Reliance: Retail, Jio promise steady, stable growth

Reliance Industries Limited (RIL)  with second-quarter (Q2 FY24) revenues driven by its retail and O2C (oil-to-chemicals) sectors. However, its upstream sector underperformed due to MJ1 gas field costs, according to a report by Emkay Research.

Jio added more subscribers than predicted. The company's net debt decreased by 7 per cent to Rs 1,18,000 crore, thanks to retail fundraising and strong cash flow. The management mentioned said capital spending will decline by the end of FY24, once it completes the 5G network setup.

RIL's current quarter spending on 5G and retail development was Rs 38,800 crore, a 2 per cent decrease from the previous quarter. Its earnings forecast for FY24-26 remains steady. "We continue to recommend buying RIL stocks, expecting stable earnings and reduced debt in the future," says the report.