The shares of this Fortune 500 company gained up to 1 percent after the company’s board approved a record date for bonus issued in the ratio of 1:1.
Reliance Industries Ltd has a market capitalization of Rs 18.43 lakh crore, the shares were trading at Rs 2,724 per share, increasing around 0.59 percent as compared to the previous closing at Rs 2,708.00 apiece.
Reason for Rise:-
The shares of the company have seen positive movement after Reliance Industries Ltd’s board of directors set October 16, 2024, as a record date for a bonus issue in the ratio of 1:1 to the eligible equity shareholders of the company.
Financial Performance:-
Looking forward to the company’s financial performance, revenue decreased by 0.1 percent from Rs 231,886 crore in Q2FY24 to Rs 231,535 crore in Q2FY25. During the same period, net profit decreased by 3 percent, from Rs 19,878 crore to Rs 19,323 crore.
Revenue Split:-
The company’s Oil-to-Chemicals segment, contributing 57% of revenues, refines 1.4 million barrels per day. The Retail segment, generating 23% of revenues, operates 15,200 stores across various categories. The Digital Services business (Jio) contributes 11% and serves 41 crore subscribers.
Footprint:-
The company owns Network 18 Media which has a presence across the full spectrum of content genres such as news, entertainment, sports, movies, and live entertainment. Its portfolio includes CNBC TV, Colors, MTV, Nick, History TV, and others. It also owns digital platforms such as moneycontrol, News 18, CNBC, First Post, voot, and Bookmyshow.
Technological Innovations:-
The company introduced True 5G voice calling (VoNR) for superior voice quality and faster call setup. It also implemented advanced interference mitigation techniques, network slicing for efficient traffic management, and enhanced location accuracy using advanced algorithms, achieving near GPS-level precision for users.
Operational Metrics:-
The company focused on streamlining operations to improve margins, saw strong growth in early October due to the festival season, and expanded by opening 464 new stores, bringing the total to 18,946 stores. Digital and new commerce businesses contributed 17% to total revenues.
Market Dynamics:-
The company faced weak downstream chemical demand and significant price corrections, prompting a focus on operational flexibility to mitigate the effects of falling cracks. However, domestic fuel retailing volumes showed strong growth, increasing by 28% year-over-year despite these challenges.
Management outlook:-
The company is investing in technology and infrastructure to expand digital services and improve customer experience. Retail strategy focuses on margin improvement through operational streamlining and customer engagement. While E&P growth benefits from demand recovery, O2C faces challenges from market volatility, emphasizing operational efficiency.
Management is optimistic about regaining industry-leading growth in Digital and Retail, despite challenges in O2C. They expect strong demand during the upcoming festival season, boosting Q3 retail performance. Additionally, they will continue leveraging technology across segments to drive growth and enhance customer experiences.
Company profile:-
Reliance Industries Limited is an India-based company, which is engaged in the activities of hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, advanced materials and composites, renewables (solar and hydrogen), retail and digital services.
Written by:- Abhishek Singh
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