Reliance Industries Limited (RIL), the country’s most valuable company, will announce its second-quarter results today, 30 October. The company’s profit is expected to remain strong, driven by a rise in oil-refining margins and growth in Jio’s user base and ARPU. Bloomberg estimate: Profit expected to stand at ₹21,368 crore According to Bloomberg consensus estimates, Reliance Industries may report a consolidated net profit of ₹21,368 crore for the September quarter. This is higher than the ₹20,946 crore reported in the previous quarter (April-June), although slightly lower than the ₹22,092 crore reported in the same quarter last year. According to analysts, the oil-to-chemicals (O2C) business will remain the main source of earnings, while digital services, namely Jio, will support growth. Brokerage Houses’ Estimates According to Prabhudas Lilladher, Reliance’s consolidated EBITDA may rise 3.4% quarter-on-quarter (QoQ) to ₹49,140 crore. Kotak Securities has estimated a 15% year-on-year (YoY) increase in consolidated EBITDA, while Nuvama expects 17% growth. O2C Business: Support from Refining Margins The company’s refining margins remain strong due to limited global product supplies and tensions in the Gulf countries. According to Prabhudas Lilladher, crude oil prices rose in September amid tensions between the US and Iran, taking the average Brent crude price to $91.4 per barrel in Q2. Refining cracks for diesel and aviation turbine fuel (ATF) remained at high levels. Kotak Securities estimates that O2C EBITDA could rise 47% year on year. The company’s SEZ refinery, which is exempt from the windfall tax, will make a significant contribution. In addition, cheaper ethane-based petrochemical feedstock from the US and the rupee’s weakness will support margins. According to Nuvama, O2C EBITDA could increase 38% year on year, although higher freight charges and operational adjustments could affect it slightly. Reliance Jio: ARPU and User Growth in Focus Reliance Jio’s earnings are expected to continue their steady growth. Reliance Retail: Revenue to rise, but margins under pressure The retail segment is expected to report stable operating earnings: Oil and gas business: Expected to remain under pressure The upstream oil and gas business may perform sluggishly due to lower production. Kotak Securities has estimated a 7.2% decline in EBITDA for this segment, while Nuvama has projected a 6% year-on-year decline. Five key triggers ahead Besides the results, investors will be watching these five factors… Reliance shares down 26% so far this year Reliance Industries’ shares are trading 0.3% lower at 1,163 ahead of the results. The company’s shares have fallen 2% over the past five days. They are down 3% in one month and 19% in six months. The shares have fallen 26% this year, from 1 January to date. Meanwhile, Reliance shares have declined 22% over the past year. Reliance’s market capitalisation stands at ₹15.74 lakh crore. Reliance is India’s largest private-sector company Reliance is India’s largest private-sector company. It currently operates in hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, advanced materials and composites, renewable energy, digital services and the retail sector. What is ARPU? ARPU stands for ‘Average Revenue Per User’. It is a key metric for telecom companies, indicating how much money a company earns on average from each customer every month. What are refining cracks? The gross margin earned from refining crude oil to produce products such as petrol, diesel and ATF is known as the refining crack spread. Post navigation Noel Tata works 6.5-days in a week:Fond of riding high-speed vehicles – what’s his net worth? India’s extreme poverty falls from 27.1% to 2.6%:World Bank says 49.6 cr people lifted in 12 years; jobs, stagnant wages remain challenges
