Reliance Industries Expected Profit Decline Amid Crude Price Surge
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
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Source: Newsfilter
- Profit Decline Expected: Reliance Industries is projected to see a 3.7% year-over-year decline in net profit for the March quarter, despite an expected 8.1% revenue increase, reflecting pressure on its oil-to-chemicals business from surging crude prices due to the Middle East conflict.
- Crude Price Impact: Brent crude has surged over 40% since late February, creating uncertainty around Reliance's profitability, although refining operations theoretically should benefit from higher crack spreads.
- Retail Growth Slowing: Analysts expect Reliance's retail segment to grow by 8% in the March quarter, marking the second consecutive quarter of sub-10% growth, indicating the impact of intensifying competition.
- Strong Telecom Performance: Reliance's telecom business is expected to continue strong subscriber growth, with an anticipated addition of 5 million users in the March quarter, bringing the total to 520 million, while average revenue per user is expected to rise slightly to 216 rupees.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
