Reliance Industries gained 2.6% on bourses amid weakness in the broader market on Friday following better than expected performance in the third-quarter driven by the retail and O2C segments. On the retail front, the company continued to add stores on a net basis but the area declined reflecting focus on profitable growth. After a festive demand pull, the growth rates for the retail segment are expected to normalise in the fourth quarter. The O2C segment may face pressure given weaker oil and polymer cracks at the beginning of the March quarter.
The digital segment is expected to show normalisation in the net subscriber additions, which may limit the average revenue per user (ARPU) expansion.
The digital segment reported a sustained net subscriber addition and improved ARPU helped by tariff revisions. Of the 3.3 million net additions, two million were in the home broadband connections category implying increasing penetration. In addition, data traffic grew by 22% year-on-year and 3.3% sequentially to 46.5 billion. However, the ARPU growth at 4.2% sequentially missed analyst estimates of 5-5.5% increase reflecting a lower benefit of rising tariffs.
ETMarkets.com
The next round of tariff increase is expected in December 2025, which means the ARPU improvement will depend upon the introduction of new plans and user adoption of 5G services. In the December quarter, 5G subscriber base expanded by 14.9% sequentially to 170 million and contributed 40% to data usage.After reporting a slack in the previous quarter, the retail division showed strong momentum in the December quarter, driven by festive demand. Its operating margin before depreciation and amortisation (EBITDA margin) improved by 20 basis points year-on-year to 8.3% on a revenue growth of 7% to ₹79,595 crore.
The share of digital commerce improved to 18% from 17% sequentially. However, the offline business rose by 10% year-on-year, faster than the 3% increase in digital commerce. The net store area declined by two million square feet (msf) to 77.4 msf from the previous quarter while net count improved by 156 to 19,102. This highlights streamlining of operations amid traction in grocery, consumer electronics, fashion and lifestyle segments.
The upstream oil and gas division reported lower revenue growth and EBITDA margin from the year ago due to lower production volume from KG D6 basin and lower realisation. In the refining O2C division, the fall in the realisations (cracks) of transportation fuels amid lower Chinese demand and ample global supply led by higher refinery output in the US was partially offset by higher refining throughput and strong domestic demand.
[hfe_template id='11223']
[ad_1]
Volatility in Indian equity markets has surged sharply over the past month, with the India VIX nearly doubling as geopolitical tensions and global uncertainty triggered aggressive selling in equities. India VIX, often referred to as the market’s fear gauge, has jumped close to 100% over the past month, reflecting growing nervousness among investors. The spike has coincided with a sharp correction in the broader market, with the Nifty 50 declining about 8% during the same period. The escalation of tensions involving the United States, Israel and Iran has intensified market anxiety in recent days, pushing crude oil prices sharply higher and triggering a global risk-off sentiment. However, analysts note that volatility had already been building even before the conflict escalated, reflecting broader concerns around global growth, foreign capital outflows and stretched valuations in equities. The heightened uncertainty translated into a sharp ...
[hfe_template id='11223']
[ad_1]
Benchmark indices Sensex and Nifty ended the week on a bearish note, closing over a percent lower each as a deepening selloff in IT stocks rattled investor sentiment amid mounting fears of AI-led disruption. Further, stronger-than-expected jobs data for January dampened hopes of a US Fed interest rate cut. Here are 7 factors that could decide market action in the coming week: 1.) Infosys, Wipro ADRs rebound - After a brutal two-day selloff that saw Infosys and Wipro ADRs plunge as much as 14.5%, Friday’s session brought a much-needed breather. Bargain hunting kicked in at lower levels, sparking a sharp rebound as Infosys climbed 3% while Wipro gained 4%—helping both stocks close the week on a far stronger note. International brokerage firm JP Morgan has a message for panic-stricken investors: IT services firms are the indispensable "plumbers of the tech world" and their dividend yields have now hit levels last seen only during ...
[hfe_template id='11223']
[ad_1]
Waaree Energies shares will be in focus on Wednesday after the solar panel maker reported a strong Q4 performance, with net profit rising 34.1% year-on-year (YoY) to Rs 618.9 crore for the quarter ended March 31, 2025. In the same quarter last year, the company had reported a profit of Rs 461.5 crore. Revenue from operations jumped 36.4% to Rs 4,003.9 crore, up from Rs 2,935.8 crore in the year-ago period, according to the company’s regulatory filing. EBITDA more than doubled to Rs 922.6 crore in Q4 FY25, up 120.6% from Rs 418.3 crore in the same quarter last year. The EBITDA margin improved to 23% from 14.3% a year ago. The company produced 2.06 GW of solar modules in the fourth quarter, up from 1.35 GW in the same period last year. For the full year, module production reached 7.13 GW, compared to 4.77 GW in FY24. For the full financial year FY25, revenue rose 27.62% YoY to Rs 14,846.06 crore. Profit after tax more than doubled to Rs 1,9...
[hfe_template id='11223']
[ad_1]
ETMarkets.com
Comments
Post a Comment