A review of the anticipated Q2 earnings announcements reveals expected declines in net profit for Reliance Industries Limited due to O2C segment challenges, while HCL Technologies is projected to show revenue growth between 7% to 9.2% year-on-year. Reliance is likely to report muted earnings, with net profit estimates down as much as 10%, whereas HCL is forecasted to exhibit promising growth metrics.
On October 14, key companies such as Reliance Industries Limited (RIL) and HCL Technologies will unveil their second-quarter earnings. Other notable entities reporting include Angel One, Alok Industries, Oriental Hotels, and Rajoo Engineers. For RIL, projections indicate a potential year-on-year decline in net profit of approximately 10%, primarily due to challenges in the Oil-to-Chemicals (O2C) sector. Furthermore, net sales are anticipated to decrease by a slight 0.6%. Analysts forecast a significant 27% year-on-year drop in O2C EBITDA, impacted by subdued performances in refining and petrochemical operations. Nonetheless, strength in consumer businesses and upstream oil and gas (ONG) segments could counterbalance these setbacks, with retail expected to see EBITDA growth of about 6% despite potential earnings pressure from store rationalization and seasonal monsoon effects. Meanwhile, HCL Technologies is projected to achieve a revenue increase of between 7% and 9.2% year-on-year, with estimates positioning revenue figures between Rs 26,672 crore and Rs 28,710 crore for Q2 FY25. Net profit growth is anticipated within a range of 4.9% to 15%, translating to a profit after tax (PAT) of Rs 3,832 crore to Rs 4,097 crore. The varying estimates from different brokerages highlight a consensus on positive performance, with Nuvama taking a conservative stance while PhillipCapital remains optimistic.
The article discusses the upcoming earnings announcements from significant companies, focusing specifically on the expectations for RIL and HCL Technologies in Q2. RIL, under the leadership of Mukesh Ambani, faces challenges due to the weak performance of its O2C segment; however, strong results from consumer and ONG sectors may provide some relief. Similarly, HCL Technologies is anticipated to show positive growth in both revenue and profit, reflecting a strong performance despite market uncertainties.
In conclusion, the results from RIL and HCL Technologies are highly anticipated, particularly in light of current market conditions. RIL may experience a decrease in profit due to sector-specific challenges, while HCL Technologies is expected to post solid revenue growth, demonstrating resilience in its operations. Investors will be keenly observing these earnings reports for further insights into the respective companies’ performances and market strategies.
Original Source: m.economictimes.com
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