RIL to post robust earnings on Friday due to recovery in retail business

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RIL to post robust earnings on Friday due to recovery in retail business

Energy-to-telecom behemoth Reliance Industries RIL is likely to post robust earnings on Friday due to recovery in retail business and improvement in refinery margins. In general, July-September earnings for the oil and gas sector look strong on the back of the relatively lower base of Q 2 FY 21 and strong price movement in the quarter for both crude and natural gas which boosted earnings for upstream, gas utilities and also oil marketing companies OMCs Shares of the company have already outperformed the benchmark equity index BSE Sensex on a year-to-date basis. Where RIL has gained 36 per cent to Rs 2,699 since January, the 30 - share Sensex has gained 28 per cent during the same period.

Commenting on the outperformance, Japanese brokerage firm Nomura said that the recent run has been driven by both the improving outlook for each of its key operating businesses and also investors taking Reliance s planned forays into new energy business positively.

Brokerage YES Securities sees 36.50 per cent YoY and 4.8 per cent QoQ growth in net profit at Rs 14,472. 70 crore in FY 22. Q2 - FY 22. On the other hand, it believes that RIL may report 35.90 per cent YoY and 8 per cent QoQ growth in revenue for the quarter ended September 30.

Centrum Broking added that RIL should deliver a good Q 2 with a 31 per cent and 38 per cent YoY uptick in EBITDA and PAT, respectively, helped by a strong recovery in retail and growth in the upstream segment.

An improvement in EBIT for the retail or upstream segments will offset the muted Jio performance in Q 2. Average revenue per user ARPU however, grows to around Rs 142 levels, driving a 3 per cent QoQ EBITDA growth for Reliance Jio, Centrum Broking said.

An assessment by JM Financial also showed that RIL s net profit may grow 43.10 per cent YoY and 11.5 per cent QoQ in Q 2 FY 22. It is projected that retail EBITDA is likely to show a sharp uptick by 54 per cent QoQ at Rs 3,000 crore due to the easing of lockdown restrictions.

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