Reliance Share Price Tumbles After Q3 Miss
On Monday, January 19, shares of Reliance Industries (RIL), the most valuable company in India, suffered a setback as they decreased by 2.5% during early trading. The BSE-listed stock fell to ₹1,420, placing it among the top losers of the Sensex in the morning hours. Investors panicked after the company’s Q3 results fell short of consensus estimates, mainly due to weaker-than-expected performance in the retail sector and muted revenue growth.
Not even the mighty empire of billionaire Mukesh Ambani was able to avoid scrutiny, as analysts pointed to sluggish sales in fashion & lifestyle and expansion costs related to Quick Commerce.
Is this just a temporary setback for RIL, or do they have what it takes to bounce back?
Reliance Share Price After RIL Q3 Results: Reliance Share Price Under Pressure After Profit Miss
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RIL Q3 Net Profit: Mukesh Ambani-led Reliance Industries posted a consolidated net profit of ₹18,645 crore.
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Missed Estimates: The net profit fell short of LSEG consensus estimates of ₹19,644 crore.
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EBITDA Performance: Q3 EBITDA stood at around ₹46,000 crore.
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Year-on-Year Growth: EBITDA grew 5% YoY.
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Quarter-on-Quarter Trend: EBITDA remained flat compared to the previous quarter (QoQ).
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Consensus Miss: EBITDA missed analyst estimates by 3.9%.
Reliance Share Price Dips As Retail Segment Slows Growth
Reliance Retail’s Q3 results were a bit baffling for investors. Just an 8.1% YoY increase in sales and a 1.1% YoY rise in EBITDA were reported, indicating that revenue growth was very restrained. The reasons behind it are manifold. The biggest factor was the changing of seasons along with structural changes. Q2 saw the festive season’s big shopping spree, which in turn dented Q3 figures. Besides, the demerger of FMCG goods also contributed to this scenario, while the retail segment’s costly expansion of Quick Commerce (QC) was a short-term affair. Further, fashion & lifestyle sales were not as strong as expected, and the new labor code enactment put an additional burden on operations.
In the end, what’s the investors’ position?
Just a little inconvenience, or an indication that Reliance Retail is in a difficult situation? The empire of Mukesh Ambani seems firm, but the retail segment’s slowdown is a reminder that even the strongest can stumble.
(With Inputs)
Aishwarya is a journalism graduate with over three years of experience thriving in the buzzing corporate media world. She’s got a knack for decoding business news, tracking the twists and turns of the stock market, covering the masala of the entertainment world, and sometimes her stories come with just the right sprinkle of political commentary. She has worked with several organizations, interned at ZEE and gained professional skills at TV9 and News24, And now is learning and writing at NewsX, she’s no stranger to the newsroom hustle. Her storytelling style is fast-paced, creative, and perfectly tailored to connect with both the platform and its audience. Moto: Approaching every story from the reader’s point of view, backing up her insights with solid facts.
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