Reliance Q2 Outlook: Jio Set to Gain from Tariff Hikes, Bonus Issue Record Date Draws Attention
Nifty 50 heavyweight Reliance Industries Ltd. (RIL) will be reporting its results for the July-September period after market hours on Monday, October 14.
While the focus will remain on the performance of key businesses and the management commentary on the road ahead, investors will also be watching out whether the company announces the record date for its 1:1 bonus issue declared earlier.
A CNBC-TV18 poll expects the Mukesh Ambani-led oil-to-telecom-to-retail conglomerate to report a drop in its revenue on a year-on-year and consolidated basis, while an improvement is expected when the numbers are compared to the June quarter.
On a sequential basis, Reliance Industries’ Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) is likely to improve by 2%, while its margins may expand by 80 basis points compared to the June quarter, according to the CNBC-TV18 poll. The company’s net profit is also likely to improve sequentially.
Apart from the sequential improvement, the company is likely to see weakness in its retail and O2C business. However, Reliance Jio is likely to benefit from the recent tariff hikes taken.
Singapore GRM’s during the quarter remained weak at $3.6 per barrel for the September quarter as compared to $3.5 per barrel in the June quarter.
Brokerage firm Jefferies expects Jio’s EBITDA to rise by 9% from the June quarter on flat subscriber growth and a 7% rise in its Average Revenue Per User (ARPU).
The brokerage expects RIL’s retail EBITDA to increase by 5% sequentially as growth remains soft, while its O2C EBITDA may decline by 1% sequentially on a weaker refining and petchem margins.
Shares of Reliance Industries have been underperformers in the last one month leading up to its results. The stock has declined 7% in the last one month but is up 7% so far in 2024.
Oil and Natural Gas Corporation (ONGC) is in talks with Gujarat State Petroleum Corporation (GSPC) for acquiring a stake in Read more
