Reliance Fixes Q3 Results Date Next Week, Reliance Retail, Jio Earnings Too; BUY Stock After 1:1 Bonus Reward?

Billionaire Mukesh Ambani backed Reliance Industries has announced the date of its Q3 results for FY25. Reliance will also present earnings report of Reliance Retail and Jio alongside as well. The upcoming quarterly earning comes after Reliance rewarded investors with strong bonus issue of 1:1 in Q3. Should you buy this largest oil and gas stock after 1:1 bonus and ahead of Q3?

Reliance Industries Share Price:

On BSE, Reliance Industries share price ended at Rs 1255 apiece, down by 0.8% after market hours of January 9th, with market cap at Rs 16,98,312.80 crore. The stock's 52-week high and low is at Rs 1,608.95 apiece and Rs 1,202.10 apiece respectively.

Reliance Industries Q3 Results:

As per the regulatory filing, a meeting of the Board of Directors of the Company is scheduled to be held on Thursday, January 16, 2025, inter alia, to consider and approve the standalone and consolidated unaudited financial results of the Company for the quarter and nine months ended December 31, 2024.

The earnings of Reliance Retail and Jio will also be presented on January 16th.

In Q2FY25, Reliance reported consolidated net profit attributed to the company's owners, at Rs 16,563 crore, declining by 4.8% YoY. The bottom-line front took a hit on a YoY basis after Reliance's Q2C EBITDA declined sharply by 23.7% YoY owing to weak product margins. The retail business saw a slight improvement, while the EBITDA of the telecom and oil & gas business was healthy. Gross revenue witnessed a gradual upside of 0.8% YoY to Rs 258,027 crore in Q2FY25, compared to Rs 255,996 crore in Q2FY24. As per Reliance, on the top-line front, oil-to-chemicals (O2C) revenue improved with higher volumes and increased domestic placement of products.

What To Expect From Reliance Q2 Results:

According to JM Financia, RIL's 3QFY25 EBITDA is likely to grow 7.3% QoQ to INR 419bn led by 10.3% QoQ growth in O2C EBITDA on account of improvement in GRM and 4.6% QoQ growth in Digital EBITDA as the Jul'24 tariff hike continues to pass-through their ARPU; however, muted growth in Retail business EBITDA continues (up 5.8% QoQ, but down 1.1% YoY) due to scale-down in the B2B business.

Here are key expectations of JM Finance on Reliance's Q3 results --- a) O2C EBITDA may grow 10.3% QoQ to INR 137bn due to improvement in GRM to ~USD 8.6/bbl vs. S'pore Dubai GRM of USD 5.0/bbl (and vs. RIL's implied GRM of ~USD 7.1/bbl in 2QFY25) due to recovery in diesel cracks while refining throughput could be ~2% lower QoQ at 16.0mmt; however, weakness in petchem margin is expected to continue, though flattish QoQ; b) E&P EBITDA to be flattish QoQ at INR 53bn due to largely flattish gas output and price; c) Retail EBITDA is likely to decline 1% YoY to INR 62bn due to scale-down in B2B business; d) Digital EBITDA is expected to grow 4.6% QoQ to INR 169bn on 4.6% QoQ rise in ARPU to INR 204 as the Jul'24 tariff hike continues to pass through their ARPU.

Time To Buy Reliance Stock?

JM Financial has reiterated BUY on Reliance for a target price of Rs 1,660.

In Q3, Reliance announced that it allotted 676,61,86,449 equity shares of Rs. 10/- (Rupees Ten only) each as fully paid-up bonus equity shares, in the proportion of 1:1, i.e., 1 (One) new fully paid-up equity share of Rs. 10/- (Rupees Ten only) each for every 1 (One) existing fully paid-up equity share of Rs. 10/- (Rupees Ten only) each. The ratio of bonus issues is 1:1.

Reliance Industries Limited (RIL) is a Fortune Global 500 company and the largest private sector company in India. RIL is a diversified conglomerate with business interests across oil refining, petrochemicals, exploration and production, retail, and digital services.