Reliance Industries Q2 results tomorrow: EBITDA to O2C biz—5 key things to watch out for | Mint

Reliance Industries Q2 results tomorrow: Billionaire Mukesh Ambani-led Reliance Industries Ltd (RIL) will announce its July-September quarter results for fiscal 2024-25 (Q2FY25) on Monday, October 14, 2024. The oil-to-telecom conglomerate said in a regulatory filing to the stock exchanges that its board meeting will be conducted on Monday to consider and approve the quarterly results.

“The Board of Directors of the Company is scheduled to be held on Monday, October 14, 2024, inter alia, to consider and approve the standalone and consolidated unaudited financial results of the Company for the quarter and half year ended September 30, 2024,” said RIL in its stock exchange filing.

RIL announced that its Board of Directors had approved a bonus share issue in the ratio 1:1 during its latest annual general meeting (AGM) in August 2024. This means shareholders holding one fully paid-up equity share of ₹10 each will receive an additional share of the same value. The board also approved an increase in authorised share capital from ₹15,000 crore to ₹50,000 crore

However, RIL had not disclosed the official record date for the bonus share distribution. The bonus issuance is expected to be the largest in India’s stock market, coinciding with the festive season. According to various media reports, RIL has dubbed it an “early Diwali gift” to investors. The RIL board is expected to finalize the record date for the bonus issue during its meeting on October 14.

Reliance Industries Q2 results tomorrow: Here are 5 key things to watch out for

RIL is expected to report a muted growth in the second quarter of the current fiscal due to a weaker oil-to-chemicals (O2C) business. D-Street analysts expect the O2C biz EBITDA to fall up to 27 per cent year-on-year (YoY) and 10 per cent quarter-on-quarter (QoQ) on weak refining and petrochem segments. For the O2C segment, Jefferies expects a one per cent decline in EBITDA, compared to the previous quarter.

According to Antique Stock Broking, the O2C business is likely to be hit by weak macro trends; while Singapore GRM is flat QoQ, diesel spreads are down, and petrochem would be impacted by a sharp drop in PX and Benzene margins QoQ. “However, we expect higher Russian discount, restart of Venezuelan crude imports, and resumption of European diesel exports to cushion GRMs limiting QoQ EBITDA drop to just 3.1 per cent,” said the brokerage.

Global brokerage Jefferies anticipates a surge in the oil and gas segment’s earnings before interest, tax, depreciation, and amortization (EBITDA). According to analysts, the net EBITDA is expected to increase 5 per cent YoY but decline four per cent quarter-on-quarter (QoQ) to ₹4,999 crore. 

According to domestic brokerage JM Financial Services, RIL’s EBITDA may grow 2.5 per cent QoQ to ₹39,700 crore due to a sharp tariff-hike-led 9.4 per cent quarter-on-quarter rise in digital EBITDA; that, though, is likely to be partly offset by 3.9 per cent QoQ decline in the O2C segment. According to Motilal Oswal Financial Services, RIL is expected to report consolidated EBITDA that is flat YoY at ₹39,700 crore and standalone EBITDA that is down 26 per cent YoY at ₹14,100 crore.

According to a majority of D-Street brokerages, RIL is expected to report a 1-13 per cent dip in reported profits in Q2FY25 from a year ago. Kotak Institutional expects a modest 2.2 per cent rise. Brokerage firm ICICI Securities expects Reliance’s upstream to show softness, with a slight production decline and higher profit petroleum share of government to dent margins.