What: Indian conglomerate Reliance posts better than expected results.

Why it is important: Retail operations contributed to the growth, thanks to their integration in a broader tech ecosystem allowing a “super app” proposal to customers.

Reliance Industries Ltd exceeded Q2F24 EBITDA predictions by 2%, primarily from impressive energy and retail sales, leading to a 27% rise in net profit to ₹17,394 crore. The company's consolidated revenue also saw a 1% increase, reaching ₹2.34 lakh crore for the quarter.

This positive performance is attributed to the completion of the 5G network and the growth of its retail ecosystem. While there were costs from commissioning MJ1, the company still surpassed Retail and O2C expectations. The company reduced its net debt by ₹8,000 crore, achieving a net debt of ₹1.2 lakh crore since March, aided by a ₹15,300 crore capital raise from retail venture stake sales.

In terms of outlook, analysts expect significant EBITDA growth for RIL's consumer sector, and it's a promising refining phase for RIL. Several financial firms maintain a positive stance on RIL's shares, citing potential growth in the retail sector and digital initiatives. Lastly, InvestingPro highlights RIL's strong financial position, noting its consistent dividend payments and growth.

Reliance Retail outperforms expectations