Reliance Q1 Results: Net profit declines 10% to ₹16,011 crore on weaker O2C biz, revenue down 4%; dividend declared
₹16,011 crore, down 10.8 per cent, compared to ₹17,955 crore in the corresponding period last year. On Thursday, the financial arm of RIL was demerged from its parent company. The demerged entity RSIL (Reliance Strategic Investments Limited), would be renamed JFSL (Jio Financial Services Limited) and it will be listed separately on NSE and BSE in the next few months.
Jio Financial Services was valued at ₹261.85 per share on the NSE at the end of a special pre-open call auction session conducted in the capital market segment for price discovery on Thursday. The discovered price of Jio Financial Services is above analyst expectations who had valued it at ₹125-225.
Analysts' valuations were based on around six per cent treasury stake in Reliance Industries, which Jio Financial Services would own. Experts reckon that the demerger of Jio Financial Services from diversified conglomerate will create a non-banking financial behemoth with a size of approximately ₹1.5 lakh crore which could pose a tough challenge to existing non-banking financial companies (NBFCs).
In the preceding January-March quarter of fiscal 2022-23, Reliance Industries registered a 19.11 per cent growth in consolidated net profit to ₹19,299 crore - compared to ₹16,203 crore in the year-ago period, driven by robust upside in mainstay oil-to-chemicals (O2C) posting highest ever operating profit and lower rate. The O2C business reported a record EBITDA of ₹16,293 crore in Q4FY23 surging by 14.4 per cent.
However, the segment's revenue dipped by 11.8 per cent annually to ₹128,633 crore during the quarter. On July 21, shares of RIL settled 2.57 per cent lower at ₹2,536.20 apiece on the BSE and emerged as one of the top losers on the S&P BSE Sensex index,
. Read more on livemint.com
