Reliance Industries share price rose as much as 2.4% to its day’s high of ₹1,323.80 per share on BSE on Friday, July 17, ahead of the company’s June quarter results announcement today. The oil-to-telecom conglomerate opened at ₹1,301 apiece today, as compared to the previous close of ₹1,293 on Thursday. The Mukesh Ambani stock has been under pressure recently, down 1% in 1 month, around 3.5% in 3 months, 9.5% in 6 months, and nearly 11% in the last 1 year.
Reliance Q1 Preview
Market participants expect Reliance to deliver another strong quarter, although performance across its business verticals is likely to be uneven. A rebound in the oil-to-chemicals (O2C) business and continued growth in the digital services segment are expected to underpin earnings, while softer consumer demand in retail and weaker production from the upstream business may limit the overall upside.
Brokerages broadly expect the company to report healthy double-digit growth in revenue and operating profit, driven by stronger refining margins, improving petrochemical spreads and the steady performance of Jio. However, analysts believe the retail business could continue to face pressure from subdued consumption trends, while lower output from the KG-D6 block is expected to weigh on the performance of the oil and gas exploration segment.
Equirus Securities expects consolidated net sales to rise 35% year-on-year to ₹328 crore, EBITDA to increase 14.5% to ₹49,100 crore, and net profit to grow 13% year-on-year to ₹24,593 crore. However, it expects EBITDA margins to contract by 267 basis points year-on-year to 15%, although margins are likely to remain flat sequentially.
Among Reliance’s businesses, the O2C segment is expected to emerge as the biggest contributor to earnings growth during the quarter as refining economics improve after a relatively weak March quarter. Better refining margins and stronger petrochemical spreads are expected to support profitability.
Watch this space for Reliance Industries Q1 Results Live
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