Reliance Industries Limited (RIL) saw a 9.4 percent increase in net profit in the fiscal second quarter, reaching Rs 16,563 crore. Despite a slight decrease in revenue from operations, Chairman and Managing Director Mukesh D. Ambani expressed satisfaction in the company’s performance, citing growth in Digital Services and the Upstream business. The O2C business, however, experienced a weaker contribution due to unfavorable global demand-supply dynamics.
The growth in Digital Services was primarily driven by an increase in Average monthly revenue per user (ARPU), with Jio’s monthly ARPU rising by 7.4 percent year-on-year. The recent hike in tariff charges played a significant role in this increase. The full impact of the telecom tariff hike is expected to be seen in the next 2 to 3 quarters. Jio Platforms, which encompasses all digital services businesses, reported a profit of Rs 6,536 crore in the second quarter.
Jio has made significant strides in the 5G space, with 148 million subscribers upgrading to the faster service. This segment now contributes 34 percent of wireless data traffic for Reliance Jio. Moreover, with the launch of JioAirFiber offerings, the home broadband segment is experiencing accelerated growth. The company’s digital services are focused on providing innovative deep-tech solutions on a national scale, with the goal of delivering the benefits of Artificial Intelligence to every Indian.
Reliance Retail Ventures also saw positive results in the second quarter, with a profit after tax of Rs 2,935 crore, marking a nearly 20 percent increase from the previous quarter. Revenue from operations also rose, reaching Rs 66,502 crore. Mukesh Ambani highlighted the retail segment’s ability to expand consumer touchpoints and product offerings across both physical and digital channels. The omni-channel retail model enables the business to cater to a diverse customer base effectively.
Overall, Reliance Industries Limited’s diversified business portfolio demonstrated resilience in the face of challenges in the O2C business. With strong growth in Digital Services and the Upstream business, the company is well-positioned for continued success. The focus on innovation and expansion in key areas such as 5G and AI reaffirms RIL’s commitment to driving digital empowerment across India. With promising results in both the digital services and retail segments, Reliance Industries is poised to maintain its growth momentum in the upcoming quarters.
