Mukesh Ambani during the company's AGM said that retail business is expected to grow at least three times in next 3-5 years, aimed to be among top 10 retailers in the world. Image: ReutersRIL Q2FY22 earnings LIVE: Mukesh Ambani’s Reliance Industries Ltd is all set to announce its July-September quarter earnings later in the day. Analysts at CNBC TV18 see up to 5.4 per cent rise in profit after tax (PAT) to Rs 12,946 crore from Rs 12,273 crore, sequentially. Similarly, a 12.8 per cent jump in consolidated revenue to Rs 1.58 lakh crore from Rs 1.4 lakh crore. HDFC Securities estimates RIL’s consolidated EBITDA to increase by 14 per cent, sequentially, to Rs 26,600 crore. On the stock performance front, RIL share price hit an all-time high of Rs 2,745 on 19 October 2021 and has soared 42 per cent in the last six months. Reliance Industries has made investments in multiple green energy companies globally. The oil-to-telecom conglomerate acquired stake in four companies globally — REC Solar, Ambri, NexWafe, and S&W Solar, between August-October, this year. Moreover, RIL ‘s Reliance Retail Venture Ltd tied up to bring 7-Eleven stores to India, bought 40% stake in Manish Malhotra Fashions, and 52% stake in Ritu Kumar’s company.
Highlights
Reliance Retail Ventures Ltd (RRVL) has acquired a 52 per cent stake in veteran couturier Ritu Kumar’s firm Ritika Pvt Ltd for an undisclosed amount. “RRVL’s majority equity acquisition in Ritika Pvt Ltd included completely acquiring Everstone’s 35 per cent stake in the company,” a joint statement said.
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India’s largest telecom operator Reliance Jio gained 6.49 lakh mobile users in August leading the subscriber addition tally. Jio continued to outpace rivals in subscriber gains, adding 6.49 lakh wireless users in August, as its mobile base swelled to 44.38 crore.
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Reliance Industries is expected to post decent Q2 earnings, on the back of consistent growth in its retail business and JIO. Recovery in refining margins could further add to its finances. Reliance stock has gained over 30% since the past quarter, clearly showing investor confidence and interest in the stock. Long-term prospects continue to remain positive. Dips can be used for accumulation, from an investment perspective. Aamar Deo Singh, Head Advisory, Angel One
RIL is expected to report YoY and QoQ better earnings on improvement in a) retail segments profitability, b) improvement in refinery margins, offset partially by plausibly QoQ lower ARPUs in Jio Infocom. YES Securities
An improvement in EBIT for the retail or upstream segments will offset the muted Jio performance in Q2. Jio's net subscriber addition of 7-8 million is expected to be sharply lower against the last two-quarter average of 14-15 million, driven by sharply higher churn of lower-rung customers in August-September. Average revenue per user (ARPU), however, grows to around Rs 142 levels, driving a 3 per cent QoQ EBITDA growth for Reliance Jio. Centrum Broking
Nomura expects the refining EBIT to rise to around 53 percent on a sequential basis to Rs 4,600 crore
RIL has laid first steps in setting the new business and we will incorporate its value going forward. It has also added platform companies like Just Dial, Netmeds and Urban Ladder by creating a strong ecosystem of future growth to better compete with leaders like Amazon, Walmart and Tata (post acquisition of Big basket and 1mg). We believe entry into futuristic technology and new platforms will continue to power growth in coming years. Prabhudas Lilladher
Mukesh Ambani-led Reliance Industries Ltd (RIL) reported Apr-Jun quarter FY22 net profit at Rs 12,273 crore, a fall of 7.25 per cent on-year.
Reliance Jio expects a revenue growth of 5.4 per cent to Rs 18,970 crore from Rs 17,994 crore in Q2, while margins and profit are likely to been flat on quarter-on-quarter basis. CNBC TV18
Reliance Industries Ltd (RIL) share price gained over 1% ahead of the Q2 earnings for the current fiscal. The stock rose 1.5% to Rs 2,664 against previous close of Rs 2,623 on BSE.
RIL has seen its stock price rise spectacularly over the last three months (40% in last six months vs 26% for the Nifty 50), driven by optimism on improving OTC margins (both refining and petchem margins have improved steadily in the last 2-3 months), rising production from the new KG series fields (R series/Satellite), recovery in both retail and JIO in line with the steady reopening of the economy, and of course, the grand plans for the renewable energy segment. Centrum Institutional Research
Improving metrics in the OTC space, a sharp recovery in retail, and prospects of higher margins from the digital services segment, a reinvigorated E&P business, and now the added lever of the green energy drives a material 19.5% uptick in target price for RIL. Current valuations of >24x FY23E PER / ~15x EV/EBITDA, however, more than capture the positives(~40% rise in stock in last 6Mths), while underplaying inherent uncertainties and lack of clarity on plans beyond the solar segment in the green energy segment. Centrum Institutional Research
The company had reported a net profit after tax of Rs 13,843 crore in the last quarter. In the short term, the impact on quarterly financials will be limited but the move is clearly in line with the announced plans of the company and positive for the longer-term growth and financials and shareholder returns. It is expected that the company may deliver a strong performance in Q2 also similar to the previous quarter due to recovery in petrochemicals and the retail venture along with sustained growth in the digital services business. As various businesses are returning to normal post-pandemic, domestic demand has sharply recovered across all O2C businesses and is now near pre-Covid level. Taking into account all the factors, it is expected that the net income of the company may increase from 8-10% from the previous quarter. Ravi Singh, VP & Head of Research, Share India Securities
HDFC Securities Institutional Equities expects RIL’s consolidated EBITDA to increase by 14% sequentially to Rs 266 billion. Oil-to-chemicals (O2C) EBITDA/tonne of crude processed is estimated to increase 22% sequentially, owing to improvement in gas & oil cracks by 28 per cent on-year and steady petchem margins. We expect EBITDA to increase by 25 per cent on-year to Rs 24.8 billion from its retail segment. HDFC Securities
Global energy supermajor BP plc on Thursday said it is about to open its first ‘Jio-bp’ branded petrol pump in partnership with Reliance Industries near Mumbai. In 2019, BP had bought a 49 per cent stake in over 1,400 petrol pumps and 31 aviation turbine fuel (ATF) stations owned by Reliance for USD 1 billion.
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Shareholders of Reliance Industries have approved the appointment of Saudi Aramco Chairman Yasir Al-Rumayyan on the company board, with less than 2 per cent of votes cast against the proposal. Disclosing the results of shareholder votes on the appointment, Reliance in a regulatory filing said 98.03 per cent of votes were cast in favour of the resolution to appoint Al-Rumayyan for three years.
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Mukesh Ambani’s Reliance Industries Ltd (RIL) is likely to post strong growth in net profit led by a rise in EBITDA in the July-September quarter of FY22. Analysts expect that Reliance will continue the momentum from the previous quarter into the second quarter of the current fiscal. The oil-to-telecom conglomerate has recently announced several acquisitions through subsidiaries, such as a 100% stake in Norway-based solar cell; panel and polysilicon maker REC Solar Holdings for $771 mn; and 25 million euros (USD29 million) stake in Germany’s NexWafe GmbH.
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