For the April-June period, RIL
reported a profit before tax (PBT) of Rs 8,542 crore against Rs 14,366 crore reported during the same quarter last year. The company's net profit, however, rose about 31 per cent to Rs 13,233 crore against Rs 10,104 crore in the same quarter last year. CLICK TO READ FULL REPORT
Net sales in the June quarter fell 44 per cent to Rs 88,253 crore against Rs 1.57 trillion in the same quarter a year ago.
Further, the company's telecom arm, Reliance Jio, reported a pre-tax profit of Rs 3,375 crore
in the April to June quarter of financial year 2020-21, driven by 33.7 per cent growth in revenue. In the same period last year, the operator had reported pre-tax profit of Rs 1,369 crore, showing a jump of almost 147 per cent.
Analysts at Prabhudas Lilladher, in a result review note, said, "RIL
with its stated intention to monetise and forge global partnership across businesses, is well-positioned to incubate new business and pursue inorganic opportunities given its liquid balance sheet. Despite the sharp run-up in stock prices (+140 per cent in the last 4 months), we believe positive news
flow on global partnerships or stake sale is likely to keep valuations at an elevated level." The brokerage has maintained a "BUY" rating on the stock with a revised target price of Rs 2,170 (Rs 1,828 earlier).
Sharekhan, too, has a "BUY" rating on RIL
stock with the target price of Rs 2,400. The brokerage notes that the recent fund-raising has strengthened RIL’s balance sheet (become net debt-free) and potential monetisation of the stake in retail business and likely listing of Jio could create long-term value for investors.