RIL Q2 net profit could increase, driven by overall growth in the retail, Jio telecom, and oil sectors

27 Oct 2023 , 03:25 PM

Even with a slight increase in revenue, Reliance Industries is anticipated to record a strong increase in net profit for the second quarter of its fiscal year, mostly due to gains in the refining margin. 

The largest firm in India based on market capitalization is likely to perform well across the board, with the exception of the petrochemical industry, which may see some decline.

Following the O2C result in Q1 FY24, analysts predict stable growth across the board in Q2 FY24. increased foot traffic will result in increased retail EBITDA. New customers will boost Jio’s EBITDA, and higher gas output will boost the EBITDA of Oil and Gas.

Estimated net profit is Rs 17,482 crore, up 27.2% from the previous year. Expected to reach Rs 39,696 crore in the second quarter, RIL’s EBITDA is up 28% year over year and 9.2% quarter over quarter.

On October 27, the corporation is expected to release its earnings for the July-September quarter.

Analysts predict that a robust GRM of $12.5/bbl will propel RIL’s Oil-to-Chemicals sector EBITDA to rise by 3% to Rs 15,700 crore in 1QFY24. The steep increase in diesel cracks is the cause of this increase, however, reduced petchem margins, lower refining throughput owing to maintenance, and a decline in the Russian crude discount partially offset it.

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