INSUBCONTINENT EXCLUSIVE:
Global brokerage remained upbeat on Reliance Industries (RIL) after the oil-to-telecom behemoth posted a 6.8 per cent year-on-year (YoY)
rise in its consolidated net profit for the quarter ended June 30
The firm led by Mukesh Ambani had posted a net profit of Rs 10,104 crore in the April-June quarter against Rs 9,459 crore in the same
target price of Rs 1,500, indicating an upside of over 20 per cent from the current market prices.
The foreign brokerage firm added that
Reliance performed in a tough environment yet again
It added that Jio surprised on many counts and overall capex remained high due to higher spend on the refinery
Standalone net profit of Rs 9,036 crore, up 2.4 per cent over the previous year, was a record.
It clocked a record consolidated revenue of
Rs 1,72,956 crore in Q1 on the back of robust retail sales.
RIL opened more retail stores and added 24.6 million subscribers to its Jio
mobile phone service that helped increase the profitability of the venture as its traditional oil refining and petrochemical business
witnessed margin pressures.
Reliance reported record pre-tax profit from its retail and telecom businesses
The two now account for nearly 32 per cent of EBITDA, up from close to 25 per cent previously.
Adding 229 new stores to take the total
strength to 10,644, the retail business posted a 70 per cent jump in pre-tax profit to Rs 2,049 crore and a 47.5 per cent rise in revenue to
intensity remains high with a total investment of Rs 22,600 in 1QFY20, of which Jio accounted for Rs 8,500 crore, RIL standalone for Rs 6000
crore and retail for Rs 2000 crore
There is no specific guidance on capex going forward
Financial Services said in a report.
It also added that the current valuations of the new-age retail and telecom segments reflect the fair
value of those businesses, which is already built in our rich valuations
The scrip was trading 0.47 per cent down at Rs 1,243 at around 9.46 am (IST), while the BSE Sensex was trading 336 points, or 0.88 per