Barring refinery, all of the Reliance subsidiaries, including retails and telecom, may have witnessed an improved business during the July-September quarter (Q2) because of the easing of nationwide lockdown.
UBS Global Research in a report said, “Overall, we estimate RIL’s minority adjustment in consolidated PAT (profit after tax) to improve 4% quarter-on-quarter to 86 billion rupees. RIL is scheduled to report its September quarter earnings later today.
Recently, Mukesh Ambani was drawn to a legal battle by Amazon.com Inc due to his plan of buying Future Group stakes. It is being assumed that Reliance’s retail business, grocery, both online and offline, did better than fashion and apparel.
“We estimate retails revenues will increase 12% quarter-to-quarter and earnings before interest, tax, depreciation and amortization margins to be 4.2%, leading to overall Ebit growth of 51% qoq” Bofa Securities said in a research report.
Reliance JIO 4G subscribers may help their telecommunication subsidiary to register higher revenues. UBS report said, “We expect 14 million net subscribers’ additions accompanied by ‘average revenue per user’ improving quarter-to-quarter to rupees 145 per month.”
Earlier this week, Bharti Airtel Ltd and Vodafone Idea Ltd announced their Q2 earnings. They have reported a rise in their average revenue per user.
In the second quarter, Reliance industries suffered a decline of 4% quarter-to-quarter in their refinery subsidiary. On this, Bofa securities commented, “This is largely led by a gradual recovery, a planned shutdown and a GRM (gross refining margin) of $6.2 vs $6.3 in Q1.