RIL net profit falls1.8% to Rs 18,951 cr yoy, revenue up 10.8 % on O2C, consumer biz - Business Guardian
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RIL net profit falls1.8% to Rs 18,951 cr yoy, revenue up 10.8 % on O2C, consumer biz

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Reliance Industries on Monday posted a net profit of Rs 18,951 crore in the March quarter (Q4) of FY24, a 1.8 per cent decrease in its net profit compared to the previous year but revenue at Rs 264,834 crore grew 10.8 per cent year-on-year, supported by double-digit growth in oil to chemical and consumer business. Furthermore, EBITDA saw a yoy growth of 16.1 per cent, reaching Rs 178,677 crore with positive contribution from all key operating segments. The conglomerate also announced an interim dividend Rs 10 per equity share for the financial year ended 31 March, 2024.

On an annual basis, RIL’s gross revenue at Rs 1,000,122 crore (USD 119.9 billion), was up 2.6 per cent yoy, supported by continued growth momentum in consumer businesses and upstream business. Revenue for JPL increased by 11.7 per cent yoy, led by robust subscriber growth of 42.4 million across mobility and homes and benefit of mix improvement in ARPU. Revenue for RRVL grew by 17.8 per cent yoy with strong growth across all consumption baskets, gross area addition of 15.6 million square feet and record footfalls of over a one billion.

Mukesh D. Ambani, Chairman and Managing Director, RIL, attributed “remarkable contribution” of initiatives across RIL’s businesses towards fostering growth of various sectors of the Indian economy with all segments posting robust financial and operating performance. “This has helped the company achieve multiple milestones. 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,” said Ambani.

The March quarter financial results on 22 April show that while JIO platforms (JPL) EBITDA increased 12.8 per cent with higher revenue and margin improvement, Reliance retail (RRVL) EBITDA increased sharply by 28.5 per cent with margin expansion of 60 bps to 8.4 per cent. Oil and gas EBITDA increased sharply by 48.6 per cent, led by higher gas and condensate production with the commissioning of the MJ field during the year. Revenue for O2C decreased by 5.0 per cent primarily on account of lower product price realization following a 13.5 per cent yoy decline in average Brent crude oil prices. This was partially offset by higher volumes. Revenue from oil and gas segment increased significantly by 48.0 per cent mainly on account of higher volumes from KG D6 block (which was up 56.8 per cent, despite lower gas price realization from KG D6 field.

Strong demand for fuels globally, and limited flexibility in refining system worldwide, supported margins and profitability of the O2C segment. Downstream chemical industry experienced increasingly challenging market conditions through the year but maintaining leading product positions and feedstock flexibility through the operating model that prioritizes cost management, we delivered a resilient performance. The KG-D6 block has achieved 30 MMSCMD of production and now accounts for 30 per cent of India’s domestic gas production.

Finance costs of RIL increased by 18.1 per cent yoy to ₹ 23,118 crore (USD 2.8 billion) due to higher liability balances and higher market interest rates. Tax Expenses increased by 26.2 per cent yoy to ₹ 25,707 crore on account of utilization of tax credits in the previous financial year. Profit after tax increased by 7.3 per cent yoy to ₹ 79,020 crore.

Performance of the digital services segment has been boosted by accelerated expansion of the subscriber base, supported by both mobility and fixed wireless services. With over 108 million True 5G customers, Jio truly leads the 5G transformation in India.

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X announces Grok rolling to Premium+ subscribers

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In a groundbreaking announcement, social media platform X revealed that Elon Musk’s artificial intelligence venture, xAI, is set to launch Grok exclusively for Premium Plus subscribers in the United States next week. Users can access Grok through the side menu on web, iOS, and Android platforms, marking a significant step towards integrating advanced AI capabilities into the social media experience.

In a post on X, the company declared, “Ok, buckle up, everyone. Access to @ grok is now rolling out to Premium+ subscribers in the US over the next week. The longer you’ve been a subscriber, the sooner you can read. You can find Grok in the side menu on web, iOS, and Android (the app must be up-to-date). On iOS and Android, you can add it to your bottom menu for easy access. Don’t forget your towel!”

This eagerly anticipated release follows an earlier announcement from xAI on November 4, wherein the artificial intelligence venture introduced Grok as an AI modeled after the iconic “Hitchhiker’s Guide to the Galaxy.” The blog post highlighted Grok’s unique ability to answer a wide range of questions and even suggest inquiries, all delivered with a touch of humor and a rebellious streak. The post humorously advised users not to engage with Grok if they dislike humor.

The key advantage of Grok, as outlined in the blog post, is its real-time knowledge of the world through the X platform. The AI is designed to tackle “spicy questions” rejected by other AI systems, showcasing its versatility and advanced capabilities. xAI emphasized that Grok is still in the early beta stage but anticipates rapid improvement with user feedback.

Elon Musk, the visionary behind xAI, took to X to share insights into Grok’s design and functionality. Musk stated, “xAI’s Grok system is designed to have a little humor in its responses.” He further highlighted Grok’s real-time access to information via the X platform, underscoring its massive advantage over other AI models. Musk also playfully mentioned Grok’s affinity for sarcasm, expressing amusement at the system’s unique personality. “I have no idea who could have guided it this way,” Musk added, adding an element of mystery to Grok’s development.

In a recent development reported by Fox Business, xAI disclosed its intention to secure up to one billion dollars in funding. According to a filing with the Securities and Exchange Commission, X.AI Corp. (dba xAI) outlined plans for a USD 1 billion equity offering, with over USD 134 million already successfully raised. The filing revealed that the company had entered into a binding agreement for the sale and purchase of the remaining USD 865 million.

The funding initiative reflects the growing importance and potential of xAI’s projects, particularly the development and deployment of advanced AI systems like Grok. As xAI seeks substantial financial backing, it signals a strategic move to further enhance and expand the capabilities of its artificial intelligence ventures.

The introduction of Grok on social media platform X represents a significant milestone in the evolution of AI-powered assistance for users. With its unique blend of humor, rebellious personality, and real-time access to information, Grok promises to revolutionize the way users interact with AI. As the system enters the hands of Premium Plus subscribers, the coming weeks will likely witness an influx of user feedback, contributing to the continuous improvement of Grok’s capabilities.

In conclusion, the unveiling of Grok by Elon Musk’s xAI on social media platform X marks a pivotal moment in the integration of advanced AI into everyday online interactions. With its distinctive personality and real-time knowledge access, Grok is poised to redefine the user experience on X, offering a glimpse into the future of AI-driven assistance. As xAI seeks substantial funding to support its ambitious projects, the success of Grok and similar initiatives could reshape the landscape of artificial intelligence and its applications in the social media sphere.

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Air India’s Airbus A350 marks International debut

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Air India has recently launched flights on the highly sought-after Delhi-Dubai route, marking the international debut of its newly acquired Airbus A350-900 aircraft. With this milestone, Air India becomes the sole carrier to operate the A350 between India and Dubai, signaling a significant advancement in its fleet capabilities and service offerings.

The commencement of flights was accompanied by pre-departure ceremonies at both Delhi and Dubai airports, where guests were treated to memorable experiences and presented with A350 memorabilia. According to the airline’s statement, the A350-900 aircraft boasts a three-class cabin configuration, accommodating a total of 316 seats. This includes 28 private Business suites, 24 Premium Economy seats, and 264 Economy seats, all equipped with state-of-the-art technology and entertainment systems to ensure a comfortable and enjoyable journey for passengers.

The Airbus A350-900 is renowned for its long-range capabilities, capable of accommodating 300-350 passengers in a three-class configuration with a range of 15,000 kilometers. Powered by two Trent XWB turbofan engines, the A350 benefits from a close collaboration between Airbus and Rolls-Royce, leveraging cutting-edge technology and materials to deliver optimal performance and efficiency. With over 70 million hours of in-service experience across various Trent engine versions, the Trent XWB engine ensures reliability and superior operational efficiency.

Air India’s strategic move to introduce the A350-900 on the Delhi-Dubai route underscores its commitment to offering passengers a premium travel experience and maintaining a competitive edge in the market. Currently operating a total of 72 flights per week to Dubai from five Indian cities, including 32 flights originating from Delhi alone, Air India has established a strong presence in the region.

The induction of the A350-900 into Air India’s fleet marks a significant milestone in the airline’s ambitious expansion plans. With a historic order for 470 aircraft from both Airbus and Boeing, to be delivered over the next five years, Air India is poised for substantial growth and modernization. The introduction of the A350 is part of this larger fleet renewal strategy, which includes a total of 20 Airbus A350-900 aircraft.

The A350-900’s nonstop flight time of 16-17 hours and exceptional fuel efficiency, burning 25 percent less fuel than its predecessors, position it as an ideal choice for long-haul travel. With its advanced technology and superior performance capabilities, the A350-900 is expected to enhance Air India’s competitiveness in the market and elevate its standing as a preferred choice for travelers.

Looking ahead, Air India aims to leverage the A350-900’s capabilities to expand its route network, enhance connectivity, and deliver unparalleled service excellence to passengers. With its modern fleet, commitment to innovation, and focus on customer satisfaction, Air India is poised to solidify its position as a leading player in the global aviation industry.

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Microsoft invests in OpenAI over concerns of Google’s lead

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An internal email disclosed on Tuesday as part of the Justice Department’s antitrust case against Google revealed that Microsoft Corp. was driven to invest significantly in and collaborate with OpenAI due to a perceived lagging behind Google. The Windows software maker’s chief technology officer, Kevin Scott, was “very, very worried” when he looked at the AI model-training capability gap between Alphabet Inc.’s efforts and Microsoft’s, he wrote in a 2019 message to Chief Executive Officer Satya Nadella and co-founder Bill Gates.

The exchange shows how the company’s top executives privately acknowledged they lacked the infrastructure and development speed to catch up to the likes of OpenAI and Google’s DeepMind. The email was released late Tuesday after media organizations including the New York Times and Bloomberg intervened in the landmark antitrust suit to push for greater public access. The US Justice Department has argued that OpenAI’s ChatGPT and other innovations may have been released years ago if Google hadn’t monopolised the search market. Scott, who also serves as executive vice president of artificial intelligence at Microsoft, observed that Google’s search product had improved on competitive metrics because of the Alphabet company’s advancements in AI.

The Microsoft executive wrote that he made a mistake by dismissing some of the earlier AI efforts of its competitors. “We are multiple years behind the competition in terms of machine learning scale,” Scott said in the email. Significant portions of the message, titled ‘Thoughts on OpenAI,’ remain redacted.

Nadella endorsed Scott’s email, forwarding it to Chief Financial Officer Amy Hood and saying it explains “why I want us to do this.” Microsoft has poured more than $13 billion into its partnership and backing of OpenAI, tapping the startup’s generative-AI technology to enhance its Bing search service, Edge internet browser and, most notably, integrate an AI Copilot service into Windows. Nadella has elevated the AI race to a priority at the company, also recruitrial last fall. “As it relates to search, we wanted to sort of ensure that we could think about innovation in the search category with” large language models like those developed by OpenAI, Nadella said.

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India-Made Micron Chips to Debut Globally in 2025

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The first India-made semiconductor chips will roll out from Micron Technology’s packaging unit in Gujarat’s Sanand in the first half of 2025.

The initial batch of India-made semi-conductor chips is slated to emerge from Micron Technology’s packaging unit in Sanand, Gujarat, during the first half of 2025, as conveyed by Micron India Managing Director Anand Ramamoorthy in an interview with Mint. Ramamoorthy expressed, “We anticipate the early release of products next year, within the first half, which signifies a commendable turnaround considering our announcement of this entire initiative in the midst of last year.”

Highlighting the export orientation, Ramamoorthy indicated that a significant portion of the chips manufactured in Sanand will be destined for international markets, potentially positioning the unit as a pivotal player in the global semiconductor arena. Ramamoorthy said the chips would be used for data centres, smartphones, notebooks, and Internet of Things (IoT) devices. However, the specific allocation of the chips will be determined closer to the final production stage, based on factors such as demand dynamics, pricing considerations, and customer requirements. Micron is also eyeing new opportunities in emerging sectors such as two-wheeler electric vehicles and government contracts unique to the Indian market.

Rama Moorthy hinted at potential partnerships with Tata Electronics’ semiconductor fabrication units in Assam and Gujarat, citing existing collaborations with Tata Group companies and the possibility of expanding product lines into their factories. Micron is engaged in bringing its semiconductor supply chain to India, with key suppliers such as Simmtech beginning to set up operations in Gujarat. Ramamoorthy said the company is collaborating with the government and suppliers to leverage opportunities presented by India’s semiconductor ecosystem. Under the government’s $10 billion financial incentive scheme for semiconductor fabrication and assembly, Micron is establishing an assembly, testing, monitoring, and packaging (ATMP) plant in India.

The project, supported by significant financial backing from central and state governments, is poised to generate thousands of direct and indirect employment opportunities, further bolstering India’s semiconductor landscape. Earlier this week, Reported that Micron Technology may receive a $6.1 billion in grants from the United States’ Commerce Department to bring semiconductor production back to the US. The company has reportedly pledged to open up to four factories in the New York state, and one in Idaho, however, has cited they would require a combination of Chips grants, investment tax credits and local incentives to make up cost differences between the US and overseas units. The company has projects in China and Japan, along with India.

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India & Australia join forces, boosting women leaders in industry

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The Confederation of Indian Industry (CII) and the Business Council of Australia (BCA) have joined forces to launch the India-Australia Women’s Leadership Forum, aiming to bolster gender diversity and empowerment in the corporate sphere. The memorandum of understanding (MOU) signed between CII and BCA underscores their commitment to fostering women leadership in the industry and strengthening bilateral ties between India and Australia. The official announcement of the India-Australia Women’s Leadership Forum was made during a launch event held in New Delhi, India.

The forum will be co-chaired by Viji Murugesan, Head of Scaleup Business Transformation at Tata Consultancy Services, and Ravneet Pawha, Asia CEO of Deakin University. As partners in the India-Australia CEO Forum, CII and BCA aim to elevate the participation of women leaders in the partnership, facilitating connections, sharing insights, and providing a platform for further engagement between companies and leaders from both nations. Parimita Tripathi, Joint Secretary – Oceania, Ministry of External Affairs, Government of India, highlighted the strategic importance of the forum in strengthening economic and social relations between India and Australia. Tripathi emphasized the role of the forum in deepening people-to-people ties and enhancing the economic and social relationship between the two countries.

Chandrajit Banerjee, Director General of the Confederation of Indian Industry, stressed the significance of supporting women leaders in the India-Australia relationship. He emphasized CII’s commitment to promoting gender equity and equality through initiatives like the India-Australia Women’s Leadership Forum, aimed at harnessing the strength of women in bilateral relations. Bran Black, Chief Executive of the Business Council, underscored the importance of gender equality within the Australia-India CEO Forum and the recommendations it provides to both governments. He expressed BCA’s commitment to supporting the establishment of the Australia-India Women’s Leadership Forum, stating that encouraging women into leadership positions is crucial for enhancing the productivity of both economies.

The establishment of the India-Australia Women’s Leadership Forum comes at a time when the India-Australia Economic Cooperation and Trade Agreement (ECTA) has provided momentum to the economic partnership between the two countries. Indian and Australian companies are leveraging this trade agreement to trade at reduced tariff rates, emphasizing the need to prioritize gender equality to enhance economic productivity. Recognizing the critical role of women in this economic partnership, CII has undertaken an active agenda to promote India-Australia economic ties.

The establishment of the India-Australia Women’s Leadership Forum aims to create an ecosystem that promotes the economic contribution of women to the India-Australia corridor. The forum’s objective is to bring together women leaders from both countries to strengthen connections, share insights, and provide mentorship to future women leaders. Through workshops, mentorship programs, promotion of best practices, and participation in policy-making exercises, the forum members will strategize to promote women’s leadership across the corridor.

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Maruti Suzuki leads April sales with 1.68 lakh units, Hyundai exports up 58.8%

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Hyundai Motor India registered total sales of 63701 units in April 2024, a 9.5 per cent growth year-on-year with domestic sales at 50201 units, driven by SUVs which contributed 67 per cent of HMI domestic sales. Exports at 13,500 units grew 58.8 per cent yoy. Tarun Garg, COO, Hyundai Motor India points out that April 2024 marked fourth consecutive month of 50,000 plus units in domestic sales during calendar year 2024 driven by models like the CRETA, VENUE and EXTER. Honda Cars India (HCIL), registered total sales of 10,867 units in April 2024 as compared to 7,676 units in the same month last year. The company registered 4,351 units in domestic sales and 6,516 units in exports in the month of April’24.

Kunal Behl, Vice President, Marketing & Sales points out that the planned production volumes in April were lower due to switchover of Elevate and City production to six-airbag standard variants. “The dispatches were aligned accordingly. On the other hand, export of Elevate continues to significantly boost HCIL export volume which grew by 175 per cent over same period last year,” says Behl. The company had registered 5,313 units in domestic sales and exported 2,363 units in April’ 23. Maruti Suzuki India sold 1,68,089 units in April 2024, including domestic sales of 140,448 passenger vehicles and light commercial vehicles, sales to other OEM of 5,481 units and exports of 22,160 units.

The total sales in April 2024 was an increase of 4.7 per cent compared with the year-ago period. The company’s exports grew 30.6 per cent. as against 1,39,519 units in the corresponding period a year ago. The car maker sold 1,39,519 units domestically in the corresponding period a year ago, showing 0.7 per cent growth in April 2024. The company also announced the commencement of pre-bookings for the highly anticipated 4th generation Epic New Swift for INR 11,000. Partho Banerjee, Senior Executive Officer, Marketing & Sales points out that the Swift has been an iconic brand for Maruti Suzuki, with 29 lakh strong customer base. “The Epic New Swift stays true to its much-loved sporty DNA, while balancing new-age expectations of environment friendliness with low emissions.

The next-generation Swift is all set to create new benchmarks in the premium hatchback segment,” says Banerjee. Tata Motors Limited sales in the domestic and international market for April 2024 stood at 77,521 vehicles, compared to 69,599 units during April 2023, rising 11.5 per cent year-on-year as compared with 69,599 units in April 2023. The company’s total domestic dispatches rose 12 per cent to 76,399 units last month as against 68,514 units in April 2023. Domestic sale of MH&ICV in April 2024, including trucks and buses, stood at 12,722 units, compared to 8,985 units in April 2023 while total sales for MH&ICV domestic and international business in April 2024, including trucks and buses, stood at 13,218 units compared to 9,515 units in April 2023.

Toyota Kirloskar Motor (TKM) sold 20,494 units in the month of April 2024, representing a yoy growth of 32 per cent, as compared to April 2023, where the company sold 15,510 units. The growth momentum was sustained despite a weeklong maintenance shutdown from April 06-14, 2024, for upkeep of machinery and equipment to sustain operational efficiencies, productivity and safety. In the current month, domestic sales accounted for 18,700 units while exports totalled to 1,794 units during the same month. Chennai based TVS Motor Company registered a growth of 25 per cent with sales increasing from 306,224 units in April 2023 to 383,615 units in April 2024.

Total two-wheelers registered a growth of 27 per cent with sales increasing from 294,786 units in the month of April 2023 to 374,592 units in April 2024. Domestic two-wheeler registered growth of 29 per cent with sales increasing from 232,956 units in April 2023 to 301,449 units in April 2024. Motorcycle registered a growth of 24 per cent with sales increasing from 152,365 units in April 2023 to 188,110 units in April 2024. Scooter registered a growth of 34 per cent with sales increasing from 107,496 units in April 2023 to 144,126 units in April 2024.

The company recorded electric vehicles sales of 17,403 units in April 2024, indicating continued robust demand. Electric vehicle sales last year in April 2023 were at 6,227 units. The Company’s total exports registered a growth of 12 per cent with sales increasing from 71,663 units in April 2023 to 80,508 units in April 2024.

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