Shares of Reliance Industries (RIL) declined 1.6 per cent to hit an intraday low of Rs 2,072 on BSE after the company posted the results for the quarter ended June 2021. The stock ended 1.53 per cent lower at Rs 2,073 against the previous close of Rs 2,105.20 on BSE.
Reliance Industries Limited (RIL) reported a 7.2 per cent year-on-year (YoY) decline in its consolidated net profit at Rs 12,273 crore for the quarter ended June 2021. Revenue from operations rose 58.2 per cent to Rs 1,44,372 crore from Rs 91,238 crore in the year-ago quarter, which was hit by the nationwide lockdown imposed to curb the spread of COVID-19 infections.
The company said its earnings before interest, tax, depreciation, and amortisation (EBIITDA) rose 27.6 per cent YoY to Rs 27,550 crore during the quarter under review.
Jio Platforms Ltd, a subsidiary of the company, posted a 44.9 per cent YoY increase in net profit at Rs 3,651 crore during the quarter. During the quarter under review, Reliance Retail Ventures Limited reported a net profit of Rs 962 crore, higher by 123.2 per cent YoY.
Motilal Oswal has a ‘Buy’ rating on the stock with a target price of Rs 2,485 per share. “Gas production of over 18mmscmd is expected in FY22 (from already commissioned R-Cluster and Sat-Cluster), while the MJ field will be commissioned in 3QFY23,” the brokerage house said.
Prabhudas Lilladher believes that RIL is well-positioned to incubate new business and pursue inorganic opportunities with its liquid Balance Sheet. The brokerage firm noted that Retail was hit by lower footfalls (-46% QoQ), but will pick up as restrictions ease.
Nomura has maintained a ‘Buy’ call with a target price at Rs 2,400 per share as the Q1 EBITDA was in-line as weaker retail offset by better standalone/Jio.
However, Macquarie has an ‘Underperform’ rating on the stock with a target price at Rs 1,350 per share as there was no incremental update on new energy, JioPhone+, oil-to-chemical stake sale, and JustDial acquisition.
“I am happy that our company has delivered robust growth despite facing a highly challenging operating environment caused by the second wave of the COVID pandemic. The results of the first quarter of FY2022 clearly demonstrate the resilience of Reliance’s diversified portfolio of businesses that cater to large parts of the consumption basket,” RIL CMD Mukesh Ambani said.