Q2FY24 Preview: Reliance Industries: Revenue seen at Rs. 2,230,864 million, PAT at Rs. 162,198 million

26 Oct 2023 , 09:59 AM

Result date: October 27, 2023

Recommendation: Buy

Target price: Rs. 2,761

Analysts at IIFL Capital Services believe Reliance Industries (RIL) will gain from the integrated value chain and pickup in the B2C business (19% growth expected over the year-ago quarter). They expect RIL to report 19% growth in earnings as compared to the year-ago quarter. All segments of the company should perform well with 31% year-on-year growth in O2C EBITDA (firm GRMs +feedstock optimization in petchem), 53% year-on-year growth in E&P (production increase), 16% year-on-year growth in Jio and 20% year-on-year growth in retail EBITDA (store ramp-up etc.).

While EBITDA could grow 28% over the year-ago quarter, growth of Profit After Tax (PAT) is forecasted at 19%.

Important management insights to watch out for:

• Growth outlook across businesses
• Impact of forex, interest rates on the financials

Rs. Million	September 2023 estimates	YoY change	QoQ change
EBITDA	398,845	28%	5%
Profit After Tax	162,198	19%	1%

Source: IIFL Research

Segment EBITDA (Rs. Mn)	September 2023 estimates	YoY change	QoQ change
O2C	157,000	31%	3%
Oil and Gas	48,385	53%	21%
Retail	53,045	20%	3%
Digital services	142,151	16%	4%
Financial services	–	NM	NM
Others	22,670	62%	0%

Source: IIFL Research

NM stands for not matchable