Reliance Industries Ltd. share price target

Q2 EBITDA normalised with pullback in O2C profits from record levels; consumer business continued to deliver strong YoY growth

Reliance Industries (RIL) has reported a weak Q2FY23, with 18% QoQ decline in EBITDA to Rs312bn and 20% QoQ decline in net earnings to Rs155.1bn (EBITDA +20%
YoY/PAT flat YoY.

Consolidated Revenue for the quarter stood at INR 2.3 tn, up by 33.7% YoY (+4.4% QoQ), driven by 32.5% YoY (-1.3% QoQ) rise in
O2C segment revenue (57.0% of gross revenue), 42.9% YoY (+10.9% QoQ) increase in retail segment revenue (23.2% of gross revenue), 21.3% YoY (+3.7% QoQ) rise in Digital segment revenue (10.6% of gross revenue), and a 134.4% YoY (+6.3% QoQ) increase
in Oil and Gas segment revenue (1.4% of gross revenue).

Positives from the AGM include a clear succession plan, supercharged 5G rollout, restart of O2C investments, and targets in new energy

Reliance Industries (RIL), in its latest AGM (on 29 Aug’22), has announced a slew of new initiatives across businesses, along with the rolling out of 5G network from Oct 2022 in key cities (pan-India rollout by Dec’23).