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Reliance Industries - First Indian Company To Achieve Benchmark Rs 1 Lakh Crore Pre-tax Profit

• By  Textile Excellence
• April 23, 2024

Reliance Industries Ltd (RIL) has announced their financial results for FY 2023-24 yesterday. RIL’s Gross revenue for fiscal on a consolidated level crossed Rs 10 lakh crore (US$ 119.9 billion), up 2.6% year-on-year, backed by continued growth in consumer businesses and upstream business. The company also became the first Indian company to cross the Rs 1 lakh crore mark in annual pre-tax profit while net profit for the year rose by 7 percent to Rs 79,020 crore (US$ 9.5 billion) from a year earlier.

Reliance has significant presence in the textile sector through polyester raw material, fiber and yarn business as well as fashion retail business.

On year to year basis, company’s domestic polyester demand improved by 4%. PFY demand witnessed an increase of 2% while PSF demand dwindled by 2% due to weakness in downstream demand from the spinning segment. On the other hand, PET chips demand grew by 13% with healthy demand from beverage segment.

However, polyester chain delta declined 6% compared to previous year due to weaker PTA and Polyester product margin which was marginally offset by improvement in PX and MEG delta. Polyester chain margin was US$ 518/MT during FY 2023-24 as against US$ 550/MT in FY 2022-23

Reliance Retail delivered yet another resilient performance with strong revenue and profit growth for the fiscal. The business registered gross revenue of Rs 3.06 lakh crore for FY 2023-24 which is a growth of 17.8% over last year. Annual profit of the retail arm stood at Rs 11,101 crore with total store count of 18,836 with an area of 79.1 million Sq. ft. at FY 2023-24 end. Reliance Retail added 1,840 stores with gross area of 15.6 million Sq ft. in the fiscal.

The Fashion and Lifestyle business of Reliance Retail consolidated its leadership position further as it capitalized on festivals and seasonal winter wear. Its premium brands segment continued to lead with widest portfolio of brands that grew 20% over last year. Ajio Luxe delivered steady performance during the period with options growing by 44% year-on-year.

"Reliance Retail continues to deliver steady performance led by growth across consumption baskets. We continue to invest and innovate across formats and products to improve our customer value proposition and serve evolving consumer needs," said Isha Ambani, Executive Director, Reliance Retail.

Reliance Retail continues to deliver steady performance led by growth across consumption baskets. We continue to invest and innovate across formats and products to improve our customer value proposition and serve evolving consumer needs,"