Stock To Watch Today: Reliance's Profit Rises 46%, Jio's Profit Rises 23.8% In Q1: Bullish Stock

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oi-Kuntala Sarkar
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Published: Saturday, July 23, 2022, 6:30 [IST]

On July 22, Reliance Industries (RIL) and Reliance Jio reported financial results. RIL stock prices have been gaining significantly, although it was performing flat in the past week. RIL stock prices gained marginally by 0.67% in the intra-day trading yesterday, closed at Rs. 2,502.95, and in the past 5 days, its stock prices gained 3.74%. Additionally, RIL’s share price surged by 5.26% in the last 6 months, and surged by 18.87% last year. After the publication of its financial results, RIL’s stock price is expected to gain further, and investors can watch for it.

Reliance Industries (RIL) financials

RIL reported a 46.3% YoY rise in its consolidated net profit of Rs. 17,955 crore in Q1FY23, however, it stood below analysts’ expectations. It has also recorded a 45.8% YoY gain in its consolidated operating profit to a sharp high of Rs. 40,179 crore in Q1FY23. Additionally, the company reported a 54.5% YoY gain in its consolidated revenue from operations to Rs. 2.23 lakh crore, quoted below estimations.

Commenting on the result, Chairman and Managing Director Mukesh Ambani said, “Despite significant challenges posed by the tight crude markets and higher energy and freight costs, O2C business has delivered its best performance ever. I am also happy with the progress of our Consumer platforms.”

Reliance Jio financials

Reliance Jio reported an increase of 23.8% in its standalone net profit of Rs. 4,335 crore in Q1FY23, compared to Rs 3,501 crore in Q1FY22. Reliance Jio’s revenue stood at Rs. 21,873 crore in Q1FY23 , gaining by 21.6% from Rs. 17,994 crore in Q1FY22. The platform’s profit increased 3.9% QoQ from Rs. 4,173 crore in Q4FY22.

Commenting on the result, Mukesh Ambani, Chairman & Managing Director said, “Customer engagement on our Digital Services platform remains high. Jio is working towards expanding data availability for all Indians and I am pleased to see the positive trends in mobility and FTTH subscriber additions”.

Emkay Global on the telecommunication sector

Reliance Jio, as a major telecommunication player in India, has surged its subscribers and VLR base. “For the second month in a row, Jio added the highest number of subscribers overall, with its base growing by 3.1mn – its highest in the last 10 months. Jio has further extended its lead and now has 5.9mn wireline broadband subscribers in total. VLR base also expanded by 4.5mn after a marginal decline in Apr’22. VLR proportion rose to 93.8% in May from 93.4% in April 2022. VLR subscriber market share improved further to 38% from 37% in Apr’22. UP (E), Bihar, and WB circles saw the highest VLR additions, while AP and Mumbai circles saw the steepest fall. We are estimating 6mn subscriber adds for Q1FY23 vs its delivery of 4.8mn adds in April and May,” Emkay Global mentioned in a recent report on the telecommunication sector.

Disclaimer

Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, and the author, are not liable for any losses caused as a result of decisions based on the article. This article only incorporates the recent stock-related information about the companies.

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Story first published: Saturday, July 23, 2022, 6:30 [IST]

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