The country’s most valuable company Reliance Industries Limited (RIL) will release its second quarter results today, October 30. The company’s profit is expected to remain strong on the basis of increase in oil refining margins, increase in Jio users and ARPU. Bloomberg Estimate: Profit expected to be ₹ 21,368 crore According to Bloomberg Consensus Estimates, Reliance Industries may register a consolidated net profit of ₹ 21,368 crore in the September quarter. This is higher than ₹20,946 crore in the previous quarter (April-June), though slightly lower than ₹22,092 crore in the same quarter last year. According to analysts, oil-to-chemicals (O2C) business will be the main source of earnings, while digital services i.e. Jio will support growth. According to brokerage house estimates by Prabhudas Lilladher, Reliance’s consolidated EBITDA may rise 3.4% quarter-on-quarter (QoQ) to ₹49,140 crore. Kotak Securities has estimated 15% year-on-year (YoY) growth in consolidated EBITDA, while Nuvama has predicted 17% growth. O2C Business: Support from refining margins. The company’s refining margins remain strong due to limited supply of products globally and tensions in Gulf countries. According to Prabhudas Lilladher, crude prices surged in September amid US-Iran tensions, with Brent crude averaging $91.4 per barrel in Q2. Refining cracks of diesel and aviation turbine fuel (ATF) remained at high levels. Kotak Securities estimates that O2C EBITDA could grow by 47% year-on-year. The company’s SEZ refinery will have a major contribution in this, which is exempted from windfall tax. Additionally, cheaper ethane-based petrochemical feedstock from the US and rupee weakness will also support margins. According to Nuvama, O2C EBITDA could see a 38% year-on-year increase, although increased freight charges and operational adjustments could impact this slightly. Reliance Jio: Keeping an eye on ARPU and users growth, Reliance Jio’s earnings are expected to continue to grow. Reliance Retail: Revenue will increase, but pressure on margins. Retail segment is expected to see stable operating earnings… Oil and Gas Business: There is a possibility of being under pressure. Due to decrease in production, the performance of upstream oil and gas business may remain sluggish. Kotak Securities has estimated a 7.2% decline (YoY) in EBITDA for this segment and Nuvama has estimated a 6% decline (YoY). 5 important triggers for the future: Apart from the results, investors will keep an eye on these 5 things… What is ARPU? ARPU means ‘Average Revenue Per User’. This is a key measure of telecom companies, which shows how much money the company is making per customer per month on average. What are refining cracks? The gross margin earned by refining crude oil and making products like petrol, diesel or ATF is called refining crack spread. Also read this news… Mukesh Ambani became emotional on Anant’s speech: Was present with family at the event of Jio share listing; The shares of Jio Platforms, which has become the second largest company in the country, are listed at ₹ 1,358, which is 21% more than its issue price of ₹ 1,119. On the occasion of listing, Reliance Industries Chairman Mukesh Ambani became emotional when his son Anant told the success story of Jio. Read the full news…
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Reliance’s September quarter results will come today: Company’s profit may be ₹ 21,000 crore, earnings will increase from refining and Jio.
