RIL Q2 results today; here is how O2C, Jio and retail segments are expected to fare

Analysts expect RIL's result to be flat on a quarter-on-quarter (QoQ) basis. Refining margins are expected to remain subdued due to weak Singapore gross refining margins (GRM).

Singapore GRMs have been getting impacted for a number of reasons, including high crude oil prices, geopolitical tensions, supply concerns, security of supplies, and geopolitical conflict between Iran and Israel. 

Reliance Jio is likely to show steady performance on the back of the price hike undertaken by the company (0.6% QoQ subscriber growth and 7% QoQ growth in ARPU), while the retail segment’s profitability is expected to be resilient.

Further, reports say that analysts expect RIL's EBITDA to grow 2.5% quarter-on-quarter to ₹39,700 crore due to a sharp tariff hike-led 9.4% quarter-on-quarter rise in digital EBITDA; that, though, is likely to be partly offset by a 3.9% quarter-on-quarter decline in the O2C segment driven by lower refining and petchem margins.

Shares of the company have remained subdued in the past six months. The stock has fallen over 6% over the past six months and over 6.5% in the past 30 days. 

RIL Q1 FY25

RIL, India's most valuable company, reported a 5% drop in its June quarter (Q1 FY25) net profit as lower fuel cracks and petrochemical margins outdid gains in telecom and retail businesses.

The Mukesh Ambani-led conglomerate's consolidated net profit was at ₹15,138 crore, or Rs 22.37 per share, during the quarter, compared to ₹16,011 crore, or ₹23.66 a share, earnings a year back, according to the company's statement.

The net profit was also 20% lower quarter-on-quarter (QoQ) when compared to the record ₹18,951 crore earnings in the preceding three months ended March 31. 

Besides lower transportation fuel cracks or margins, particularly that of petrol, which was down 30%, and reduced chemical margins, Reliance also had a higher outgo on depreciation costs, hurting profitability.

Operationally, the company posted a 2% growth in EBITDA, or earnings before tax, at ₹42,748 crore.

Revenue from operations came in at ₹2.36 lakh crore, up 12% YoY but down 1.9% on a QoQ basis.

The mainstay oil refining and petrochemicals business, called O2C, posted a 14.3% fall in EBITDA to ₹13,093 crore.

Record data for bonus share to be announced today?

Further, as per reports, RIL's board is expected to finalise the record date for the bonus issue during its meeting on October 14, 2024. The company announced in September that its board has approved the issue of bonus shares in the ratio of 1:1 to its eligible shareholders.