Reliance Shares Down Ahead Of Q1 Print: Here's What To Expect

Reliance‘s share price was under pressure on Friday morning ahead of the company’s June quarter results scheduled for later today.

What To Expect: Brokerages expect the conglomerate to post a quiet quarterly update for the quarter. Analysts are upbeat about the company’s telecom, retail and oil and gas segments. However, the oil-to-chemicals business is expected to drag, pulling down the overall numbers.

Kotak Institutional Equities forecasts the company’s profit to be at around ₹15,819 crore, down 1.2% year on year, with sales rising 10.9% year-on-year to ₹2.30 lakh crore.

The analysts expect telco Jio to post a 2% quarter-on-quarter increase in EBITDA, supported by around 94 lakh new net subscribers and a stable blended ARPU at ₹182. The retail segment is also expected to see a modest 2% quarter-on-quarter increase in EBITDA, driven largely by an expanded store footprint and improved operating leverage.

See Also: Infosys Shares Soar To New All-Time High As Q1 Print Impresses Brokerages, Investors

Emkay Global expects Reliance’s net profit to fall by 4.6% year on year to ₹15,279 crore in the June quarter. Revenue is projected to rise 12% year on year to ₹2.32 lakh. The brokerage forecasts Reliance Jio to add 80 lakh subscribers sequentially, with an average revenue per user (ARPU) increasing by 0.6% to ₹182.70 per month.

Brokerage firm Nuvama Institutional Equities anticipates that the conglomerate will experience a 10% year-on-year increase in revenue, though profit is expected to remain flat. The analysts project a modest 4% rise in EBITDA, but a 7% quarter-on-quarter decline. This is attributed to strong performances in the oil and gas, retail and Jio segments, contrasted by weakness in the oil-to-chemicals sector.

Motilal Oswal forecasts that Reliance's consolidated EBITDA will remain flat year on year at ₹41,000 crore, while standalone EBITDA may rise by 3% to ₹17,900 crore. The brokerage expects overall revenue to increase by 12.6% to ₹2.33 lakh crore, with adjusted profit after tax projected to climb 4% YoY.

On average brokerages across the board expect the oil-to-telecom giant to post a revenue of around ₹2.34 lakh crore with a net profit of ₹17,000 crore.

Price Action: Reliance’s share price was down 1.06% to trade at ₹3,139.85 in early trade on Friday.

Read Next: ONGC Shares In Red Today, But Brokerage Raises Target Price By 18%

Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.