Reliance Industries Sees Profit Rise in Second Quarter
Reliance Industries Limited (RIL) reported a net profit of Rs 16,563 crore for the fiscal second quarter, marking a 9.4% increase from the previous quarter. The company’s revenue from operations was Rs 2.35 lakh crore for the quarter ending September 30. Mukesh D. Ambani, Chairman and Managing Director of RIL, highlighted the strong performance in Digital Services and Upstream business, which helped offset weaker results in the O2C business due to global demand-supply challenges.
Growth in Digital Services
RIL’s Digital Services saw significant growth, driven by a 7.4% year-on-year increase in Jio’s Average Revenue Per User (ARPU) following a tariff hike. Jio Platforms, encompassing all digital services, reported a profit of Rs 6,536 crore in Q2FY25. Jio has also expanded its 5G leadership, with 148 million subscribers upgrading to the faster service, contributing 34% of Reliance Jio’s wireless data traffic. The JioAirFiber offerings have accelerated growth in the home broadband segment.
Retail Segment Performance
Reliance Retail Ventures reported a profit after tax of Rs 2,935 crore for Q2 FY25, a nearly 20% increase from the previous quarter. Revenue from operations rose to Rs 66,502 crore. The retail segment continues to expand its consumer touchpoints and product offerings through both physical and digital channels, supported by a unique omni-channel retail model.
Doubts Revealed
Reliance Industries Limited (RIL) -: Reliance Industries Limited, or RIL, is one of India’s largest companies. It operates in various sectors like energy, petrochemicals, textiles, natural resources, retail, and telecommunications.
Net profit -: Net profit is the amount of money a company earns after subtracting all its expenses, taxes, and costs from its total revenue. It’s like the company’s earnings after paying all its bills.
Fiscal second quarter -: The fiscal second quarter refers to the second three-month period of a company’s financial year. Companies often have different financial years than the calendar year.
Rs 16,563 crore -: Rs 16,563 crore is a way to express a large amount of money in Indian currency, where ‘Rs’ stands for Indian Rupees and ‘crore’ means ten million. So, Rs 16,563 crore is 165,630 million rupees.
Digital Services -: Digital Services refer to services provided over the internet or through digital platforms, like mobile networks, online streaming, and cloud services. In this context, it includes services provided by Jio, a part of Reliance.
Jio’s ARPU -: ARPU stands for Average Revenue Per User. It is a measure of how much money a company makes from each customer on average. Jio’s ARPU rising means they are earning more from each user.
5G -: 5G is the fifth generation of mobile network technology. It offers faster internet speeds and more reliable connections than previous generations like 4G.
Omni-channel offerings -: Omni-channel offerings mean providing customers with a seamless shopping experience across different platforms, like online, in-store, and through mobile apps. It allows customers to shop in various ways.
