RIL becomes first Indian company to cross Rs 1 lakh crore pre-tax profit

New Delhi: Mukesh Ambani-led conglomerate Reliance Industries Limited (RIL) on Monday said its consolidated profit before tax jumped by 11.4 per cent year-on-year to Rs 1.04 lakh crore ($12.6 billion) for the financial year ended March 2024, becoming the first Indian company to cross the lakh-crore-rupees profit threshold.

The company’s gross revenue during the financial year 2023-24 increased by 2.6 per cent to Rs 10 lakh crore ($119.9 billion) supported by robust expansion in consumer and upstream businesses.

“I am happy to share that this year, Reliance became the first Indian company to cross the Rs 100,000-crore threshold in pre-tax profits,” RIL Chairman and Managing Director Mukesh Ambani said in a statement.

RIL posted record annual profit numbers despite a year-on-year decline in fourth quarter profit. The company’s net consolidated profit for January-March 2024 quarter stood at Rs 18,951 crore against Rs 19,299 crore recorded in the corresponding period of the previous year, a decline of 1.8 per cent. Analysts had predicted 5-10 per cent contraction in Q4 profit.

Oil-to-telecom conglomerate reported a consolidated net profit (profit after tax) of Rs 79,020 crore for the financial year 2023-24, which is 7.3 per cent higher when compared with the previous year.

The company’s tax expenses increased by 26.2 per cent year-on-year to Rs 25,707 crore in 2023-24 on account of utilisation of tax credits in the previous financial year, data released by RIL showed.

Capital expenditure for the year ended March 31, 2024, stood at Rs 131,769 crore with investments in pan-India 5G roll-out, expansion of retail infrastructure and new energy business.” This excludes the amount incurred towards spectrum and is adjusted for capital advances and regrouping of assets,” RIL said.

“Performance of the digital services segment has been boosted by accelerated expansion of subscriber base, supported by both mobility and fixed wireless services,” Ambani said.

As per the company’s statement, Jio has rolled out its 5G network across India. Over 108 million 4G subscribers have migrated to Jio’s 5G network. It further claimed that the Jio 5G network now carries around 28 per cent of Jio’s wireless data traffic.

Net profit of Reliance Jio Infocomm, the telecom arm of RIL, increased by 13 per cent to Rs 5,337 crore in Q4. The company’s revenue increased by 11 per cent to Rs 25,959 crore during the quarter under review.

RIL’s board on Monday approved a dividend of Rs 10 per share for the financial year ended March 2024.

Share price of RIL closed 0.65 per cent higher at Rs 2960.60 at the BSE on Monday. The stock has rallied by 14.32 per cent in the 2024 calendar year so far. The financial results were announced after the closing of the market trading on Monday.

Reliance Consumer Products, FMCG arm of RIL, recorded a sales of over Rs 3,000 crore in 2023-24, the company’s first full year of operation. Campa Cola contributed around Rs 400 crore to this revenue.

“Acquisitions and partnerships continue to be a core part of our strategy for our consumer brands business,” said Dinesh Taluja, chief financial officer of Reliance Retail.

Reliance Retail’s net profit increased by 11.7 per cent to Rs 2,698 crore in the quarter ended March 2024, led by strong growth in consumer electronics and fashion & lifestyle businesses.