Reliance Industries Limited

Good evening and a very happy new year to all of you. I'm very happy to welcome you to the third quarter of financial year 2025 business presentation from Reliance Industries Limited. As always, we have Srikanth walking you through the consolidated numbers first. Then we will have Kiran talk about Jio. We will have Anshuman talk about Jio numbers. Then we will have Dinesh Dalluja talk about retail and Sanjay Rai talking about our EMP performance, then Srikant will come back and then summarize. But before summarizing, we'll also talk about our O2C performance. Thank you, Srikant, and over to you.

Thank you, Srini, and happy new year to all of you. We had a good operating quarter with strong performance in each of our segments. Revenue growth, EBITDA growth at close to 8% and a PAT growth of close to 12%. And specifically, the consumer businesses did well and so did O2C. We had strong sequential performance. In fact, if you were to look at EBITDA on an aggregate basis, sequentially up 9%. Retail was up 17% sequentially, O2C was up 16% sequentially. So strong improvement there. And in each of the businesses, retail, and we'll go through the slides, but it's on the back of a strong festive season. and good traction with our customers. On Jio, the story is about higher ARPU and the fact that we are adding consumers, especially in FTTH. OTC year on year has been steady, backed by feedstock optimization and strong domestic demand, and upstream has been a steady performance. Just one slide summary of the performance. As you can see, revenue in EBITDA almost 19% higher on a year-on-year basis, led by the benefit of Tarifike. As you can see, R2 at 203 rupees, which is up 12%, and also us adding almost 3.3 million subscribers during the quarter, of which two have been for home. So there has been this whole... point about return of customers in a post-transient from the same consolidation concern point of view data traffic very strong 22 percent higher at about 46.5 exabytes of data and also that 5g customer base is now 170 million On retail side, revenue EBITDA and PAT between 9% and 10%. And as I mentioned, very strong sequential performance with revenues up actually on a sequential basis, 18% and EBITDA at about 17%. And we obviously benefited from an exceptionally strong festive season demand. And as you may recall, we have been talking about significant efforts over the past few quarters in terms of streamlining our operations and the benefit out of that and the productivity gains that have come out. Especially when you look at grocery, if you look at B2C, that's a 37% growth there. and also benefiting from very strong traction in our consumer brands. In fashion and lifestyle, we saw a very strong rebound with some of our new formats delivering the highest ever sales. Digital benefited again from the festive and wedding season. And EBITDA margin continued to expand at 8.6%. It's up 20 basis points on a year-on-year basis. This time we started express deliveries pilot in about 4,000 pin codes and continuing footprint expansion, 779 stores overall that we saw. In OTC segment, EBITDA growth about 2.4% year-on-year, but 16% on a quarter-on-quarter basis. On a year-on-year basis, I would say it's a steady performance with a lot more focus on favorable feedstock sourcing. It has also benefited from higher volumes. It's up almost 9%. You may recall that last time, There were large plant shutdowns in the same period last year, and that rebound in volumes we saw. Importantly, this time has also been a big push towards domestic fuel retailing. And if you see the volumes, volumes have been up 44 percent for gasoline and 23 percent for diesel. The good news also has been the fact that domestic demand has been strong. Oil at almost close to 6%, demand growth, polymer 11% and polyester 12%. So in a way, the mixed trends that we saw in as far as the margin environment was concerned, based on global factors, did get compensated by the push in the domestic side as well as the higher volumes that we had. Oil and gas, steady quarter, revenue slightly lower because of volumes from KGD6 being there. But there was a bit of, in terms of the price, it was slightly higher at about 0.8% higher at $9.74 a million BTU. Overall production, you know, still the field produces 38.04 mm CMD. Taking these numbers together, overall, you can see that EBITDA up 8% on a year-on-year basis and almost flowing through from into a pat at 12%. So benefit of each of the individual businesses doing well, you see that. This is just the bridge. Pictorially, it tells you that on a year-on-year basis, the big contribution coming from digital services, which is up 2,400 crores, so did retail, adding 600 crores to the overall EBITDA. And Dinesh will cover through some of the other operating metrics in terms of falls and number of transactions. Quarter on quarter, big jump coming from OTC here. It is on the back of higher refining margins as well as improved PP and PVC deltas that we saw. Otherwise, even on OTC, marginal improvement in KGT6 gas price realization benefited it. Retail benefited from the festive demand that I talked about and digital on the back of both ARPU increase as well as continuing migration to 5G as well as the GOR fiber connect that we saw. Flat in terms of net debt, you can see that, you know, probably the same as what it was in September and just the same as what it was even in March. So continuing strength of the balance sheet and our capex for the quarter was around 32,000 crores, well below the cash profits of 38,000 that, you know, this quarter, you know, we have delivered. With this, I'm going to hand it over to Kiran.

Thank you. Thank you, Shekhar. So we want to start today with an update on the progression of our true 5G services. If you look at the chart on the right, you can see that it has been a story of steady growth. We already had the Pan-India network up and running for the past many quarters. And now, thanks to the natural upgradation of devices happening in the market, where a lot of the new handsets have 5G capability, and as soon as a customer acquires a 5G device, they automatically are able to enjoy all of the 5G services available through Geo2 5G. So the combination of having that Pan-India network available and the increasing adoption of 5G devices in our subscriber base has resulted in the number of Geo 5G subscribers crossing 170 million as on December of 24. Bonobar 5G now accounts for a large chunk of the traffic on our network, nearly 40% of the wireless traffic of an overall traffic of about 15 exabytes is being contributed by 5G, and this story will continue to unfold into the future. And more interestingly, thanks to the fact that we have this superlative true 5G network, which is a big differentiator vis-a-vis other competitors, also means that any new 5G device that is sold in the market, 70% of them end up becoming a Jio customer and using Jio services. So literally, I think we are at the cusp where probably in a very short period of time, we'll be able to say that in probably one of the fastest 5G rollouts, not only 5G rollouts, but 5G adoption anywhere in the world, the total 5G traffic on our network will surpass the 4G traffic very, very shortly. Now, it is not just in the consumer side. We have also been briefing all of you over the last few quarters about through 5G, also powering something called geo air fiber. So if you look at the pie chart on the left, what is heartening is that the availability of air fiber has really opened up demand, unlocked demand or tent of demand from beyond what we call the top thousand cities and towns of India. And what we are seeing is that, as you know, nearly 70% of the population of the country is outside of what we call the cities or the urban areas. markets and now we are really starting to see that even our addition with respect to air fiber connections are starting to reflect that mix and more than 70 percent of the new connections are now starting to come from beyond the top thousand towns and cities we also had more than two million connects in a single quarter in the third quarter of fi25 which has really driven the total connected premises to nearly 17 million. And just keeping in mind that this space is accelerating now as the rollout itself is kind of becoming almost a well-oiled machine and with new demand getting unlocked from all across the country. and not just the urban centers, I think the pace of connections will pick up into the future. And we see that this entire greenfield opportunity of connecting 100 million plus homes across India is now getting that additional momentum, thanks to AirFiber. And this is an area where we have a significant first mover advantage, where essentially we are going after either two unconnected or underserved markets with this offer. The enterprise business is also... Picking up momentum, if you look at year-on-year growth, there is a nearly three times or 280% year-on-year increase in all the large government tenders which have come out. And of course, if you look at both the national and state government connectivity infrastructure, we are continuing to increase our share in that segment. Another big segment which is modernizing is all the banks. And if you look at The recent past, again, we've been consistently winning a lot of the connectivity tenders coming from cooperative banks. And we believe that there's a potential to get up to 150,000 bank branches across the country that we are well positioned to connect eventually. And of course, large corporates across, as some of their traditional contracts are rolling off, we are getting selected as almost mere exclusive service provider because most enterprises who have multiple locations and pan-India premise presence, they are looking to have a single solution provider and Jio is well positioned to be that exclusive service provider on a pan-India basis. And wherever we have such demand coming in, we are seeing that we are the provider of choice there. In addition to connectivity, again, we are providing a true developer-friendly platform as a service for connectivity. We call connectivity and communication platform as a service. The brand name is GeoCX. And in addition to that, of course, the IoT adoption, again, which requires pan-India connectivity. And of course, in the government sector, through a few of the initiatives and wins that we have had also getting into private and hybrid cloud as a managed service. So across the board, I think connectivity is obviously getting strengthened, but we are also now starting to see traction for services beyond connectivity. And also talking about communication, we launched recently the SIP business and we are seeing a 50% growth in the install base in the first quarter itself post-launch. If you look at what is now, I just want to talk about a few themes that we are pursuing into the future. So certainly we are living in the age of AI, dramatic transformations starting to happen across industries, across functions, even across various use cases. And to enable all of that to happen and making sure that India is emerging as one of the preeminent AI nations anywhere in the world, again, we see ourselves having to pursue a few missions to support that ambition. And the first one is, of course, setting up a national, truly national AI infrastructure, really looking at creating AI-ready infrastructure, hard infrastructure, and compute capabilities, not just in the few megawatts or even hundreds of megawatts, but really extending into the gigawatt scale because we believe that this transformation will be across the board and we need to be ready to ramp up and support emergence of AI driven use cases in the country and not just creating the scale but also ensuring that we are able to deliver through various innovative partnerships and of course innovative initiatives internally to deliver one of the lowest cost inference capabilities when it comes to AI anywhere in the world and this is a similar mission as compared to what we were able to do in front of that so very excited by that Internally, I think we are seeing already multiple use cases where we are starting to weave that AI story across our operating companies in the Reliance Group. And of course, on the back of whatever we are doing here, eventually we will be then looking to offer this as a platform even for other enterprises in India. And if you're looking at what other offerings beyond a platform play, what other offerings we are looking to take to market, Across the board, all of the consumer and small businesses and enterprise offerings that we're already providing in the market, all of them will see a lift thanks to the adoption of AI within all of those applications as well through multiple use cases. Looking at some of the AI-related, not just AI, but across the board, comprehensive suite of offerings that we unveiled in the India Mobile Congress 2024, which happened over the last quarter. I think building on the AI theme, a platform called GeoBrain, which is really the plumbing on top of which we are able to rapidly spin up all of these AI use cases that I spoke about. That was unveiled and showcased. We made an announcement and now it is available through a beta offering called AI Cloud, which is again an offering for the consumer. So that was also announced and showcased. And now taking compute into the homes, which has always been an underserved market again, partly because homes are not connected, but partly also because of the high cost of having personal computers in the home. So now we showcased a solution called GeoCloud PC, which is effectively, and I'll talk about that in a slide shortly. But effectively, a very low cost and pay as you go capability of having a personal computer. Evergreen personal computer never needed to be upgraded. Always the latest specs and pay as you go. You only pay for the time for which you are using that PC. Again, services for education. Again, using AI to power various, I would say, personalized education use cases. AI for skill development. Again, how do you train beyond primary education? But once you get into the workforce, how do you use AI to continuously stay updated? Some use cases around how can farmers and other people involved in the agricultural sector use AI? And then, of course, many vertical-focused solutions, especially when it comes to hospitality, retail, nursing, and so on. And of course, unveiling a new benchmark when it comes to providing gigabit speed connectivity to every SMB. So a combination of services, but an increasing contribution being made by AI across all of these services. Some of them are already in the market, and some of them we will be announcing the offerings being made available in the market very shortly. Now coming to the AI cloud offering that I spoke about, this is really a combination of putting connectivity, putting cloud storage and AI into one package and making it available to Indian customers. Connectivity is a given. I think I mentioned both in the hand and in the home, that connectivity story is really unlocking new demand. But at the same time, the existing constraint of having sufficient cloud compute available to customers, we made an announcement of providing 100 GB free of cost. I think the earlier benchmark was either 5 GB or 15 GB, depending on whether you were an Apple customer or Google customer through Android. But we can embrace the bar multifold by providing 100 GB free of cost to all Jio customers. All of the features that one would expect to store, to share, to sync, secure, even stream various kind of media assets all from the same app without having to use any other applications. unlocking the content that you have onto the big screen through integration with our set-top box, trying to bring in additional content very easily, like an integration with things like DigiLocker, where if you have even government-authenticated content and documents, very easy to integrate between your AI cloud and that. And then already a set of AI-powered use cases where we are able to curate your content, make it available as memories on a daily basis as appropriate to significant dates or other events or other occasions, ability to group individuals through face detection, multiple magic tools to convert your photographs into avatars and also edit those photographs by removing background, adding other assets into those content. All of that today already made available and we've just launched this as a beta offering in the market and in the coming quarter we will look to scale this up to every Jio customer. geo cloud pc that i mentioned earlier so really this is again a new frontier of adding adding to the to the lineup of digital services that we are taking to indian homes the key idea being that we already have a pretty capable set of box in the home so effectively we are converting that set of box and your tv into a pc because the actual compute we are able to run in the cloud And then all you need is a keyboard and a mouse and effectively your set-top box and your TV in combination with the cloud PC doubles up as a PC available to you on demand. And really, I think the key power that we are looking to provide to the home is to enable multiple work and learn and create use cases. So certainly students today, not just for their classwork, but to develop skills like coding or Media creation, et cetera, beyond what they're learning in their classroom, certainly would require compute of some kind. And this, we believe, is going to be that. Gig workers who are working from home, et cetera, again, they are creators of content. And sometimes the phone or the tablet is not the best form factor for productive work. And again, this could unlock many such use cases. And again, we are providing 100 GB of storage with every cloud PC. And as a basic capability, an 8 GB storage. multi-core processor is already available through the cloud to get you started. And again, like I said, it is always updated, both in terms of hardware and software, because all of that is in the cloud. You don't have to really think about buying or upgrading that on your own. And there's no lock-in. There is no maintenance or anything. It's always available to you, and you only pay for what you use. So some updates that I had, and I'll just hand it over to Rao and Chiman to talk about both the operational and financial numbers for the quarter.