Reliance Industries to announce Q2 results tomorrow: What to expect
Reliance Industries Ltd (RIL) will announce its financial performance for the second quarter of fiscal year (FY) 2024-25 tomorrow. The announcement will be made during a board meeting, where both standalone and consolidated unaudited results will be reviewed and approved. RIL shared this information in a regulatory filing with the stock exchanges.
RIL's bonus share issue and capital increase
During its latest annual general meeting (AGM) in August 2024, RIL's Board of Directors approved a 1:1 bonus share issue. This means that for every fully paid-up equity share of ₹10 held, an additional share of equal value will be issued. The board also approved an increase in authorized share capital from ₹15,000 crore to ₹50,000 crore.
Ambani's vision for RIL and India's economy
At the 47th AGM, Mukesh Ambani stressed that RIL isn't about short-term profit but creating wealth for India. He said, "We are not in the business of pursuing short-term profit and hoarding wealth. We are in the business of creating wealth for India." He added that all of RIL's businesses remain key drivers of the Indian economy.
Market analysts predict muted growth
Market analysts expect a muted growth for RIL in Q2 on account of a weaker oil-to-chemicals (O2C) business. They expect the O2C business' EBITDA to decline by as much as 27% year-on-year (YoY) and 10% quarter-on-quarter (QoQ). However, global brokerage Jefferies anticipates a jump in the oil and gas segment's earnings before interest, tax, depreciation, and amortization (EBITDA). Analysts expect net EBITDA to rise 5% YoY but drop 4% QoQ to ₹4,999 crore.
Digital services and retail segments show resilience
RIL's digital services segment is likely to witness a 10% QoQ growth, driven by tariff hikes. Despite a price hike, Reliance Jio is expected to remain steady with 0.6% QoQ subscriber growth and 7% QoQ ARPU growth. The profitability of the retail segment is also expected to remain resilient amid industry trends.
