RIL Q2 Results: Profit Partially Impacted By Declining O2C Business

Reliance Industries Ltd. reported its second quarter results, with a net profit rise of 11% to Rs 19,323 crore for the quarter ended September 2024. This profit figure aligns with the consensus estimates of analysts polled by Bloomberg. The growth in profit was partially impacted by negative pressure on gross refining margins affecting the oil-to-chemicals segment. However, strong performance in the retail and telecom segments contributed positively.

Net profit of the Mukesh Ambani-led conglomerate rose 11% sequentially to Rs 19,323 crore for the quarter ended September 2024, according to an exchange filing. This compares with the Rs 18,814 crore polled consensus estimates of analysts polled by Bloomberg.

• Revenue down 0.3% to Rs 2.31 lakh crore. (Bloomberg estimate: Rs 2.36 lakh crore)

• Ebitda up 0.8% to Rs 39,058 crore. (Bloomberg estimate: Rs 40,438 crore)

• Margin at 16.9% versus 16.7%. (Bloomberg estimate: 14.30%).

• Net profit up 11% to Rs 19,323 crore. ((Bloomberg estimate: Rs 18,814 crore)

In the oil-to-chemicals division, revenue increased by 5.1% year-on-year during July-September period to Rs 155,580 crore. However, exports declined by 15.7% year-on-year during the second quarter, totalling Rs 70,631 crore. Ebitda fell by 23.7% to Rs 12,413 crore during the period, while the margin decreased by 300 basis points to 8% from 11%.

The company noted that an unfavourable demand-supply balance impacted O2C Ebitda, according to its media statement. Transportation fuel cracks for petrol and diesel dropped by 50% due to poor demand-supply conditions in the second quarter of the current financial year, Reliance Industries said. Additionally, weak downstream chemical deltas also affected O2C operating profit.

The shares of Reliance Industries rose as much as 0.58% during the day to Rs 2,760.15 apiece on the NSE, closing 0.03% higher at Rs 2,745.05 per share. This performance is in contrast to a 0.66% advance in the benchmark Nifty 50. Over the last 12 months, Reliance shares have increased by 17.11%, with a year-to-date rise of 5.98%.