Reliance Industries Ltd (RIL), led by billionaire Mukesh Ambani, is set to announce its financial results for the second quarter of fiscal 2024-25 (Q2FY25) on October 14, 2024. Analysts predict the conglomerate will report muted earnings, primarily dragged down by a weaker oil-to-chemicals (O2C) business.
The company is expected to show consolidated revenue growth of 3.3%, with revenue likely to reach ₹2.39 lakh crore, up from ₹2.31 lakh crore in the previous quarter. Net profit and consolidated EBITDA are expected to rise marginally quarter-on-quarter. In August 2024, Reliance’s board had approved a bonus share issue in the ratio of 1:1 during its annual general meeting (AGM).
Telecom and Retail Segments Drive Performance
Reliance’s telecom business is expected to show strong performance, with a 2.8% growth in EBITDA. Antique Stock Broking forecasts a 10.5% QoQ growth in telecom EBITDA, largely driven by a 6% growth in average revenue per user (ARPU). Despite a flat subscriber base due to SIM consolidation, Jio is expected to perform well, with a 0.6% increase in subscribers and a 7% QoQ rise in ARPU.
In the digital services segment, Jio is likely to report a 10% QoQ growth driven by recent tariff hikes. According to Nuvama Institutional Equities, Jio’s EBITDA may increase by 13% YoY and 5% QoQ, offsetting a slight moderation in subscriber numbers.
Meanwhile, the retail segment is expected to remain resilient, despite softer performance in some other areas. The overall profitability is likely to hold steady, supported by ongoing consumer demand.
Mukesh Ambani’s Vision at AGM
At the 47th AGM, Mukesh Ambani emphasized that Reliance is focused on long-term wealth creation, not short-term profits. He reiterated the company’s commitment to delivering high-quality products and services that enhance the lives of Indian consumers and contribute to the country’s economic growth.
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