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Reliance Industries shares trading flat ahead of Q1 earnings, here's what to expect

Reliance Industries shares trading flat ahead of Q1 earnings, here's what to expect

Reliance Industries is likely to report stronger refining profitability, along with continued improvement in telecom average revenue per user (ARPU).

Shares of Reliance Industries gained 0.39 per cent to Rs 2,497.05 against the previous close of Rs 2,487.80 on BSE. Shares of Reliance Industries gained 0.39 per cent to Rs 2,497.05 against the previous close of Rs 2,487.80 on BSE.

Shares of Reliance Industries Ltd (RIL) were trading flat ahead of its Q1 earnings set to be announced today. RIL is likely to report strong earnings growth on both year-on-year (YoY) and quarter on quarter (Q-o-Q) basis. The Mukesh Ambani-led firm is set to report stronger refining profitability, along with continued improvement in telecom average revenue per user (ARPU).

The company's net profit is likely to zoom 109 per cent to Rs 28,891.6 crore on a (YoY) basis on a 74.6 per cent rise in Q1 revenue, according to YES Securities. On a Q-o-Q basis, profit is likely to rise 60.3 per cent on the back of a 17.8 per cent rise in revenue for the quarter ended June, the brokerage said.

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The conglomerate is set to announce its earnings after market hours.

Emkay Global said RIL's strong earnings growth will be led by oil-to-chemicals (O2C) and upstream gains. While Jio's earnings will be led by average ARPU growth, the company's retail business would continue to witness recovery, the brokerage said adding that RIL is likely to report a profit of Rs 25,504 crore, up 107.80 per cent YoY.

In May, Mukesh Ambani-led Reliance Jio gained a huge 31 lakh mobile subscribers. Its market share stood at an astronomical 35.69 per cent, followed closely by Bharti Airtel at 31.62 per cent.

Kotak Institutional Equities sees Reliance Industries reporting a 98.1 per cent YoY rise in net profit at Rs 24,314 crore. Sales are expected to climb 71.8 per cent YoY to Rs 2,40,410 crore. Motilal Oswal expects profit to zoom 98.7 per cent YoY to Rs 24,400 crore. Jio may add 40 lakh monthly subscribers in the June quarter and ARPU is likely to rise 3 per cent sequentially to Rs 173.

READ MORE: Jio adds over 31 lakh, Airtel 10.27 lakh subscribers in May: TRAI data

Meanwhile, shares of Reliance Industries gained 0.39 per cent to Rs 2,497.05 against the previous close of Rs 2,487.80 on BSE. RIL shares are trading higher than the 5-day and 20-day moving averages but lower than 50-day, 100-day and 200-day moving averages.

RIL stock opened higher at Rs 2,516 on BSE today against the previous close of Rs 2,487.40 on BSE. RIL shares have gained 17.69 per cent in one year and risen 5.49 per cent since the beginning of this year. Total 0.94 lakh shares of the firm changed hands amounting to a turnover of Rs 23.58 crore on BSE. Market cap of the conglomerate rose to Rs 16.89 lakh crore. The share hit a 52-week high of Rs 2,855 on April 29, 2022 and a 52-week low of Rs 2, 016 on July 28, 2021.

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 In Q4 of last fiscal, the oil-to-chemicals-to-telecom conglomerate posted a consolidated profit after tax (PAT) at Rs 16,203 crore, up 22.5 per cent in the quarter ended 31 March, 2022 following strong performance across its energy, telecom and retail verticals. The company had posted a net profit of Rs 13,227 crore in the year-ago period.

Sequentially, the company's profit declined 12.6 per cent in March quarter from Rs 18,549 crore in the previous December quarter.

RIL's revenue from operations came in at Rs 2,11,887 crore from Rs 1,54,896 crore in the same quarter last fiscal.

Published on: Jul 22, 2022, 10:17 AM IST
Posted by: Aseem Thapliyal, Jul 22, 2022, 10:10 AM IST