Reliance Industries Set to Announce Quarterly Financial Results Amidst Predicted Decline

The Board of Directors of Reliance Industries Limited (RIL) is scheduled to convene on October 14, 2024, to consider and approve the financial results for the quarter ending September 2024. According to an exchange filing, the board will review the standalone and consolidated unaudited financial results for both the quarter and the half year ending September 30, 2024.

Following the board meeting, a presentation is planned for analysts and the media to discuss the financial results of the company. This comes amidst scrutiny due to a significant 5 percent decline in RIL’s consolidated net profit for the first quarter of June 2024, where profits fell to ₹15,138 crore from ₹16,011 crore the previous year. Despite the fall in profit, operating revenue saw a 12 percent annual increase, reaching ₹2.36 lakh crore.

The revenue increase was primarily attributed to a rising performance in the Oil-to-Chemicals (O2C) segment, driven by higher oil and product prices, paired with strong volume growth in the oil and gas sector. This was complemented by consistent growth in the company’s consumer businesses. However, consolidated EBITDA grew modestly by 2 percent year-on-year to ₹42,748 crore, while EBITDA margins dropped 150 basis points to 16.6 percent.

In financial markets, shares of Reliance Industries performed well, emerging as top performers on the Sensex, with an increase of 2 percent to settle at ₹2,796.05 on the BSE as of October 8. The company, whose market cap makes it the largest in India, saw its stock hit a 52-week high of ₹3,217.90 in July and a low of ₹2,221.05 in October of the previous year. Nevertheless, the stock has experienced a 4.45 percent decline over the past month, though it retains an 8 percent increase on a year-to-date basis.

Analysts forecast that the upcoming September quarter may present further challenges for RIL due to expectations of weaker refining margins. Brokerage firms such as ICICI Securities and Nuvama have projected potential profit declines ranging from 1 to 13 percent compared to the previous year. However, Kotak Institutional anticipates a possible modest profit increase of 2.2 percent. Available analyst estimates suggest revenue could rise up to 4 percent.