Mukesh Ambani-led Reliance Industries made history with its March 2023 quarter numbers. The country’s most valued company reported ₹19,299 crores consolidated net profit for Q4 2023, the highest in history and 19% more than the figure reported in the March 2022 quarter.

It comfortably beat estimates, with brokerages and publications predicting Reliance’s bottom line at ₹16,759.

Big bottom line beat

Reliance Industries reported a subdued topline. Consolidated revenue for the quarter grew just 2% year-on-year to ₹2.16 lakh crore, lower than estimates of ₹2.22 lakh crore. However, the bottom line made up for it, with a 19% increase in the other income helping Reliance’s PBT (Profit Before Tax).

The company, which makes more than 10% of the NIFTY 50 index, reported consolidated earnings before EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) grew 22% YoY to a record ₹41,389 crore.

A strong EBITA aided the company’s margin, coming in at 18.05%. It was better both quarter-on-year and year-on-year; RIL reported a 16.2% net margin in Q3 FY23 and 15.1% in Q4 FY22.

Reliance Retail powers on

Reliance Retail Ventures, led by executive director Isha M Ambani, has been on an aggressive path, and it showed in the results. The company’s consolidated revenue increased over 19% YoY to ₹69,267 crore, a new record. Operating profit for the March 2023 quarter came in at ₹4,914 crores, a whopping 33% YoY growth.

Reliance Retail opened close to 1000 stores and reported a record footfall of 219 million across formats. An ecstatic Isha M Ambani reflected on the company’s performance and said, “Reliance Retail continues on the path of registering industry-leading growth year after year at a scale unmatched in India.”

A tonic for NIFTY?

The NIFTY 50 index has been stuck in a range post the poor Q4 numbers reported by IT majors like Infosys and TCS (Tata Consultancy Services). Reliance’s strong showing might change that, helping the index reach the 18,000 mark. The Mukesh Ambani-led has significant weightage in the country’s frontline index.