network slicing or also deploy point-to-multipoint offerings is helping us give very high throughput and fiber-like experience on our air fiber service. And in fact, in terms of data consumption, time utilization, etc., The air fiber homes are currently keeping pace. In fact, most of them are consuming more data than the FTTH homes. And the uptake has been very, very encouraging. There is clear service differentiation and innovative distribution, which is helping us increase demand for the service. Moving on to the enterprise business, where also we have been making inroads in key verticals as per our strategic direction. This is something we've been speaking to you about the last few quarters. We are now successfully displacing competition. Wherever we are getting an opportunity, as you would appreciate, enterprise deals tend to be longer tenor. So we have to wait for the opportunity where these come up for renewal and then make our entry, and we've been able to do that. We have expanded our wallet share beyond connectivity. So once again, for us, enterprise offering is a combination of connectivity, but value added services. And we have spoken about these value added services with you in the past, which is what we take to the market. And this would include cloud, chatbot, CFAS, and several vertical solutions that we offer to our clients. So we've been expanding wallet share across connectivity into these other services that we're offering. We're building partner ecosystems as well to tap into opportunities, especially in some of the specialized sectors where getting access through partner ecosystem is easier and faster. Another service or offering which is gaining traction is IoT. And here again, it's a combination of connectivity device and the software element, the platform itself that we offer to our clients. and we're seeing good uptake in these services as well. There have been cohort-specific propositions, and in the past we've spoken with you about some of these, like those for the hospitality segment. So we are seeing good traction in education, manufacturing, and hospitality. BFSI continues to be very strong for us. And in BFSI, therefore, we are now leveraging on the relationships to offer more services and also tie up with some of our BFSI clients to do more beyond just providing them connectivity and some enterprise offerings. So all in all, we're seeing good traction in the enterprise segment, which is building up quite well for us. A couple of updates now which happened during the quarter or towards the end of the quarter. One was the tariff increase. You're already familiar with this. This was announced and made effective from the 3rd of July. So not in the previous quarter. The impact will only be seen starting this quarter. The tariff increase, you know, across the industry was in the 13% to 25% range. But what we've done is for the geo... Bharat and the Duo phone, which are the entry-level devices, which really are focused towards our aim of 2G MOOC Bharat and really transitioning all of the subscribers onto digital services and digital platforms, which is an aim that we have got. For them, there has been no change in tariff. In addition, for the 5G experience that we are currently offering is still available at no additional cost to subscribers who have subscribed to certain plans. And this is to encourage 5G consumption on the network and people to adopt more and more of 5G services. So we expect, you know, as was on expected lines, a post-tariff increase. The other operators have also raised tariffs. Overall, the industry tariff levels have gone up. There may be some transient impact, but we think in the longer term, this is going to be good for the overall telecom industry and help build a premier digital society and strengthen the overall sector. The other development in the previous quarter was the spectrum auction which happened. As we have told you in the past, we have a very good spectrum bank with us which fulfills the requirements across all of the services that we are offering, LTE, 5G, whatever we're doing at home and using some of that spectrum. So we didn't really – we were very focused in acquiring more spectrum, right-to-use spectrum. Only in places where we had seen demand go up, the data consumption going up, and therefore in order to ensure that the customer service never suffered, we added more spectrum in Bihar and West Bengal in the 1800 megahertz band at a total cost of 974 crores. So we were very focused in looking at spectrum, which we really needed to just ensure that our customers always get the best offering. Otherwise, we have a fairly good spectrum bank to offer all of the services that we are doing. Our spectrum footprint across bands is now at 26,801 megahertz. This is combining across all of the circles in the country and uplink and downlink together. You would know already, I'm just reiterating that we are the only operator who is running 5G across low band, mid band, and high band, 700, 3300, and 26 gigahertz, which gives us unique advantages like career aggregation and standalone network. Moving on to the operating and financial matrices, key operating metrics for RJIL, our connectivity business, we ended the quarter at 489.7 million subscribers. That's an addition of 8 million for the quarter. ARPU came in at 181.7, almost similar to the last quarter for reasons that I already spoke about. The 5G consumption uptick, has driven data consumption to 30.3 GB per user per month. That's more than a GB per user per day. You know, something that we used to speak about when we had just about started that consumers should be consuming more than a GB of data per day. And the voice traffic also continues to be healthy. So all of the business KPIs or the operating KPIs are going healthy. Moving on to the RJIL financials, this is just for the connectivity business. The operating revenues increased to 26,478 crores. That was a 10.1% year-on-year increase. And the EBITDA went up to 14,022 crores at an EBITDA margin of 53%. So the margins have kept on steadily improving and fairly consistent performance on this front. Moving on to the consolidated financials for Jio Platforms Limited, the operating revenues for the quarter came in at 29,449 crores. That was a 12.8% year-on-year growth. The EBITDA was at 14,638 crores, and the EBITDA margin was 49.7%. Profit after tax increased to 5,693 crores, again around 11.7% year-on-year increase. So fairly steady across all of the key financial matrices as well. With that, I will hand over to Dinesh to take you through the results of the retail business. Thank you, everyone, and have a good evening.