RIL Q2 Results Preview: Profit, EBITDA to show healthy YoY growth; updates on new energy, retail, telecom to be in focus

After a subdued show in the April-June quarter, the September quarter (Q2) earnings of India's diversified behemoth Reliance Industries (RIL) is expected to show healthy year-on-year (YoY) growth in profit and EBITDA (earnings before interest, taxes, depreciation, and amortization) led by decent growth in oil to chemicals (O2C) segment as well as telecom and retail.

In Q1FY24, the company witnessed a 10.8 per cent decline in its net profit at ₹16,011 crore, while revenue from operations fell 4.69 per cent to ₹2,31,132 crore.

RIL will announce its Q2FY24 results on Friday, October 27.

Apart from key numbers, investors will focus on updates on new energy business and trends in retail and telecom segments.

According to brokerage firm Motilal Oswal, further clarity on the ₹75,000 crore announcements in the new energy business, growth in retail store additions, and any pricing action in the telecom segment are the key monitorables in RIL's Q2 earnings.

(Exciting news! Mint is now on WhatsApp Channels. Subscribe today by clicking the link and stay updated with the latest financial insights! Click here!) 

Let's take a look at what top brokerage firms expect from RIL's Q2FY24 earnings.

Motilal Oswal Financial Services

As per the estimates of Motilal Oswal, RIL's net sales may fall 2 per cent year-on-year (YoY) to ₹2,25,400 crore. However, adjusted PAT may see a 21.4 per cent YoY growth.

Motilal Oswal expects RIL's consolidated EBITDA for Q2FY24 to rise 21 per cent YoY but fall 1 per cent quarter-on-quarter (QoQ) to ₹37,900 crore. EBITDA margin for the quarter may improve to 16.8 per cent against 13.6 per cent YoY.

For the oil to chemicals (O2C) segment, Motilal expects EBITDA to rise 40 per cent YoY and 3 per cent QoQ to ₹16,800 crore.

Also Read: Reliance Jio partners with Plume to deliver AI-enhanced in-home services

Kotak Institutional Equities

Kotak expects a 3 per cent YoY rise in Q2 net sales to the tune of ₹2,37,000.5 crore while adjusted PAT may rise 25.7 per cent YoY to ₹17,162.6 crore.

Kotak expects RIL’s standalone EBITDA to improve 9 per cent QoQ as an increase in KG basin gas production and likely sequential improvement in GRMs (gross refinery margins) would be partly offset by weaker petchem (petrochemicals business) spreads QoQ.

Kotak expects RIL's consolidated EBITDA to improve by 6 per cent QoQ on better standalone performance and steady growth in digital services and organised retail.

"We expect EBITDA for (1) R-Jio to increase 4 per cent QoQ, driven by about 10 million overall net subscriber adds and blended ARPU improving to ₹183 (versus ₹181 QoQ) on continued subs mix improvement, rising FTTH (Fiber-to-the-Home) contribution, and QoQ higher days in Q2 and (2) retail to increase by nearly 5 per cent QoQ, driven by increased store footprint, and benefits of operating leverage," said Kotak.

Nuvama Wealth Management

Nuvama expects a nearly 26 per cent YoY and 4 per cent QoQ rise in RIL's Q2 EBITDA on account of strong performance across all verticals.

"We expect RIL ONG's EBITDA to rise about 45 per cent YoY and 15 per cent QoQ on higher deepwater gas prices. We expect O2C EBITDA to rise 30 per cent YoY and 2 per cent QoQ on strong refining offset by the subdued petchem segment," said Nuvama.

"Retail EBITDA is likely to remain strong (up 22 per cent YoY and 6 per cent QoQ) on higher footfalls. Jio's EBITDA is likely to surge 18 per cent YoY and 6 per cent QoQ on a high subscriber base (up 7 per cent YoY and 2 per cent QoQ). ARPU shall likely remain flat YoY and QoQ in Q2FY24 at ₹173," said Nuvama.

Also Read: Tech Mahindra Q2 Results: Sharp fall in profit; dividend of ₹12; 5 key takeaways from Tech Mahindra's Q2 earnings

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.