Puja Tayal
Updated on: October 17, 2024 7:41 am GMT
Reliance Industries Ltd. (RIL), one of India’s largest corporations, is set to announce its financial results for the quarter ending September 30, 2024, with an important board meeting scheduled on October 14. Investors and analysts are keenly awaiting these results, particularly after the company reported a 5% drop in consolidated net profit for the previous quarter.
The company disclosed in an exchange filing that it would review and approve both standalone and consolidated unaudited financial results during this meeting. Following the meeting, RIL will also host a presentation to analysts and media, providing deeper insights into its financial performance.
Q1 Performance and Expectations for Q2
In the first quarter of FY2024, Reliance saw its consolidated net profit decline to ₹15,138 crore, down from ₹16,011 crore during the same period last year. This result was below analysts’ projections of approximately ₹16,341 crore, despite the operating revenue rising by 12% year-on-year to ₹2.36 lakh crore.
Key details from the previous quarter include:
- Increase in Revenue: Driven by the O2C (Oil to Chemicals) segment, which benefitted from higher oil prices and increased product demand.
- Consumer Business Growth: The continuous expansion of consumer-based services also contributed positively to revenue.
- Consolidated EBITDA: Grew by 2% year-on-year, reaching ₹42,748 crore, although EBITDA margins slipped to 16.6%.
With mixed signals during the last quarter, analysts are concerned that the O2C business could weigh on RIL’s financial results again in Q2. It will be crucial to see how the company copes with these challenges in its upcoming announcements.
Market Performance
Over the past month, shares of Reliance Industries have shown fluctuations in value. As of October 8, the stock rose by 2%, closing at ₹2,796.05 on the Bombay Stock Exchange (BSE). The company’s stock reached a 52-week high of ₹3,217.90 on July 8, 2024, and a low of ₹2,221.05 on October 26, 2024. Despite a 4.45% drop in the past month, the stock has gained 8% year-to-date.
Market sentiment fluctuates, reflecting investor caution amid ongoing economic trends and potential impacts from global oil prices. Many market watchers are eager to see if RIL can regain momentum following its recent performance.
Analyst Outlook
Analysts are keenly observing the upcoming results, particularly for indications of recovery or continued decline in profit margins related to the O2C segment. Some are hopeful that the company’s diversification efforts, especially in the tech and consumer sectors, could offset risks from the cyclical nature of oil markets.
Analyst comments on RIL’s outlook highlight several unwritten challenges and opportunities:
- Global Oil Prices: How fluctuations will impact revenue.
- Consumer Business Strategy: Continued focus on e-commerce and telecom.
- Technological Investments: Future growth prospects from investments in digital services.
As the board meeting approaches, Reliance’s ability to navigate these challenges will be a point of discussion among market participants.
RIL is at an important point as it gets ready to share its Q2 results. Investors are paying close attention to see how the company will handle changes in the market and keep its various business operations steady. With many new things happening in the market every day, this announcement could influence trading and investment choices in the future.
