RIL Q2 Preview: Reliance Jio, Retail Likely To Cushion The Company's Financials Sequentially

It is projected that the performance of its telecom unit and a rebound in the retail segment will offer support to the company’s financials sequentially.

(PTI)

RIL Q2 Preview: Hit by Covid-19 pandemic, companies are announcing its results with the oil-to-telecom conglomerate Reliance Industries Ltd (RIL) in the line to announce its September quarter earnings of FY21 (Q2FY21) on Friday. According to the leading business website Bloombergquint, Reliance Industries Ltd’s profit and revenue are estimated to decline on the back of lower demand for petchem fuel with refining margin also taking a blow in the quarter ended September. It is expected that all segments of the group except refining are expected to do well. As per the average of analyst estimates by Bloomberg, the company’s consolidated net profit is estimated to decline 27.2% year-on-year to Rs 8,194 crore in the July-September period. Consolidated revenue is likely to fall by a fourth to Rs 1,11,468 crore, while operating income is estimated to slip 13.7%. Meanwhile global agency Goldman Sachs has estimated its petchem business to make up for the losses from Q1 trough. It expects the petchem EBITDA to rise 28 per cent on a QoQ basis. However, it is expected that the consumer businesses will pick up on a sequential basis. Nomura has estimated a 29 percent q-o-q growth in Reliance Retail revenues and a 55 percent growth in EBITDA. It is projected that the performance of its telecom unit and a rebound in the retail segment will offer support to the company’s financials sequentially. In a Moneycontrol report, Motilal Oswal has stated that Reliance Jio and Reliance Retail should drive next leg of growth, while expecting 29 percent sequential growth in revenue and 8.2 percent QoQ rise in EBITDA (earnings before interest, tax, depreciation and amortisation) in quarter ended September 2020. The stock has surged 35 percent in current calendar year 2020 and gained 131 percent since the lowest in March. It had touched a high of Rs 2,369.35 per share to hit a market capitalisation of Rs 16 lakh crore on September 16.