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)