Reliance Industries Ltd (RIL) is expected to report strong Q3 FY25 earnings, driven by improvements in its oil-to-chemicals (O2C) and digital services sectors. Retail revenue may dip slightly, but Jio’s ARPU is expected to grow. The growth in subscriber numbers will be an important factor to monitor.
As per news reports, Reliance Industries‘ earnings before interest, tax, depreciation, and amortisation (EBITDA) are expected to benefit from a 10% rise in the O2C segment, a 7% increase in Jio, driven by the full impact of recent tariff hikes, and an 8% to 9% growth in the retail division, fueled by strong festive season demand.
The company’s EBITDA margin is projected to increase by 150 basis points from the previous quarter, reaching 18.4%, up from 16.9% in the same period last year.
Net profit is also anticipated to grow by 8%, reaching ₹17,853 crore, according to the news reports.
After a decline in the first half of the year, Reliance’s O2C sector is poised for a recovery, with refining margins improving from $5.6 per barrel in the prior quarter to $7.6 per barrel.
Key points to watch in Reliance Industries’ Q3 FY25 results include the performance of its refining and O2C sectors, with an anticipated improvement in refining margins.
Jio’s telecom performance, particularly in terms of ARPU growth and subscriber additions, will be crucial, as will be the retail segment’s performance, which is expected to benefit from festive season sales.
Additionally, the outlook for the upstream oil and gas segment, particularly from the KG-D6 block, and consolidated earnings will be important indicators.
Finally, the impact of recovery on refining margins and the performance of the petrochemical business will provide insights into the overall growth of the company.
Reliance Industries Ltd (RIL), led by Mukesh Ambani, saw a 5% decline in its consolidated net profit for the second quarter ending September 2024, which stood at ₹16,563 crore, compared to ₹17,394 crore in the same period last year.
Reliance Jio Infocomm reported a 23.4% increase in its consolidated net profit for the September quarter, reaching ₹6,539 crore, up from ₹5,299 crore in the previous year.
The company’s revenue from operations surged 18%, rising to ₹31,709 crore from ₹26,875 crore in the same quarter of the previous year.
Reliance Industries share price traded 0.16% higher at ₹1,254.25 at 9:20 AM on the NSE. The stock opened at ₹1,258.90 up against ₹1,252.20 at the previous close.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
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Published on: Jan 16, 2025, 9:31 AM IST
Neha Dubey
Neha Dubey is a Content Analyst with 3 years of experience in financial journalism, having written for a leading newswire agency and multiple newspapers. At Angel One, she creates daily content on finance and the economy. Neha holds a degree in Economics and a Master’s in Journalism.
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