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Financial Results Presentation – FY 2023-24 /

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Financial Results Presentation – FY 2023-24 / 4Q FY24 22 April 2024 1
Forward Looking Statement 2 This presentation contains forward-looking statements which may be identified by their use of words like “plans,” “expects,” “will,” “anticipates,” “believes,” “intends,” “projects,” “estimates” or other words of similar meaning. All statements that address expectations or projections about the future, including, but not limited to, statements about the strategy for growth, product development, market position, expenditures, and financial results, are forward-looking statements. Forward-looking statements are based on certain assumptions and expectations of future events. The companies referred to in this presentation cannot guarantee that these assumptions and expectations are accurate or will be realized. The actual results, performance or achievements, could thus differ materially from those projected in any such forward-looking statements. These companies assume no responsibility to publicly amend, modify or revise any forward looking statements, on the basis of any subsequent developments, information or events, or otherwise.
3 Consolidated Financial Results FY 2023-24
FY 2023-24 – A Year of Milestones Strong foundation for creating further value in coming years RIL Consolidated EBITDA crosses ₹175,000 crore mark RIL Consolidated PBT crosses ₹100,000 crore mark RIL Market Cap crosses ₹20,00,000 crore mark JPL Revenue crosses ₹100,000 crore mark JPL Net Profit crosses ₹20,000 crore mark Digital Services Completion of world’s fastest 5G rollout RRVL Revenue crosses ₹300,000 crore mark RRVL Net Profit crosses ₹10,000 crore mark Retail Store footprint crosses 75 mn sq.ft. mark 4 1. RIL is the first Indian company to cross these milestones 2. Net Profits of JPL and RRVL rank them among India’s Top 20 and 30 companies respectively
FY 2023-24 – Consolidated Highlights High quality assets and business model delivering record performance – EBITDA up ~2x in 5 years 5 1. Consolidated EBITDA at ₹ 178,677 crore (US$ 21.4 billion), up 16.1% YoY ✓ Net profit at ₹ 79,020 crore (US$ 9.5 billion), up 7.3% YoY 2. Consumer businesses EBITDA at ₹ 79,779 crore (US$ 9.6 billion), up 16.9% YoY, 5-year CAGR at ~30% ✓ Strong growth in Retail on larger physical-digital footprint, 36% increase in footfalls ✓ Digital Services growth led by industry-leading customer engagement, 5G adoption and FTTH penetration 3. Resilient O2C performance aided by operational flexibility in a challenging margin environment ✓ Feedstock optimization, ethane cracking and higher domestic placement 4. Oil & Gas growth led by higher volumes with the ramp-up in KG D6 gas and condensate production 5. Robust balance sheet with reducing net debt; declining trend in capex
FY 2023-24 – Key Segment Highlights (1/2) 6 1. Revenue growth across segments; EBITDA margin improved 60 bps to 8.4% 2. Store footfalls at 1,063 Mn (+36.3% YoY); Registered customer base crosses 300 Mn 3. Net addition of 796 new stores 4. Own F&L brands driving growth; 3 brands have crossed ₹ 2,000 crore of annual sales 1. EBITDA margin at 50.2%, up 50 bps driven by higher customer base and operating leverage 2. Industry leading net subscriber addition of 42.4 Mn 3. Data traffic up 31% YoY at 148.5 Bn GB – network scale up and increasing 5G adoption 4. Over 108 Mn subscribers transitioned to Jio True5G 5. Jio AirFiber being rolled out across 5,900 towns Retail (RRVL) Leading position driven by impactful scale and superior value offering Digital Services (JPL) US$ Mn ₹ crore % YoY Revenue 36,783 306,786 17.8% EBITDA 2,762 23,040 28.5% No. of Stores 18,836 4.4% Area Operated (Mn. Sq.ft.) 79.1 20.6% US$ Mn ₹ crore % YoY Revenue 15,409 128,521 11.7% EBITDA 6,589 54,959 12.8% ARPU (₹ ) 181.7 1.6% Subscribers (Mn) 481.8 9.7%
FY 2023-24 – Key Segment Highlights (2/2) 7 1. Globally weak margin environment ✓ 20-45% fall in fuel cracks from elevated levels, offset by lower SAED ✓ Multi-decade low downstream chemical deltas on supply overhang 2. Operational flexibility delivering stable EBITDA ✓ Optimized feedstock sourcing ✓ Advantageous ethane vs. naphtha cracking ✓ Robust domestic demand environment 1. Strong EBITDA growth led by sharp volume growth of gas and condensate ✓ Partly offset by 5% decrease in KG D6 gas price realization 2. KG D6 average production ✓ Gas - 27.1 MMSCMD vs. 19.3 MMSCMD ✓ Oil/Condensate – 18,302 bbl / day Volume growth driving upstream earnings; Maximizing benefit of O2C integration and flexibility O2C Oil & Gas US$ Mn ₹ crore % YoY Revenue 67,712 564,749 -5.0% EBITDA 7,481 62,393 0.5% Prod. meantfor Sale(MMT) 67.8 2.1% US$ Mn ₹ crore % YoY Revenue 2,930 24,439 48.0% EBITDA 2,421 20,191 48.6% KG D6 Production (BCFe) 260.3 56.8%
Consolidated Financial Results : FY 2023-24 Multiple levers and India growth driving earnings delivery 8 1. Revenue growth led by continued momentum in consumer businesses ✓ O2C revenues impacted by 13.5% decline in average Brent crude price 2. Solid execution across businesses delivering robust EBITDA growth 3. PBT crossed ₹ 100,000 crore mark, up 11.4% despite higher depreciation and finance cost 4. Net profit growth at 7.3% ✓ YoY comparison impacted due to availing of tax credits last year (in ₹ crore) US$ Mn FY24 FY23 % YoY Revenue 119,912 1,000,122 974,864 2.6% EBITDA 21,423 178,677 153,920 16.1% Finance Cost 2,772 23,118 19,571 18.1% Depreciation 6,095 50,832 40,303 26.1% PBT 12,556 104,727 94,046 11.4% Tax 3,082 25,707 20,376 26.2% Net Profit 9,474 79,020 73,670 7.3% 1. Net Profit growth YoY: ✓ RIL (standalone): ₹ 42,042 crore, down 2.2% ✓ JPL: ₹ 21,423 crore, up 12.0% ✓ RRVL: ₹ 11,101 crore, up 20.9%
EBITDA Contribution (FY24 vs FY23) Unique business model delivering all-round growth 9 1. O2C – Optimized feedstock sourcing and strong domestic markets providing resilience 2. Oil & Gas – Sharp 56.8% growth in volume helped deliver 48.6% increase in EBITDA 3. Retail – broad-based revenue growth across categories and margin expansion led to 28.4% increase in EBITDA 4. Digital Services – State-of-the-art network enabled strong subscriber growth, operating leverage driving profitability 5. Others largely reflect increased contribution from other businesses, higher treasury income and reduction in unallocable expenses Note: Based on Consolidated segment EBITDA 153,920 318 6,602 5,108 6,411 6,318 178,677 FY23 O2C Oil & Gas Retail Digital Services Others FY24 FY24 vs FY23 (₹ crore)
10 Consolidated Financial Results 4Q FY24
Consolidated Financial Results : 4Q FY24 Strong EBITDA growth through a portfolio of dynamic businesses 11 1. YoY increase in Revenue led by low double-digit growth in consumer and O2C business 2. Continuing momentum in consumer businesses driving strong EBITDA growth ✓ Higher KG D6 volumes boosted upstream EBITDA 3. Net profit marginally up YoY as tax credits availed last year 4. QoQ strong performance ✓ 19% increase in O2C EBITDA post M&I activity ✓ Strong 8.2% growth in Net profit US$ Mn ₹ crore % QoQ % YoY Revenue 31,753 264,834 6.7% 10.8% EBITDA 5,653 47,150 5.5% 14.3% Finance Cost 691 5,761 -0.5% -1.0% Depreciation 1,627 13,569 5.2% 18.5% PBT 3,335 27,820 7.1% 16.0% Tax 789 6,577 3.7% 138.8% Net Profit 2,546 21,243 8.2% 0.1% 1. Net Profit growth YoY: ✓ RIL (standalone): ₹ 11,283 crore, down 18.0% ✓ JPL: ₹ 5,583 crore, up 12.0% ✓ RRVL: ₹ 2,698 crore, up 11.7%
EBITDA Contribution (4Q FY24 vs 4Q FY23) Significant growth contribution from Upstream and consumer businesses 12 1. O2C – EBITDA at ₹ 16,777 crore, up 3% YoY ✓ Feedstock flexibility and sourcing supported positive performance in tough market environment 2. Oil & Gas – EBITDA at ₹ 5,606 crore, up 47.5% YoY ✓ High growth with ramp-up in MJ field production 3. Retail – EBITDA at ₹ 5,829 crore, up 18.4% YoY ✓ Strong footfalls, store expansion and continuous focus on widening product portfolio 4. Digital Services – EBITDA at ₹ 14,644 crore, up 9.4% YoY ✓ 10% increase in net subscriber addition and 35% increase in data traffic Note: Based on Consolidated segment EBITDA 41,252 484 1,805 904 1,256 1,449 47,150 4Q FY23 O2C Oil & Gas Retail Digital Services Others 4Q FY24 4Q FY24 vs 4Q FY23 (₹ crore)
EBITDA Contribution (4Q FY24 vs 3Q FY24) Robust QoQ EBITDA growth led by O2C 13 1. Higher utilization and improved refining economics supported O2C performance ✓ All units fully operational post M&I turnaround ✓ Weak downstream margins constrained profitability 2. Oil & Gas – Sustained performance with marginal decline in volumes 3. Retail - Store rationalization and seasonality affected performance 4. Digital Services – Robust 10.9 mn net subscriber addition aiding profitability Note: Based on Consolidated segment EBITDA 44,678 2,713 198 442 383 16 47,150 3Q FY24 O2C Oil & Gas Retail Digital Services Others 4Q FY24 4Q FY24 vs 3Q FY24 (₹ crore)
Robust Balance Sheet Cash flows funding capex; robust balance sheet provides unparalleled financial flexibility 1. Decline in Net Debt with moderation in capex post 5G roll-out ✓ Capex for the year at ₹ 131,769 crore and Cash profit at ₹ 141,969 crore 2. Sustained focus on ✓ Maintaining Net Debt to EBITDA at below 1x ✓ Supporting growth initiatives through internal accruals 14 Mar-23 Change US$ Mn ₹ crore ₹ crore ₹ crore Gross Debt 38,921 324,622 313,966 10,656 Cash & cash equi. 24,979 208,341 188,200 20,141 Net Debt 13,942 116,281 125,766 -9,485 Mar-24
Digital Services
Jio’s Differentiated True5G Sees Rapid Adoption Jio has world’s largest 5G subscriber base, outside China 16 ~108 million subscribers migrated to 5G 5G network now accounts for ~28% of mobility data traffic Global State of 5G India amongst few countries with full 5G rollout Superior customer experience Ookla rates Jio 5G the best network in terms of availability, latency and video start time Source: Ookla
Jio Continues To Gain Subscriber Share Jio building up on its market leadership 17 Jio strengthens its market leadership with highest subscriber market share gain in the industry – ~300bps increase since Dec’22 Jio’s gains have been broad based across all circle categories Superior 5G network, premium smartphone partnerships and JioBharat are driving uptake of Jio’s services 37.1 37.6 38.4 39.1 39.7 40.1 32.2 32.4 32.7 32.8 33.0 33.0 21.1 20.7 20.1 19.8 19.3 18.9 9.6 9.3 8.8 8.3 8.0 8.0 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Feb-24 Subscriber Market Share (%) Jio Op A Op B Op C
18 Jio True5G Customer Base Lights Up India
JioAirFiber Is Accelerating Home Connects Unmatched value proposition drives adoption and engagement 19 Jio AirFiber is now available across 5,900 towns in the country AirFiber is seeing healthy demand in Tier2 towns and beyond which has driven highest ever home connects Content bundling is driving strong engagement with per capita monthly usage of ~400 GB Expanding distribution to further accelerate the momentum
Cohort Specific Propositions To Drive SMB Business Customized digital solutions with unparallel connectivity reach 20 Digital campus with managed Wi-Fi and affordable compute services Hospitals College Digital transformation with Hospital Management system (HIMS), in-room Wi-Fi and entertainment Manufacturing Hotels In-room entertainment with Guest Wi- Fi driven by JHES platform and AirFiber Connectivity with cloud-based security and surveillance solutions Jio Products Connectivity Jio Hospitality Entertainment Solution Managed Wi-Fi Cloud Compute IoT Surveillance
Quarterly Highlights Increasing traction on 5G and Homes is a key focus area for FY25 1 2 3 21 Robust financial performance by Jio Platforms Limited ➢ Consolidated Revenue was Rs 109,558 crore, growth of 11.7% YoY in FY24 ➢ Consolidated EBITDA at Rs 54,959 crore, growth of 12.8% YoY in FY24 ➢ In Q4FY24, consolidated Revenue and EBITDA were Rs 28,871 crore and Rs 14,360 crore, respectively Strong subscriber traction with total subscriber base of 481.8 million as of March 2024 ➢ ARPU for the quarter at Rs181.7 Monthly data traffic on Jio network crosses 14 Exabytes ➢ Total traffic was 40.9 Exabytes, up 35.2% YoY driven by increasing traction on 5G and Homes JioAirFiber has seen good demand leading to highest ever quarterly home connects 4
Data Traffic Continues To Grow Substantially Trend to continue with increasing digital adoption 22 2.4x increase in annual data traffic over the past three years 5G rollout and ramp-up of homes connect have driven industry-leading data traffic growth in FY24 Per capita monthly data usage has increased to 28.7 GB vs 13.3 GB three years ago Jio’s network continues to lead in experience – availability, speed and latency 62 91 113 148 FY21 FY22 FY23 FY24 Total Data Traffic (Billion GBs)
RJIL: Key Operating Metrics Sustained improvement in customer engagement ➢ Strong net customer addition of 10.9 million in Q4’FY24 ➢ ARPU at Rs 181.7 in Q4’FY24 ➢ Robust growth in data consumption led by increasing mix of 5G & Home users with per capita usage of 28.7 GB per month ➢ Total data and voice traffic in Q4’FY24 increased 35.2% and 9.7% YoY, respectively Q4’FY24 Q3’FY24 Q4’FY23 Total Customer base (million) 481.8 470.9 439.3 Net Customer addition (million) 10.9 11.2 6.4 ARPU (Rs/ month) 181.7 181.7 178.8 Total Data Consumption (Billion GBs) 40.9 38.1 30.3 Per Capita Data Consumption (GB/ month) 28.7 27.3 23.1 Voice on Network (crore mins per day) 1,583 1,491 1,459 Per Capita Voice Consumption (mins/ month) 1,008 982 1,003 23
RJIL: Q4’FY24 Financials Steady improvement in key financial metrics Operating Revenue (in Rs crore) EBITDA (in Rs crore) ➢ RJIL Operating Revenue growth of 11.0% YoY driven by industry leading subscriber growth ➢ RJIL EBITDA growth of 11.5% YoY led by higher revenues and margin at 52.9% 24 23,394 24,042 24,750 25,368 25,959 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 12,315 12,663 13,059 13,422 13,734 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24
RJIL: FY24 Financials Connectivity platform continues to scale up Operating Revenue (in Rs crore) EBITDA (in Rs crore) ➢ RJIL revenue up 10.3% YoY ➢ EBITDA growth of 12.4% YoY led by higher revenues and ~100bps increase in margins 25 69,888 76,977 90,786 100,119 FY21 FY22 FY23 FY24 31,461 37,857 47,034 52,878 FY21 FY22 FY23 FY24
Jio Platforms Limited: Key Financials Double-digit growth across key financial metrics 26 ➢ FY24 Revenue and EBITDA growth of 11.7% and 12.8% YoY, respectively with EBITDA margins of 50.2%. ➢ Revenue from operations at Rs.28,871 Cr in Q4’FY24; 13.4% YoY growth ➢ EBITDA increased to Rs.14,360 Cr in Q4’FY24 with growth of 12.5% YoY ➢ Profit after Tax increased to Rs.5,583 Cr in Q4 FY24; growth of 12.0% YoY *Gross Revenue is value of Services figures in Rs. crore, unless otherwise stated Particulars JPL Consolidated Q4 FY24 Q3 FY24 Q4 FY23 FY24 FY23 Gross Revenue* 33,835 32,510 29,871 1,28,521 1,15,099 Operating Revenue 28,871 27,697 25,465 1,09,558 98,099 EBITDA 14,360 13,955 12,767 54,959 48,721 EBITDA Margin 49.7% 50.4% 50.1% 50.2% 49.7% D&A 5,811 5,602 5,093 22,103 18,964 EBIT 8,548 8,353 7,674 32,856 29,757 Finance Costs 1,018 1,028 1,014 4,048 4,082 Profit before Tax 7,527 7,323 6,663 28,797 25,670 Profit after tax 5,583 5,445 4,984 21,423 19,124
27 Reliance Retail
28 Performance Highlights Resilient performance delivered at scale 1. Revenue crossed Rs. 3 lakh crore in FY24, a significant milestone in the journey of Reliance Retail 2. Revenue for Q4 FY24 grew 11% YoY, led by Consumer Electronics and Fashion & Lifestyle consumption baskets 3. Reported EBITDA crossed Rs. 23,000 crore in FY24, grew by 29% YoY; EBITDA for Q4 FY24 grew by 19% YoY 4. EBITDA margin from operations at 8.1% for FY24, up 50 bps YoY and 8.3% in Q4 FY24, up 60 bps YoY 5. Serving customers at scale with registered base of 300 mn+, footfalls of > 1 bn and transactions > 1.25 bn 6. Opened 1,840 new stores with gross area addition of 15.6 mn sq. ft. in FY24 and 562 new stores with gross area addition of 7.8 mn sq. ft. in Q4 FY24; total store count of 18,836 with 79.1 mn sq. ft. retail area 7. Equity fund raise of Rs 17,814 crore in FY24, including Rs. 2,500 crore infused by RIL during the quarter
29 Financial Performance Delivering consistent growth in revenue & profit Q4 FY24 Q4 FY23 % Change YoY Parameter FY24 FY23 % Change YoY 76,627 69,267 11% Gross Revenue 306,786 260,364 18% 67,610 61,559 10% Net Revenue 273,079 230,931 18% 5,632 4,769 18% EBITDA from Operations 22,196 17,609 26% 8.3% 7.7% +60 bps EBITDA Margin from Operations (%) 8.1% 7.6% +50 bps 191 145 32% Investment Income 844 319 165% 5,823 4,914 19% Total EBITDA 23,040 17,928 29% 8.6% 8.0% +60 bps Total EBITDA Margin (%) 8.4% 7.8% +60 bps 2,698 2,415 12% Profit After Tax 11,101 9,181 21% In Rs. crore
30 Performance Highlights: Consumer Electronics 1. Stores delivers steady growth led by ABV growth & improved conversions 2. Leveraged “Digital India Sales” event to drive engagement, with 15% YoY sales growth 3. Category specific campaigns such as ‘Digital Chill Fest’ for ACs & ‘Big Screen Fest’ for TVs witnessed robust response, driving customer engagement and offtake 4. resQ expands service network with 24 new centers; serves ~1.2 mn customers 5. Expands merchant base for JMD, up 20% YoY 6. PBG business launches new brand WYZR; introduced a range of coolers with plans to expand to other categories Republic Day Campaign resQ Plans Business delivers another quarter of steady performance
31 Performance Highlights: Fashion & Lifestyle (1/2) 1. Festivals (Sankranti, Holi) & winter wear campaign drive customer engagement 2. New formats: Yousta, Azorte & GAP continue to gain traction 3. Own brands continue to drive growth: 3 brands crossing milestone of Rs 2,000 crore annual sales 4. Developing fast fashion supply chain ecosystem; continuing to accelerate launch of new options Sankranti Campaign Yousta store launch, Vadodara Apparel & Footwear Continued focus on store formats & assortments in line with customer expectations 1. Sustained focus on improving customer experience: Product rating feature, storefront personalization 2. Strengthened portfolio with 30%+ catalogue growth led by new brands 3. ‘All Star Sale’ delivers 36% traffic growth and adds ~300K new customers Ajio B2C
32 Performance Highlights: Fashion & Lifestyle (2/2) 1. Steady growth during the quarter despite steep increase in gold prices 2. Business continues focus on growing diamond category; share up 100 bps YoY 3. Continued focus on strengthening product offering through launches on key occasions – Makar Sankrati, Valentine Day and Women’s Day Jewels Store Launch, Siwan 1. Delivered 20% YoY growth with growing consumer preference for premium brands 2. Ajio Luxe delivers steady performance; options up 44% YoY; 20+ new brands launched during the quarter 3. Hamleys continues to expand its international presence; launched first store in Italy AFEW Store Launch, Trident, Mumbai Premium Brands Jewels Strengthening design capabilities and portfolio to drive growth
33 Performance Highlights: Grocery 1. Grocery delivers steady performance led by Smart & Smart Bazaar 2. ABV growth led by premiumization; trends towards shift in demand for premium products like millets over wheat, liquid detergents over soap bars etc. 3. ‘Full Paisa Vasool Sale’ grows 21% YoY led by HPC, confectionery & snacks 4. With deeper regional presence, regional nuances offering strong growth opportunities. In certain markets, sales during run-up to Holi exceeded Diwali 5. Focus on growing new categories - international food, body mist, serums etc. to cater to changing consumer preferences 6. “Metro Kirana Utsav” drives onboarding of new kiranas; growing HoReCa segment Full Paisa Vasool campaign Holi campaign Continue to drive customer engagement with enhanced offerings
34 Performance Highlights: JioMart 1. Overall AOV grew by 30% YoY; units per order up 37% YoY 2. Seller base up 94% YoY; live selection up 32% YoY 3. ‘Holi Ready’ & ‘Republic Day’ sales events drive customer engagement with growth in sessions and GMV 4. Launched new functionalities to enhance shopping experience: ‘Buy Again’ widget, customer rating for products GMV: Gross Merchandise Value JioMart campaign Enhancing customer experience with improved offerings & platform features
35 Performance Highlights: Consumer Brands 1. Consumer brands business continues to scale-up, growing 3x+ YoY in general trade i. Strong traction on Campa and Independence brands driving growth of beverage and staples categories 2. New product launch: Campa Runner Energy Lemon drink, Necto (aerated beverage), brewed tea under brand Brew House 3. Key Acquisitions / Partnerships: i. Acquired Ravalgaon IP rights including trademarks, recipe etc. relating to sugar boiled confectionery ii. Partnered with Elephant House, Sri Lanka to manufacture & sell beverages under ‘Elephant House’ brand in India; reciprocal rights to sell Campa in Sri Lanka Broadening product offerings to cater to growing customer demand Necto Campa Runner Energy Brew Tea New Product Launches
Oil & Gas
Oil and Gas Operating Performance – FY24 Record EBITDA; flawless execution to deliver enhanced energy security for India US$ Mn FY24 FY23 % YoY Revenue 2,930 24,439 16,508 1.5x EBITDA 2,421 20,191 13,589 1.5x EBITDA Margin (%) 82.6% 82.3% +30 bps Production (RIL share in BCFe) KG D6 260.3 166.0 56.8% CBM 8.3 9.3 -10.8% Price Realisation KG D6 (GCV - $/MMBTU) 10.10 10.60 -4.7% CBM (GCV - $/MMBTU) 14.43 21.63 -33.3% Condensate ($/barrel) 81.17 - - ₹ crore 37 1. KG D6 – Field performance as per expectations ✓ Production stable across 3 fields ✓ Average gas production at 27.1 MMSCMD ✓ 100% Uptime, Zero safety incident 2. Significant improvement in Revenue and EBITDA ✓ Increased production offset lower gas prices ✓ Domestic production at 11-year high
Oil and Gas Operating Performance – 4Q FY24 EBITDA growth led by increase in gas production and incremental contribution from Condensate US$ Mn ₹ crore % QoQ % YoY Revenue 775 6,468 -3.7% 42.0% EBITDA 672 5,606 -3.4% 47.5% EBITDA Margin (%) 86.7% +30 bps +330 bps Production (RIL share in BCFe) KG D6 71.4 -1.2% 66.4% CBM 2.1 6.1% -4.5% Price Realisation KG D6 (GCV - $/MMBTU) 9.53 -1.3% -16.3% CBM (GCV - $/MMBTU) 14.34 -7.8% -26.7% Condensate($/barrel) 81.20 0.2% - 38 1. Robust Y-o-Y EBITDA growth led by 66.4% higher production from KG D6 block 2. Average gas production for the quarter ✓ KGD6 at 29.7 MMSCMD ✓ CBM at ~ 0.64 MMSCMD 3. KG D6 - Development Plan for incremental production approved by Government 4. Successfully contracted 0.9 MMSCMD of CBM fro Shahdol at 12.67% of Brent + $0.78 for 2 years
KG D6 – Fueling India’s Energy Transition 39 KG- D6 - contributing ~30% of India’s domestic gas production 6.5 17.4 19.3 27.1 0 5 10 15 20 25 30 FY21 FY22 FY23 FY24 Average Gas Production (MMSCMD) ➢ Domestic gas production at multi-year high of 99 MMSCMD with increased KG D6 production ▪ ~90% of incremental domestic production from KGD6
1. Global gas prices trended lower with milder winter in NE Asia / Europe ✓ Healthy EU storages at ~58.7% vs. 5 years avg. of 42.2% ✓ JKM briefly touched a low of ~US$ 8.0/ MMBtu and recovered subsequently (currently at ~US$ 10.5/ MMBtu) 2. Prices supported by revival of price sensitive demand from China, India & SE Asia and backfilling demand 3. Near term demand is likely to be supported by: ✓ Strong Brent prices and demand from Asia ✓ Uncertainty of Russian pipeline supplies through Ukraine (contract expiry in Sep’24) 4. No LNG capacity addition is expected till onset of winter 2024 Global Gas / LNG Markets 0 5 10 15 20 25 Historical Prices ($/mmbtu) JKM NBP TTF HH Strong Brent prices and demand from India, China and SE Asia to support global gas market $/ MMBtu JKM NBP TTF HH Apr’23 - Mar’24 Avg 12.26 10.82 11.09 2.51 40
India Gas Market Scenario Strong growth visibility for India gas market 1. Indian demand rose to an all time high during FY24 with lower prices ✓ Gas demand at ~188 MMSCMD* led by CGD, Fertiliser and Refinery sector ✓ Consumption led by increase in domestic production, lower LNG prices 2. Ceiling price applicable for KGD6 at ~$9.87/MMBtu for 1H FY24 168 161 188 0 50 100 150 200 FY22 FY23 FY24 MMSCMD Domestic Gas and RLNG Supplies Other Domestic Gas Domestic RIL RLNG Total * As per PPAC data for Apr’23-Feb’24 3. Strong demand growth expected in the near to medium term ✓ Higher Brent levels leading to higher alternate fuel prices to support gas demand ✓ Demand from gas-based power could rise aided by recent Government directive, low hydro generation during summer season ✓ Increase in pipeline infrastructure - 10,000 km of new cross-country pipelines under construction 41
Oil to Chemicals (O2C)
O2C Operating Performance - FY24 vs FY23 Favorable feedstock cost offset impact of weaker cracks and downstream chemical margins 43 1. Margin environment remained challenging 2. Fuel cracks fell 20-45% from elevated levels, offset by lower SAED 3. Downstream chemical deltas declined YoY ✓ Polymer down 8-21%, Polyester chain down 6% US$ Mn FY24 FY23 % YoY Revenue 67,712 564,749 594,650 -5.0% EBITDA 7,481 62,393 62,075 0.5% EBITDA Margin 11.0% 10.4% +60 bps Prod. meant for Sale (MMT) 67.8 66.4 2.1% 4. Superior operating performance driven by ✓ Favorable light feed cracking economics ✓ Optimized crude basket cost ✓ Strong demand enabling higher domestic placement ✓ Higher transportation fuel volumes 5. Resilient EBITDA given tough operating context ✓ EBITDA margin improved by 60 bps
O2C Operating Performance – 4Q FY24 Higher utilization and feedstock optimization supported profitability for the quarter 44 1. Margin environment across fuels and chemicals declined YoY ✓ Fuel cracks declined 11-18% ✓ Polymer deltas declined 9-34% with subdued global demand and excess supply ✓ Polyester chain deltas declined 6% 2. YoY EBITDA improved by 3.0% ✓ Value added crude processing helped mitigate sharp fall in fuel cracks ✓ Significant light feed cracking advantage aided profitability in weak margin environment ✓ Marginal increase in volumes 1. QoQ EBITDA up sharply by 19.3% ✓ Availability of all units following planned M&I activity ✓ Sharp rebound in gasoline cracks ($13.3 vs $7.6/bbl) ✓ Improved PE(+6%) and PP(+7%) deltas US$ Mn (₹ crore) % QoQ % YoY Revenue 17,101 142,634 1.1% 10.9% EBITDA 2,012 16,777 19.3% 3.0% EBITDA Margin 11.8% +180 bps -90 bps Prod. meant for Sale (MMT) 17.1 4.3% 0.0%
Business Environment : Demand and Utilization Levels (4Q FY24) Oil and product markets remained well supplied leading to lower operating rates 45 102 mb/d  1.6 mb/d YoY Global Oil Demand 60.9 MMT  4.2% YoY India Oil Demand 4.9 MMT  0.2 % YoY India Polymer Demand 1.7 MMT  1.3% YoY India Polyester Demand 77.4%  260 bps YoY Global Refinery Operating Rate 76.3%  340 bps YoY Global Cracker Operating Rate 1. Global oil demand in 4Q FY24 rose by 1.6 mb/d YoY ✓ Market: China (0.8 mb/d), Other Asia (0.5 mb/d) ✓ Product: Jet (0.7 mb/d), Gasoil (0.26 mb/d), Gasoline (0.16 mb/d) 2. India’s polymer demand stable, while polyester demand declined marginally YoY 3. Global Refinery operating rate declined by 260 bps YoY due to unplanned refineries outages and maintenance 4. Global Cracker operating rate declined by 340 bps YoY ✓ Weak global demand trend and new capacity additions mainly in ME and Asia Source : IEA, Platts, ESAI, HIS, PPAC, RIL internal estimates
Domestic Environment – Oil Demand Record oil demand in FY24 – improving road infra, rising auto sales, increasing air traffic 46 8.7 22.0 2.0 9.3 22.8 2.1 9.5 22.9 2.2 0 5 10 15 20 25 Gasoline Diesel ATF 4QFY23 3QFY24 4QFY24 In MMT 1. 4Q FY24 India oil demand at 60.9 MMT, up 4.2% YoY ✓ Gasoline demand up due to rising personal mobility trend ✓ HSD demand up with resilient agricultural sector demand and positive momentum in industrial and mining activities ✓ ATF demand up with continuing uptrend in domestic air passenger traffic at 39.1 Mn, up 4.4% YoY 2. FY24 India oil demand at 233.3 MMT (+4.6% YoY) ✓ ATF (+11.8%), Gasoline (+6.4%), Diesel (+4.4%) ✓ Domestic air passenger traffic up 13% YoY Source : PPAC, DGCA 35.0 85.9 7.4 37.2 89.7 8.2 0 20 40 60 80 100 Gasoline Diesel ATF FY23 FY24 8.4% 4.2% 10.1% 6.4% 4.4% 11.8%
Domestic Environment – Polymer Demand 47 Strong domestic polymer demand amidst robust economic activities 1. 4Q FY24 Polymer demand remained flat YoY ✓ PE, PP demand up with healthy growth in infrastructure, FMCG, consumer durables, automotive and e-commerce food packaging sectors ✓ PVC demand down 18% due to high base effect led by higher imports in 4Q FY23 2. FY24 Polymer demand grew 14% YoY ✓ PE demand up 20% driven by infrastructure pipes, FMCG and retail packaging sectors ✓ PP demand up 9% led by consumer durables (appliances & paints), furniture, households, automotive ✓ PVC demand up 9% driven by agriculture, infrastructure and government projects 6% 7% -18% 0% -20% -15% -10% -5% 0% 5% 10% PE PP PVC Polymer Polymer India Demand Growth YoY ( 4Q FY24 ) Polymer India Demand Growth YoY (FY24) 20% 9% 9% 14% 0% 5% 10% 15% 20% 25% PE PP PVC Polymer 47 Source : RIL internal estimates
Domestic Environment – Polyester Demand 48 Strong PET demand led by increased beverages consumption 1. 4Q FY24 Polyester demand declined marginally YoY ✓ PET demand up driven by anticipated summer demand from beverages sector ✓ PFY & PSF demand down due to weak textile export demand 2. FY24 Polyester demand grew by 4% YoY ✓ PET demand supported by beverage segment - cricket world cup and surge in tourism activities ✓ PSF demand down due to weak textiles export market -3% -5% 8% -1% -7% -2% 3% 8% PSF PFY PET Polyester Polyester India Demand Growth YoY ( 4Q FY24 ) -2% 2% 13% 4% -5% 0% 5% 10% 15% 20% PSF PFY PET Polyester Polyester India Demand Growth YoY (FY24) 48 Source : RIL internal estimates
Polymer Deltas 49 Polymer margins remained weak amid lower demand growth globally 1. Polymers deltas witnessed mixed trends on QoQ basis ✓ PE and PP deltas increased by 6% and 7% respectively ✓ PVC delta decreased 7% as PVC prices remained stable while EDC price increased by 9% 2. US Ethane prices down 16% QoQ – further improving Ethane vs Naphtha cracking economics 3. FY24 polymer deltas down by 8%-21% YoY ✓ Markets remained well supplied with commissioning of new capacities and low demand in key markets ✓ Product price decreased by 10-19%, while Naphtha price decreased by 11% $/MT $/MT 340 367 482 292 281 342 308 300 316 0 250 500 HDPE-Naphtha PP-Naphtha PVC-Naphtha/EDC 4QFY23 3QFY24 4QFY24 Polymer Deltas – 4Q FY24 362 360 474 333 315 373 0 250 500 HDPE-Naphtha PP-Naphtha PVC-Naphtha/EDC FY 23 FY 24 Polymer Deltas – FY24 49 Source : Platts, RIL internal estimates
Polyester Chain Delta 50 Subdued Polyester chain delta amid weak downstream demand 1. QoQ polyester chain delta stable ✓ MEG delta improved due to higher freights amid Red Sea crisis and Panama Canal restrictions ✓ PX deltas lower with firm feedstock prices and surplus availability ✓ Weaker PSF & PFY deltas with subdued global demand 2. FY24 polyester chain delta down 6% ✓ Improvement in PX delta led by tight supplies ▪ Integrated producers continue to optimize production based on PX vs gasoline economics ✓ PTA margins impacted due to capacity expansion in China $/MT 517 488 486 0 150 300 450 600 4QFY23 3QFY24 4QFY24 Polyester Chain Delta 4Q FY24 550 518 0 150 300 450 600 FY23 FY24 Polyester Chain Delta FY24 $/MT 50 Source : Platts, RIL internal estimates
Gasoil Cracks – 4Q FY24 51 Gasoil cracks moderated due to lower demand and elevated supply 1. Global gasoil demand increased by ~0.26 mb/d YoY to 28.3 mb/d ✓ Demand increase in Asia Pacific ( 0.2 mb/d), partly offset by decrease in Europe ( 0.1 mb/d) 2. QoQ and YoY Gasoil cracks moderated from highs but remained healthy ✓ Seasonally weak demand, supply from new refineries as well as from those returning from maintenance ✓ Resilient Russian diesel exports weighed on the cracks ✓ Global gasoil drawdown Source: Platts, Energy Aspects 28.2 24.5 23.1 535.1 540.9 537.2 500 530 0 5 10 15 20 25 30 4Q FY23 3Q FY24 4Q FY24 Mn bbls $/bbl Gasoil (10 ppm) Gasoil Cracks Global Diesel Inventories (R.H.S)
Jet/Kero Cracks – 4Q FY24 52 Jet/Kero cracks continue to remain at healthy levels with strong aviation sector demand Source: Platts, Energy Aspects 1. YoY Global Jet/kero demand increased by 0.7 mb/d YoY to 7.6 mb/d ✓ Asia Pacific ( 0.4 mb/d), Europe ( 0.1 mb/d) 2. QoQ Jet/Kero cracks moderated with healthy Chinese exports and seasonally lower demand 3. YoY Jet/Kero cracks declined from elevated levels in the previous year ✓ Increase in inventory weighed on cracks 26 23.6 21.2 101.0 112.7 116.7 95 105 115 0 5 10 15 20 25 30 4Q FY23 3Q FY24 4Q FY24 Mn. bbls $/bbl Jet/Kero ATF/Kero Cracks Global Jet Inventory (RHS)
Gasoline Cracks – 4Q FY24 Strength in gasoline cracks driven by healthy demand from Asia and North America, low inventories Source: Platts, Energy Aspects 1. Global gasoline demand increased ~0.16 mb/d YoY to 26.1 mb/d ✓ North America ( 0.1 mb/d), Europe ( 0.1 mb/d) 2. QoQ Gasoline cracks up sharply ✓ Unplanned refinery outages amid heavy refinery maintenance in US and Asia ✓ Lower inventories coupled with lower exports from China ✓ Anticipated demand spurt during US driving season (May-Sep’24) 3. YoY gasoline cracks remained largely stable 15 7.6 13.3 456.1 464.1 449.3 420 450 0 5 10 15 20 4Q FY23 3Q FY24 4Q FY24 Mn bbls $/bbl Gasoline 92R Cracks Gasoline Cracks Global Gasoline Inventory (RHS) 53
Fuel Cracks – FY2023-24 New supply and focus on fundamentals led to moderation in cracks Source: Platts, Energy Aspects 40.7 14.7 32.9 23.0 11.6 21.2 0 5 10 15 20 25 30 35 40 45 Gasoil Gasoline 92R ATF $/bbl YoY Fuel Cracks FY23 FY24 1. Fuel cracks declined from historic highs, but remained above mid- cycle levels (Dislocation in energy markets in FY23) 2. Gasoil cracks impacted by ✓ Resilient Russian supplies despite sanctions ✓ Lower industrial activities, higher supplies from new refineries 3. Gasoline cracks declined due to increased supply from new refineries ✓ Lower Chinese exports with rising demand on China reopening supported cracks 4. ATF cracks moderated in-line with gasoil cracks ✓ Continuing recovery in global air travel kept cracks supported 54
O2C Operating Performance Agile feed-mix and product mix optimization to maximize margin capture 55 1. Throughput of primary and secondary units maximized post major M&I activity in previous quarter 2. Advantaged Crude and Ethane sourcing to minimize feedstock cost 3. Domestic fuel sale maximized with improved demand 4. Aromatics component blending optimized to gasoline vs. PX 5. Gasoline netback maximized by capturing arbitrage opportunities in US markets 6. Fuel cost minimized with sustained gasifier operation at higher throughput with minimum LNG sourcing 4Q FY24 3Q FY24 Throughput 19.8 18.7 Transportation fuels 11.3 10.2 Polymers 1.5 1.2 Fibre Intermediates 0.8 0.8 Polyesters 0.6 0.6 Chemicals and others 2.9 3.6 Total 17.2 16.4 Feedstock (Vol in MMT) Production meant for sale
O2C Business Dynamics 56 Demand and Margin 1. Global oil demand growth expected at ~1.2 mb/d in 2024 after strong growth of 2.3 mb/d in 2023 2. Domestic demand for fuels and downstream chemical likely to remain strong ✓ Continuing emphasis on infrastructure projects, increased mobility, positive consumer sentiment 3. Gasoline cracks expected to be supported by strong seasonal demand and lower inventory levels 4. Middle distillates likely to remain firm with supply disruptions, refinery vulnerability in conflict zones 5. Downstream chemical margin expected to recover gradually with slowing pace of capacity addition Source: IEA, Platts. Geopolitics, incremental supplies, production cuts to influence energy and commodity prices Challenges / Volatility 1. OPEC+ members extending voluntary production cuts and geopolitical tensions in Middle East and Russia/Ukraine to keep oil price higher ✓ Attacks on energy infrastructure may result in loss of refining capacity in Russia, prompting further crude oil output cuts 2. Geopolitics impacting trade routes leading to higher voyage time, bunker consumption and freight rates 3. New refineries starting up in China, Middle East and West Africa pose a challenge with incremental product supply outpacing demand in major markets
57 Summary
Summary 58 1. Record operating performance demonstrates robust strategy and strong execution ✓ EBITDA nearly doubled over 5-year period; Consumer business EBITDA up ~4x in the same period 2. Strong visibility of continuing growth trajectory and reduced volatility with dynamic business portfolio 3. Energy businesses ✓ Next phase of O2C growth to be led by India centric capacity expansion, customer centricity and circularity ✓ Green energy investments into integrated manufacturing ecosystem and RTC power to deliver lower and predictable energy cost and new revenue streams ✓ KG D6 to provide valuable transition fuel for the economy 4. Retail and Jio – Unparalleled access to Indian consumers with multiple growth drivers ✓ Jio – Executing identified strategies for Individuals, Homes, Enterprise and Digital Platforms ✓ Retail – Expanding omni-channel offerings, strengthening logistics, product development and premiumization 5. Robust balance sheet, prudent capital allocation and risk management framework underpin future growth
Thank You 59

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RIL-4Q-FY24-Analyst-Presentation-22Apr24-website.pdf

  • 1. Financial Results Presentation – FY 2023-24 / 4Q FY24 22 April 2024 1
  • 2. Forward Looking Statement 2 This presentation contains forward-looking statements which may be identified by their use of words like “plans,” “expects,” “will,” “anticipates,” “believes,” “intends,” “projects,” “estimates” or other words of similar meaning. All statements that address expectations or projections about the future, including, but not limited to, statements about the strategy for growth, product development, market position, expenditures, and financial results, are forward-looking statements. Forward-looking statements are based on certain assumptions and expectations of future events. The companies referred to in this presentation cannot guarantee that these assumptions and expectations are accurate or will be realized. The actual results, performance or achievements, could thus differ materially from those projected in any such forward-looking statements. These companies assume no responsibility to publicly amend, modify or revise any forward looking statements, on the basis of any subsequent developments, information or events, or otherwise.
  • 4. FY 2023-24 – A Year of Milestones Strong foundation for creating further value in coming years RIL Consolidated EBITDA crosses ₹175,000 crore mark RIL Consolidated PBT crosses ₹100,000 crore mark RIL Market Cap crosses ₹20,00,000 crore mark JPL Revenue crosses ₹100,000 crore mark JPL Net Profit crosses ₹20,000 crore mark Digital Services Completion of world’s fastest 5G rollout RRVL Revenue crosses ₹300,000 crore mark RRVL Net Profit crosses ₹10,000 crore mark Retail Store footprint crosses 75 mn sq.ft. mark 4 1. RIL is the first Indian company to cross these milestones 2. Net Profits of JPL and RRVL rank them among India’s Top 20 and 30 companies respectively
  • 5. FY 2023-24 – Consolidated Highlights High quality assets and business model delivering record performance – EBITDA up ~2x in 5 years 5 1. Consolidated EBITDA at ₹ 178,677 crore (US$ 21.4 billion), up 16.1% YoY ✓ Net profit at ₹ 79,020 crore (US$ 9.5 billion), up 7.3% YoY 2. Consumer businesses EBITDA at ₹ 79,779 crore (US$ 9.6 billion), up 16.9% YoY, 5-year CAGR at ~30% ✓ Strong growth in Retail on larger physical-digital footprint, 36% increase in footfalls ✓ Digital Services growth led by industry-leading customer engagement, 5G adoption and FTTH penetration 3. Resilient O2C performance aided by operational flexibility in a challenging margin environment ✓ Feedstock optimization, ethane cracking and higher domestic placement 4. Oil & Gas growth led by higher volumes with the ramp-up in KG D6 gas and condensate production 5. Robust balance sheet with reducing net debt; declining trend in capex
  • 6. FY 2023-24 – Key Segment Highlights (1/2) 6 1. Revenue growth across segments; EBITDA margin improved 60 bps to 8.4% 2. Store footfalls at 1,063 Mn (+36.3% YoY); Registered customer base crosses 300 Mn 3. Net addition of 796 new stores 4. Own F&L brands driving growth; 3 brands have crossed ₹ 2,000 crore of annual sales 1. EBITDA margin at 50.2%, up 50 bps driven by higher customer base and operating leverage 2. Industry leading net subscriber addition of 42.4 Mn 3. Data traffic up 31% YoY at 148.5 Bn GB – network scale up and increasing 5G adoption 4. Over 108 Mn subscribers transitioned to Jio True5G 5. Jio AirFiber being rolled out across 5,900 towns Retail (RRVL) Leading position driven by impactful scale and superior value offering Digital Services (JPL) US$ Mn ₹ crore % YoY Revenue 36,783 306,786 17.8% EBITDA 2,762 23,040 28.5% No. of Stores 18,836 4.4% Area Operated (Mn. Sq.ft.) 79.1 20.6% US$ Mn ₹ crore % YoY Revenue 15,409 128,521 11.7% EBITDA 6,589 54,959 12.8% ARPU (₹ ) 181.7 1.6% Subscribers (Mn) 481.8 9.7%
  • 7. FY 2023-24 – Key Segment Highlights (2/2) 7 1. Globally weak margin environment ✓ 20-45% fall in fuel cracks from elevated levels, offset by lower SAED ✓ Multi-decade low downstream chemical deltas on supply overhang 2. Operational flexibility delivering stable EBITDA ✓ Optimized feedstock sourcing ✓ Advantageous ethane vs. naphtha cracking ✓ Robust domestic demand environment 1. Strong EBITDA growth led by sharp volume growth of gas and condensate ✓ Partly offset by 5% decrease in KG D6 gas price realization 2. KG D6 average production ✓ Gas - 27.1 MMSCMD vs. 19.3 MMSCMD ✓ Oil/Condensate – 18,302 bbl / day Volume growth driving upstream earnings; Maximizing benefit of O2C integration and flexibility O2C Oil & Gas US$ Mn ₹ crore % YoY Revenue 67,712 564,749 -5.0% EBITDA 7,481 62,393 0.5% Prod. meantfor Sale(MMT) 67.8 2.1% US$ Mn ₹ crore % YoY Revenue 2,930 24,439 48.0% EBITDA 2,421 20,191 48.6% KG D6 Production (BCFe) 260.3 56.8%
  • 8. Consolidated Financial Results : FY 2023-24 Multiple levers and India growth driving earnings delivery 8 1. Revenue growth led by continued momentum in consumer businesses ✓ O2C revenues impacted by 13.5% decline in average Brent crude price 2. Solid execution across businesses delivering robust EBITDA growth 3. PBT crossed ₹ 100,000 crore mark, up 11.4% despite higher depreciation and finance cost 4. Net profit growth at 7.3% ✓ YoY comparison impacted due to availing of tax credits last year (in ₹ crore) US$ Mn FY24 FY23 % YoY Revenue 119,912 1,000,122 974,864 2.6% EBITDA 21,423 178,677 153,920 16.1% Finance Cost 2,772 23,118 19,571 18.1% Depreciation 6,095 50,832 40,303 26.1% PBT 12,556 104,727 94,046 11.4% Tax 3,082 25,707 20,376 26.2% Net Profit 9,474 79,020 73,670 7.3% 1. Net Profit growth YoY: ✓ RIL (standalone): ₹ 42,042 crore, down 2.2% ✓ JPL: ₹ 21,423 crore, up 12.0% ✓ RRVL: ₹ 11,101 crore, up 20.9%
  • 9. EBITDA Contribution (FY24 vs FY23) Unique business model delivering all-round growth 9 1. O2C – Optimized feedstock sourcing and strong domestic markets providing resilience 2. Oil & Gas – Sharp 56.8% growth in volume helped deliver 48.6% increase in EBITDA 3. Retail – broad-based revenue growth across categories and margin expansion led to 28.4% increase in EBITDA 4. Digital Services – State-of-the-art network enabled strong subscriber growth, operating leverage driving profitability 5. Others largely reflect increased contribution from other businesses, higher treasury income and reduction in unallocable expenses Note: Based on Consolidated segment EBITDA 153,920 318 6,602 5,108 6,411 6,318 178,677 FY23 O2C Oil & Gas Retail Digital Services Others FY24 FY24 vs FY23 (₹ crore)
  • 11. Consolidated Financial Results : 4Q FY24 Strong EBITDA growth through a portfolio of dynamic businesses 11 1. YoY increase in Revenue led by low double-digit growth in consumer and O2C business 2. Continuing momentum in consumer businesses driving strong EBITDA growth ✓ Higher KG D6 volumes boosted upstream EBITDA 3. Net profit marginally up YoY as tax credits availed last year 4. QoQ strong performance ✓ 19% increase in O2C EBITDA post M&I activity ✓ Strong 8.2% growth in Net profit US$ Mn ₹ crore % QoQ % YoY Revenue 31,753 264,834 6.7% 10.8% EBITDA 5,653 47,150 5.5% 14.3% Finance Cost 691 5,761 -0.5% -1.0% Depreciation 1,627 13,569 5.2% 18.5% PBT 3,335 27,820 7.1% 16.0% Tax 789 6,577 3.7% 138.8% Net Profit 2,546 21,243 8.2% 0.1% 1. Net Profit growth YoY: ✓ RIL (standalone): ₹ 11,283 crore, down 18.0% ✓ JPL: ₹ 5,583 crore, up 12.0% ✓ RRVL: ₹ 2,698 crore, up 11.7%
  • 12. EBITDA Contribution (4Q FY24 vs 4Q FY23) Significant growth contribution from Upstream and consumer businesses 12 1. O2C – EBITDA at ₹ 16,777 crore, up 3% YoY ✓ Feedstock flexibility and sourcing supported positive performance in tough market environment 2. Oil & Gas – EBITDA at ₹ 5,606 crore, up 47.5% YoY ✓ High growth with ramp-up in MJ field production 3. Retail – EBITDA at ₹ 5,829 crore, up 18.4% YoY ✓ Strong footfalls, store expansion and continuous focus on widening product portfolio 4. Digital Services – EBITDA at ₹ 14,644 crore, up 9.4% YoY ✓ 10% increase in net subscriber addition and 35% increase in data traffic Note: Based on Consolidated segment EBITDA 41,252 484 1,805 904 1,256 1,449 47,150 4Q FY23 O2C Oil & Gas Retail Digital Services Others 4Q FY24 4Q FY24 vs 4Q FY23 (₹ crore)
  • 13. EBITDA Contribution (4Q FY24 vs 3Q FY24) Robust QoQ EBITDA growth led by O2C 13 1. Higher utilization and improved refining economics supported O2C performance ✓ All units fully operational post M&I turnaround ✓ Weak downstream margins constrained profitability 2. Oil & Gas – Sustained performance with marginal decline in volumes 3. Retail - Store rationalization and seasonality affected performance 4. Digital Services – Robust 10.9 mn net subscriber addition aiding profitability Note: Based on Consolidated segment EBITDA 44,678 2,713 198 442 383 16 47,150 3Q FY24 O2C Oil & Gas Retail Digital Services Others 4Q FY24 4Q FY24 vs 3Q FY24 (₹ crore)
  • 14. Robust Balance Sheet Cash flows funding capex; robust balance sheet provides unparalleled financial flexibility 1. Decline in Net Debt with moderation in capex post 5G roll-out ✓ Capex for the year at ₹ 131,769 crore and Cash profit at ₹ 141,969 crore 2. Sustained focus on ✓ Maintaining Net Debt to EBITDA at below 1x ✓ Supporting growth initiatives through internal accruals 14 Mar-23 Change US$ Mn ₹ crore ₹ crore ₹ crore Gross Debt 38,921 324,622 313,966 10,656 Cash & cash equi. 24,979 208,341 188,200 20,141 Net Debt 13,942 116,281 125,766 -9,485 Mar-24
  • 16. Jio’s Differentiated True5G Sees Rapid Adoption Jio has world’s largest 5G subscriber base, outside China 16 ~108 million subscribers migrated to 5G 5G network now accounts for ~28% of mobility data traffic Global State of 5G India amongst few countries with full 5G rollout Superior customer experience Ookla rates Jio 5G the best network in terms of availability, latency and video start time Source: Ookla
  • 17. Jio Continues To Gain Subscriber Share Jio building up on its market leadership 17 Jio strengthens its market leadership with highest subscriber market share gain in the industry – ~300bps increase since Dec’22 Jio’s gains have been broad based across all circle categories Superior 5G network, premium smartphone partnerships and JioBharat are driving uptake of Jio’s services 37.1 37.6 38.4 39.1 39.7 40.1 32.2 32.4 32.7 32.8 33.0 33.0 21.1 20.7 20.1 19.8 19.3 18.9 9.6 9.3 8.8 8.3 8.0 8.0 Dec-22 Mar-23 Jun-23 Sep-23 Dec-23 Feb-24 Subscriber Market Share (%) Jio Op A Op B Op C
  • 18. 18 Jio True5G Customer Base Lights Up India
  • 19. JioAirFiber Is Accelerating Home Connects Unmatched value proposition drives adoption and engagement 19 Jio AirFiber is now available across 5,900 towns in the country AirFiber is seeing healthy demand in Tier2 towns and beyond which has driven highest ever home connects Content bundling is driving strong engagement with per capita monthly usage of ~400 GB Expanding distribution to further accelerate the momentum
  • 20. Cohort Specific Propositions To Drive SMB Business Customized digital solutions with unparallel connectivity reach 20 Digital campus with managed Wi-Fi and affordable compute services Hospitals College Digital transformation with Hospital Management system (HIMS), in-room Wi-Fi and entertainment Manufacturing Hotels In-room entertainment with Guest Wi- Fi driven by JHES platform and AirFiber Connectivity with cloud-based security and surveillance solutions Jio Products Connectivity Jio Hospitality Entertainment Solution Managed Wi-Fi Cloud Compute IoT Surveillance
  • 21. Quarterly Highlights Increasing traction on 5G and Homes is a key focus area for FY25 1 2 3 21 Robust financial performance by Jio Platforms Limited ➢ Consolidated Revenue was Rs 109,558 crore, growth of 11.7% YoY in FY24 ➢ Consolidated EBITDA at Rs 54,959 crore, growth of 12.8% YoY in FY24 ➢ In Q4FY24, consolidated Revenue and EBITDA were Rs 28,871 crore and Rs 14,360 crore, respectively Strong subscriber traction with total subscriber base of 481.8 million as of March 2024 ➢ ARPU for the quarter at Rs181.7 Monthly data traffic on Jio network crosses 14 Exabytes ➢ Total traffic was 40.9 Exabytes, up 35.2% YoY driven by increasing traction on 5G and Homes JioAirFiber has seen good demand leading to highest ever quarterly home connects 4
  • 22. Data Traffic Continues To Grow Substantially Trend to continue with increasing digital adoption 22 2.4x increase in annual data traffic over the past three years 5G rollout and ramp-up of homes connect have driven industry-leading data traffic growth in FY24 Per capita monthly data usage has increased to 28.7 GB vs 13.3 GB three years ago Jio’s network continues to lead in experience – availability, speed and latency 62 91 113 148 FY21 FY22 FY23 FY24 Total Data Traffic (Billion GBs)
  • 23. RJIL: Key Operating Metrics Sustained improvement in customer engagement ➢ Strong net customer addition of 10.9 million in Q4’FY24 ➢ ARPU at Rs 181.7 in Q4’FY24 ➢ Robust growth in data consumption led by increasing mix of 5G & Home users with per capita usage of 28.7 GB per month ➢ Total data and voice traffic in Q4’FY24 increased 35.2% and 9.7% YoY, respectively Q4’FY24 Q3’FY24 Q4’FY23 Total Customer base (million) 481.8 470.9 439.3 Net Customer addition (million) 10.9 11.2 6.4 ARPU (Rs/ month) 181.7 181.7 178.8 Total Data Consumption (Billion GBs) 40.9 38.1 30.3 Per Capita Data Consumption (GB/ month) 28.7 27.3 23.1 Voice on Network (crore mins per day) 1,583 1,491 1,459 Per Capita Voice Consumption (mins/ month) 1,008 982 1,003 23
  • 24. RJIL: Q4’FY24 Financials Steady improvement in key financial metrics Operating Revenue (in Rs crore) EBITDA (in Rs crore) ➢ RJIL Operating Revenue growth of 11.0% YoY driven by industry leading subscriber growth ➢ RJIL EBITDA growth of 11.5% YoY led by higher revenues and margin at 52.9% 24 23,394 24,042 24,750 25,368 25,959 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24 12,315 12,663 13,059 13,422 13,734 Mar-23 Jun-23 Sep-23 Dec-23 Mar-24
  • 25. RJIL: FY24 Financials Connectivity platform continues to scale up Operating Revenue (in Rs crore) EBITDA (in Rs crore) ➢ RJIL revenue up 10.3% YoY ➢ EBITDA growth of 12.4% YoY led by higher revenues and ~100bps increase in margins 25 69,888 76,977 90,786 100,119 FY21 FY22 FY23 FY24 31,461 37,857 47,034 52,878 FY21 FY22 FY23 FY24
  • 26. Jio Platforms Limited: Key Financials Double-digit growth across key financial metrics 26 ➢ FY24 Revenue and EBITDA growth of 11.7% and 12.8% YoY, respectively with EBITDA margins of 50.2%. ➢ Revenue from operations at Rs.28,871 Cr in Q4’FY24; 13.4% YoY growth ➢ EBITDA increased to Rs.14,360 Cr in Q4’FY24 with growth of 12.5% YoY ➢ Profit after Tax increased to Rs.5,583 Cr in Q4 FY24; growth of 12.0% YoY *Gross Revenue is value of Services figures in Rs. crore, unless otherwise stated Particulars JPL Consolidated Q4 FY24 Q3 FY24 Q4 FY23 FY24 FY23 Gross Revenue* 33,835 32,510 29,871 1,28,521 1,15,099 Operating Revenue 28,871 27,697 25,465 1,09,558 98,099 EBITDA 14,360 13,955 12,767 54,959 48,721 EBITDA Margin 49.7% 50.4% 50.1% 50.2% 49.7% D&A 5,811 5,602 5,093 22,103 18,964 EBIT 8,548 8,353 7,674 32,856 29,757 Finance Costs 1,018 1,028 1,014 4,048 4,082 Profit before Tax 7,527 7,323 6,663 28,797 25,670 Profit after tax 5,583 5,445 4,984 21,423 19,124
  • 28. 28 Performance Highlights Resilient performance delivered at scale 1. Revenue crossed Rs. 3 lakh crore in FY24, a significant milestone in the journey of Reliance Retail 2. Revenue for Q4 FY24 grew 11% YoY, led by Consumer Electronics and Fashion & Lifestyle consumption baskets 3. Reported EBITDA crossed Rs. 23,000 crore in FY24, grew by 29% YoY; EBITDA for Q4 FY24 grew by 19% YoY 4. EBITDA margin from operations at 8.1% for FY24, up 50 bps YoY and 8.3% in Q4 FY24, up 60 bps YoY 5. Serving customers at scale with registered base of 300 mn+, footfalls of > 1 bn and transactions > 1.25 bn 6. Opened 1,840 new stores with gross area addition of 15.6 mn sq. ft. in FY24 and 562 new stores with gross area addition of 7.8 mn sq. ft. in Q4 FY24; total store count of 18,836 with 79.1 mn sq. ft. retail area 7. Equity fund raise of Rs 17,814 crore in FY24, including Rs. 2,500 crore infused by RIL during the quarter
  • 29. 29 Financial Performance Delivering consistent growth in revenue & profit Q4 FY24 Q4 FY23 % Change YoY Parameter FY24 FY23 % Change YoY 76,627 69,267 11% Gross Revenue 306,786 260,364 18% 67,610 61,559 10% Net Revenue 273,079 230,931 18% 5,632 4,769 18% EBITDA from Operations 22,196 17,609 26% 8.3% 7.7% +60 bps EBITDA Margin from Operations (%) 8.1% 7.6% +50 bps 191 145 32% Investment Income 844 319 165% 5,823 4,914 19% Total EBITDA 23,040 17,928 29% 8.6% 8.0% +60 bps Total EBITDA Margin (%) 8.4% 7.8% +60 bps 2,698 2,415 12% Profit After Tax 11,101 9,181 21% In Rs. crore
  • 30. 30 Performance Highlights: Consumer Electronics 1. Stores delivers steady growth led by ABV growth & improved conversions 2. Leveraged “Digital India Sales” event to drive engagement, with 15% YoY sales growth 3. Category specific campaigns such as ‘Digital Chill Fest’ for ACs & ‘Big Screen Fest’ for TVs witnessed robust response, driving customer engagement and offtake 4. resQ expands service network with 24 new centers; serves ~1.2 mn customers 5. Expands merchant base for JMD, up 20% YoY 6. PBG business launches new brand WYZR; introduced a range of coolers with plans to expand to other categories Republic Day Campaign resQ Plans Business delivers another quarter of steady performance
  • 31. 31 Performance Highlights: Fashion & Lifestyle (1/2) 1. Festivals (Sankranti, Holi) & winter wear campaign drive customer engagement 2. New formats: Yousta, Azorte & GAP continue to gain traction 3. Own brands continue to drive growth: 3 brands crossing milestone of Rs 2,000 crore annual sales 4. Developing fast fashion supply chain ecosystem; continuing to accelerate launch of new options Sankranti Campaign Yousta store launch, Vadodara Apparel & Footwear Continued focus on store formats & assortments in line with customer expectations 1. Sustained focus on improving customer experience: Product rating feature, storefront personalization 2. Strengthened portfolio with 30%+ catalogue growth led by new brands 3. ‘All Star Sale’ delivers 36% traffic growth and adds ~300K new customers Ajio B2C
  • 32. 32 Performance Highlights: Fashion & Lifestyle (2/2) 1. Steady growth during the quarter despite steep increase in gold prices 2. Business continues focus on growing diamond category; share up 100 bps YoY 3. Continued focus on strengthening product offering through launches on key occasions – Makar Sankrati, Valentine Day and Women’s Day Jewels Store Launch, Siwan 1. Delivered 20% YoY growth with growing consumer preference for premium brands 2. Ajio Luxe delivers steady performance; options up 44% YoY; 20+ new brands launched during the quarter 3. Hamleys continues to expand its international presence; launched first store in Italy AFEW Store Launch, Trident, Mumbai Premium Brands Jewels Strengthening design capabilities and portfolio to drive growth
  • 33. 33 Performance Highlights: Grocery 1. Grocery delivers steady performance led by Smart & Smart Bazaar 2. ABV growth led by premiumization; trends towards shift in demand for premium products like millets over wheat, liquid detergents over soap bars etc. 3. ‘Full Paisa Vasool Sale’ grows 21% YoY led by HPC, confectionery & snacks 4. With deeper regional presence, regional nuances offering strong growth opportunities. In certain markets, sales during run-up to Holi exceeded Diwali 5. Focus on growing new categories - international food, body mist, serums etc. to cater to changing consumer preferences 6. “Metro Kirana Utsav” drives onboarding of new kiranas; growing HoReCa segment Full Paisa Vasool campaign Holi campaign Continue to drive customer engagement with enhanced offerings
  • 34. 34 Performance Highlights: JioMart 1. Overall AOV grew by 30% YoY; units per order up 37% YoY 2. Seller base up 94% YoY; live selection up 32% YoY 3. ‘Holi Ready’ & ‘Republic Day’ sales events drive customer engagement with growth in sessions and GMV 4. Launched new functionalities to enhance shopping experience: ‘Buy Again’ widget, customer rating for products GMV: Gross Merchandise Value JioMart campaign Enhancing customer experience with improved offerings & platform features
  • 35. 35 Performance Highlights: Consumer Brands 1. Consumer brands business continues to scale-up, growing 3x+ YoY in general trade i. Strong traction on Campa and Independence brands driving growth of beverage and staples categories 2. New product launch: Campa Runner Energy Lemon drink, Necto (aerated beverage), brewed tea under brand Brew House 3. Key Acquisitions / Partnerships: i. Acquired Ravalgaon IP rights including trademarks, recipe etc. relating to sugar boiled confectionery ii. Partnered with Elephant House, Sri Lanka to manufacture & sell beverages under ‘Elephant House’ brand in India; reciprocal rights to sell Campa in Sri Lanka Broadening product offerings to cater to growing customer demand Necto Campa Runner Energy Brew Tea New Product Launches
  • 37. Oil and Gas Operating Performance – FY24 Record EBITDA; flawless execution to deliver enhanced energy security for India US$ Mn FY24 FY23 % YoY Revenue 2,930 24,439 16,508 1.5x EBITDA 2,421 20,191 13,589 1.5x EBITDA Margin (%) 82.6% 82.3% +30 bps Production (RIL share in BCFe) KG D6 260.3 166.0 56.8% CBM 8.3 9.3 -10.8% Price Realisation KG D6 (GCV - $/MMBTU) 10.10 10.60 -4.7% CBM (GCV - $/MMBTU) 14.43 21.63 -33.3% Condensate ($/barrel) 81.17 - - ₹ crore 37 1. KG D6 – Field performance as per expectations ✓ Production stable across 3 fields ✓ Average gas production at 27.1 MMSCMD ✓ 100% Uptime, Zero safety incident 2. Significant improvement in Revenue and EBITDA ✓ Increased production offset lower gas prices ✓ Domestic production at 11-year high
  • 38. Oil and Gas Operating Performance – 4Q FY24 EBITDA growth led by increase in gas production and incremental contribution from Condensate US$ Mn ₹ crore % QoQ % YoY Revenue 775 6,468 -3.7% 42.0% EBITDA 672 5,606 -3.4% 47.5% EBITDA Margin (%) 86.7% +30 bps +330 bps Production (RIL share in BCFe) KG D6 71.4 -1.2% 66.4% CBM 2.1 6.1% -4.5% Price Realisation KG D6 (GCV - $/MMBTU) 9.53 -1.3% -16.3% CBM (GCV - $/MMBTU) 14.34 -7.8% -26.7% Condensate($/barrel) 81.20 0.2% - 38 1. Robust Y-o-Y EBITDA growth led by 66.4% higher production from KG D6 block 2. Average gas production for the quarter ✓ KGD6 at 29.7 MMSCMD ✓ CBM at ~ 0.64 MMSCMD 3. KG D6 - Development Plan for incremental production approved by Government 4. Successfully contracted 0.9 MMSCMD of CBM fro Shahdol at 12.67% of Brent + $0.78 for 2 years
  • 39. KG D6 – Fueling India’s Energy Transition 39 KG- D6 - contributing ~30% of India’s domestic gas production 6.5 17.4 19.3 27.1 0 5 10 15 20 25 30 FY21 FY22 FY23 FY24 Average Gas Production (MMSCMD) ➢ Domestic gas production at multi-year high of 99 MMSCMD with increased KG D6 production ▪ ~90% of incremental domestic production from KGD6
  • 40. 1. Global gas prices trended lower with milder winter in NE Asia / Europe ✓ Healthy EU storages at ~58.7% vs. 5 years avg. of 42.2% ✓ JKM briefly touched a low of ~US$ 8.0/ MMBtu and recovered subsequently (currently at ~US$ 10.5/ MMBtu) 2. Prices supported by revival of price sensitive demand from China, India & SE Asia and backfilling demand 3. Near term demand is likely to be supported by: ✓ Strong Brent prices and demand from Asia ✓ Uncertainty of Russian pipeline supplies through Ukraine (contract expiry in Sep’24) 4. No LNG capacity addition is expected till onset of winter 2024 Global Gas / LNG Markets 0 5 10 15 20 25 Historical Prices ($/mmbtu) JKM NBP TTF HH Strong Brent prices and demand from India, China and SE Asia to support global gas market $/ MMBtu JKM NBP TTF HH Apr’23 - Mar’24 Avg 12.26 10.82 11.09 2.51 40
  • 41. India Gas Market Scenario Strong growth visibility for India gas market 1. Indian demand rose to an all time high during FY24 with lower prices ✓ Gas demand at ~188 MMSCMD* led by CGD, Fertiliser and Refinery sector ✓ Consumption led by increase in domestic production, lower LNG prices 2. Ceiling price applicable for KGD6 at ~$9.87/MMBtu for 1H FY24 168 161 188 0 50 100 150 200 FY22 FY23 FY24 MMSCMD Domestic Gas and RLNG Supplies Other Domestic Gas Domestic RIL RLNG Total * As per PPAC data for Apr’23-Feb’24 3. Strong demand growth expected in the near to medium term ✓ Higher Brent levels leading to higher alternate fuel prices to support gas demand ✓ Demand from gas-based power could rise aided by recent Government directive, low hydro generation during summer season ✓ Increase in pipeline infrastructure - 10,000 km of new cross-country pipelines under construction 41
  • 43. O2C Operating Performance - FY24 vs FY23 Favorable feedstock cost offset impact of weaker cracks and downstream chemical margins 43 1. Margin environment remained challenging 2. Fuel cracks fell 20-45% from elevated levels, offset by lower SAED 3. Downstream chemical deltas declined YoY ✓ Polymer down 8-21%, Polyester chain down 6% US$ Mn FY24 FY23 % YoY Revenue 67,712 564,749 594,650 -5.0% EBITDA 7,481 62,393 62,075 0.5% EBITDA Margin 11.0% 10.4% +60 bps Prod. meant for Sale (MMT) 67.8 66.4 2.1% 4. Superior operating performance driven by ✓ Favorable light feed cracking economics ✓ Optimized crude basket cost ✓ Strong demand enabling higher domestic placement ✓ Higher transportation fuel volumes 5. Resilient EBITDA given tough operating context ✓ EBITDA margin improved by 60 bps
  • 44. O2C Operating Performance – 4Q FY24 Higher utilization and feedstock optimization supported profitability for the quarter 44 1. Margin environment across fuels and chemicals declined YoY ✓ Fuel cracks declined 11-18% ✓ Polymer deltas declined 9-34% with subdued global demand and excess supply ✓ Polyester chain deltas declined 6% 2. YoY EBITDA improved by 3.0% ✓ Value added crude processing helped mitigate sharp fall in fuel cracks ✓ Significant light feed cracking advantage aided profitability in weak margin environment ✓ Marginal increase in volumes 1. QoQ EBITDA up sharply by 19.3% ✓ Availability of all units following planned M&I activity ✓ Sharp rebound in gasoline cracks ($13.3 vs $7.6/bbl) ✓ Improved PE(+6%) and PP(+7%) deltas US$ Mn (₹ crore) % QoQ % YoY Revenue 17,101 142,634 1.1% 10.9% EBITDA 2,012 16,777 19.3% 3.0% EBITDA Margin 11.8% +180 bps -90 bps Prod. meant for Sale (MMT) 17.1 4.3% 0.0%
  • 45. Business Environment : Demand and Utilization Levels (4Q FY24) Oil and product markets remained well supplied leading to lower operating rates 45 102 mb/d  1.6 mb/d YoY Global Oil Demand 60.9 MMT  4.2% YoY India Oil Demand 4.9 MMT  0.2 % YoY India Polymer Demand 1.7 MMT  1.3% YoY India Polyester Demand 77.4%  260 bps YoY Global Refinery Operating Rate 76.3%  340 bps YoY Global Cracker Operating Rate 1. Global oil demand in 4Q FY24 rose by 1.6 mb/d YoY ✓ Market: China (0.8 mb/d), Other Asia (0.5 mb/d) ✓ Product: Jet (0.7 mb/d), Gasoil (0.26 mb/d), Gasoline (0.16 mb/d) 2. India’s polymer demand stable, while polyester demand declined marginally YoY 3. Global Refinery operating rate declined by 260 bps YoY due to unplanned refineries outages and maintenance 4. Global Cracker operating rate declined by 340 bps YoY ✓ Weak global demand trend and new capacity additions mainly in ME and Asia Source : IEA, Platts, ESAI, HIS, PPAC, RIL internal estimates
  • 46. Domestic Environment – Oil Demand Record oil demand in FY24 – improving road infra, rising auto sales, increasing air traffic 46 8.7 22.0 2.0 9.3 22.8 2.1 9.5 22.9 2.2 0 5 10 15 20 25 Gasoline Diesel ATF 4QFY23 3QFY24 4QFY24 In MMT 1. 4Q FY24 India oil demand at 60.9 MMT, up 4.2% YoY ✓ Gasoline demand up due to rising personal mobility trend ✓ HSD demand up with resilient agricultural sector demand and positive momentum in industrial and mining activities ✓ ATF demand up with continuing uptrend in domestic air passenger traffic at 39.1 Mn, up 4.4% YoY 2. FY24 India oil demand at 233.3 MMT (+4.6% YoY) ✓ ATF (+11.8%), Gasoline (+6.4%), Diesel (+4.4%) ✓ Domestic air passenger traffic up 13% YoY Source : PPAC, DGCA 35.0 85.9 7.4 37.2 89.7 8.2 0 20 40 60 80 100 Gasoline Diesel ATF FY23 FY24 8.4% 4.2% 10.1% 6.4% 4.4% 11.8%
  • 47. Domestic Environment – Polymer Demand 47 Strong domestic polymer demand amidst robust economic activities 1. 4Q FY24 Polymer demand remained flat YoY ✓ PE, PP demand up with healthy growth in infrastructure, FMCG, consumer durables, automotive and e-commerce food packaging sectors ✓ PVC demand down 18% due to high base effect led by higher imports in 4Q FY23 2. FY24 Polymer demand grew 14% YoY ✓ PE demand up 20% driven by infrastructure pipes, FMCG and retail packaging sectors ✓ PP demand up 9% led by consumer durables (appliances & paints), furniture, households, automotive ✓ PVC demand up 9% driven by agriculture, infrastructure and government projects 6% 7% -18% 0% -20% -15% -10% -5% 0% 5% 10% PE PP PVC Polymer Polymer India Demand Growth YoY ( 4Q FY24 ) Polymer India Demand Growth YoY (FY24) 20% 9% 9% 14% 0% 5% 10% 15% 20% 25% PE PP PVC Polymer 47 Source : RIL internal estimates
  • 48. Domestic Environment – Polyester Demand 48 Strong PET demand led by increased beverages consumption 1. 4Q FY24 Polyester demand declined marginally YoY ✓ PET demand up driven by anticipated summer demand from beverages sector ✓ PFY & PSF demand down due to weak textile export demand 2. FY24 Polyester demand grew by 4% YoY ✓ PET demand supported by beverage segment - cricket world cup and surge in tourism activities ✓ PSF demand down due to weak textiles export market -3% -5% 8% -1% -7% -2% 3% 8% PSF PFY PET Polyester Polyester India Demand Growth YoY ( 4Q FY24 ) -2% 2% 13% 4% -5% 0% 5% 10% 15% 20% PSF PFY PET Polyester Polyester India Demand Growth YoY (FY24) 48 Source : RIL internal estimates
  • 49. Polymer Deltas 49 Polymer margins remained weak amid lower demand growth globally 1. Polymers deltas witnessed mixed trends on QoQ basis ✓ PE and PP deltas increased by 6% and 7% respectively ✓ PVC delta decreased 7% as PVC prices remained stable while EDC price increased by 9% 2. US Ethane prices down 16% QoQ – further improving Ethane vs Naphtha cracking economics 3. FY24 polymer deltas down by 8%-21% YoY ✓ Markets remained well supplied with commissioning of new capacities and low demand in key markets ✓ Product price decreased by 10-19%, while Naphtha price decreased by 11% $/MT $/MT 340 367 482 292 281 342 308 300 316 0 250 500 HDPE-Naphtha PP-Naphtha PVC-Naphtha/EDC 4QFY23 3QFY24 4QFY24 Polymer Deltas – 4Q FY24 362 360 474 333 315 373 0 250 500 HDPE-Naphtha PP-Naphtha PVC-Naphtha/EDC FY 23 FY 24 Polymer Deltas – FY24 49 Source : Platts, RIL internal estimates
  • 50. Polyester Chain Delta 50 Subdued Polyester chain delta amid weak downstream demand 1. QoQ polyester chain delta stable ✓ MEG delta improved due to higher freights amid Red Sea crisis and Panama Canal restrictions ✓ PX deltas lower with firm feedstock prices and surplus availability ✓ Weaker PSF & PFY deltas with subdued global demand 2. FY24 polyester chain delta down 6% ✓ Improvement in PX delta led by tight supplies ▪ Integrated producers continue to optimize production based on PX vs gasoline economics ✓ PTA margins impacted due to capacity expansion in China $/MT 517 488 486 0 150 300 450 600 4QFY23 3QFY24 4QFY24 Polyester Chain Delta 4Q FY24 550 518 0 150 300 450 600 FY23 FY24 Polyester Chain Delta FY24 $/MT 50 Source : Platts, RIL internal estimates
  • 51. Gasoil Cracks – 4Q FY24 51 Gasoil cracks moderated due to lower demand and elevated supply 1. Global gasoil demand increased by ~0.26 mb/d YoY to 28.3 mb/d ✓ Demand increase in Asia Pacific ( 0.2 mb/d), partly offset by decrease in Europe ( 0.1 mb/d) 2. QoQ and YoY Gasoil cracks moderated from highs but remained healthy ✓ Seasonally weak demand, supply from new refineries as well as from those returning from maintenance ✓ Resilient Russian diesel exports weighed on the cracks ✓ Global gasoil drawdown Source: Platts, Energy Aspects 28.2 24.5 23.1 535.1 540.9 537.2 500 530 0 5 10 15 20 25 30 4Q FY23 3Q FY24 4Q FY24 Mn bbls $/bbl Gasoil (10 ppm) Gasoil Cracks Global Diesel Inventories (R.H.S)
  • 52. Jet/Kero Cracks – 4Q FY24 52 Jet/Kero cracks continue to remain at healthy levels with strong aviation sector demand Source: Platts, Energy Aspects 1. YoY Global Jet/kero demand increased by 0.7 mb/d YoY to 7.6 mb/d ✓ Asia Pacific ( 0.4 mb/d), Europe ( 0.1 mb/d) 2. QoQ Jet/Kero cracks moderated with healthy Chinese exports and seasonally lower demand 3. YoY Jet/Kero cracks declined from elevated levels in the previous year ✓ Increase in inventory weighed on cracks 26 23.6 21.2 101.0 112.7 116.7 95 105 115 0 5 10 15 20 25 30 4Q FY23 3Q FY24 4Q FY24 Mn. bbls $/bbl Jet/Kero ATF/Kero Cracks Global Jet Inventory (RHS)
  • 53. Gasoline Cracks – 4Q FY24 Strength in gasoline cracks driven by healthy demand from Asia and North America, low inventories Source: Platts, Energy Aspects 1. Global gasoline demand increased ~0.16 mb/d YoY to 26.1 mb/d ✓ North America ( 0.1 mb/d), Europe ( 0.1 mb/d) 2. QoQ Gasoline cracks up sharply ✓ Unplanned refinery outages amid heavy refinery maintenance in US and Asia ✓ Lower inventories coupled with lower exports from China ✓ Anticipated demand spurt during US driving season (May-Sep’24) 3. YoY gasoline cracks remained largely stable 15 7.6 13.3 456.1 464.1 449.3 420 450 0 5 10 15 20 4Q FY23 3Q FY24 4Q FY24 Mn bbls $/bbl Gasoline 92R Cracks Gasoline Cracks Global Gasoline Inventory (RHS) 53
  • 54. Fuel Cracks – FY2023-24 New supply and focus on fundamentals led to moderation in cracks Source: Platts, Energy Aspects 40.7 14.7 32.9 23.0 11.6 21.2 0 5 10 15 20 25 30 35 40 45 Gasoil Gasoline 92R ATF $/bbl YoY Fuel Cracks FY23 FY24 1. Fuel cracks declined from historic highs, but remained above mid- cycle levels (Dislocation in energy markets in FY23) 2. Gasoil cracks impacted by ✓ Resilient Russian supplies despite sanctions ✓ Lower industrial activities, higher supplies from new refineries 3. Gasoline cracks declined due to increased supply from new refineries ✓ Lower Chinese exports with rising demand on China reopening supported cracks 4. ATF cracks moderated in-line with gasoil cracks ✓ Continuing recovery in global air travel kept cracks supported 54
  • 55. O2C Operating Performance Agile feed-mix and product mix optimization to maximize margin capture 55 1. Throughput of primary and secondary units maximized post major M&I activity in previous quarter 2. Advantaged Crude and Ethane sourcing to minimize feedstock cost 3. Domestic fuel sale maximized with improved demand 4. Aromatics component blending optimized to gasoline vs. PX 5. Gasoline netback maximized by capturing arbitrage opportunities in US markets 6. Fuel cost minimized with sustained gasifier operation at higher throughput with minimum LNG sourcing 4Q FY24 3Q FY24 Throughput 19.8 18.7 Transportation fuels 11.3 10.2 Polymers 1.5 1.2 Fibre Intermediates 0.8 0.8 Polyesters 0.6 0.6 Chemicals and others 2.9 3.6 Total 17.2 16.4 Feedstock (Vol in MMT) Production meant for sale
  • 56. O2C Business Dynamics 56 Demand and Margin 1. Global oil demand growth expected at ~1.2 mb/d in 2024 after strong growth of 2.3 mb/d in 2023 2. Domestic demand for fuels and downstream chemical likely to remain strong ✓ Continuing emphasis on infrastructure projects, increased mobility, positive consumer sentiment 3. Gasoline cracks expected to be supported by strong seasonal demand and lower inventory levels 4. Middle distillates likely to remain firm with supply disruptions, refinery vulnerability in conflict zones 5. Downstream chemical margin expected to recover gradually with slowing pace of capacity addition Source: IEA, Platts. Geopolitics, incremental supplies, production cuts to influence energy and commodity prices Challenges / Volatility 1. OPEC+ members extending voluntary production cuts and geopolitical tensions in Middle East and Russia/Ukraine to keep oil price higher ✓ Attacks on energy infrastructure may result in loss of refining capacity in Russia, prompting further crude oil output cuts 2. Geopolitics impacting trade routes leading to higher voyage time, bunker consumption and freight rates 3. New refineries starting up in China, Middle East and West Africa pose a challenge with incremental product supply outpacing demand in major markets
  • 58. Summary 58 1. Record operating performance demonstrates robust strategy and strong execution ✓ EBITDA nearly doubled over 5-year period; Consumer business EBITDA up ~4x in the same period 2. Strong visibility of continuing growth trajectory and reduced volatility with dynamic business portfolio 3. Energy businesses ✓ Next phase of O2C growth to be led by India centric capacity expansion, customer centricity and circularity ✓ Green energy investments into integrated manufacturing ecosystem and RTC power to deliver lower and predictable energy cost and new revenue streams ✓ KG D6 to provide valuable transition fuel for the economy 4. Retail and Jio – Unparalleled access to Indian consumers with multiple growth drivers ✓ Jio – Executing identified strategies for Individuals, Homes, Enterprise and Digital Platforms ✓ Retail – Expanding omni-channel offerings, strengthening logistics, product development and premiumization 5. Robust balance sheet, prudent capital allocation and risk management framework underpin future growth