The country's largest company Reliance Industries Limited (RIL) is once again back on the path of growth after six months of challenges. The world has also been surprised to see the company's earnings. The company has given better results than expected in the December quarter. The group, operating in sectors ranging from crude oil to telecom and retail, has recorded its highest EBITDA of Rs 43,800 crore in the October-December quarter.
These figures show that the group has delivered strong performance across various business areas. Mainly the company has performed well in the oil-to-chemicals (O2C) sector. Apart from this, the consumer retail business of the company has also improved. Let us also tell you what the brokerage companies are estimating about Reliance Industries.
Morgan Stanley said in a note that after six months of challenges, Reliance has returned to the path of growth. The company intends to expand its chemicals capacity with a focus on the domestic market with investments in vinyl/polyester series and fuel import logistics. Morgan Stanley said that the demand for chemicals in India remains strong, which is growing at the rate of 5 to 16 percent annually.
HSBC Global Research said it sees several catalysts to drive the group's business forward in 2025. This includes changes in the retail sector, introduction of new energy and new momentum in digital business. It said that we believe that the third quarter results have been in line with expectations. This is the latest in a string of slightly lower-than-expected near-term results. We now believe that changes in the retail sector, introduction of new energy business and the pace of digital business will prove to be a catalyst for the group.
HSBC believes that the company will complete the optimization of its portfolio and products for the retail sector and return to the path of growth. The company will move forward in the business of instant grocery supply through its hyperlocal model. Talking about new energy business, Reliance is expected to start module production and cell business.
The company will also commission five to 10 gigawatt solar capacity for its own use, increase production of sodium ion cells and announce hydrogen manufacturing. HSBC said that on the digital front, increasing the reach of airfibre based broadband will increase the company's average earnings per customer (ARPU). The full effect of the fee increase will be visible by June 2025.
Nomura said that in the near term, Reliance will move forward through three things. This includes the new energy business starting in March 2025, tariff increase for Jio and a possible initial public offering (IPO) and listing of Jio itself. Nuwama Institutional Equities said that after petrochemical expansion, Reliance will be among the top 10 producers in the world. According to Bernstein, the good performance of Jio, retail and exploration and production sectors has contributed to the better results of Reliance Group in the third quarter.
