Q2 Results: Reliance Industries, HCL Tech, Angel One to Announce Earnings on October 14, 2024

Q2 Results: Reliance Industries, HCL Tech, Angel One to Announce Earnings on October 14, 2024
  • Reliance Industries, HCL Technologies, and several other key companies will release their Q2 results on October 14, 2024.
  • Reliance Industries is expected to post muted earnings, with a focus on its O2C segment performance.
  • HCL Technologies is expected to report steady growth with robust demand for digital services.
  • Other companies like Angel One and Oriental Hotels will also announce their earnings, drawing attention from investors.
  • The overall market sentiment hinges on the results, especially for Reliance Industries.

The earnings season for the second quarter of fiscal year 2024-25 is in full swing, and on October 14, investors will closely watch the financial performance of some of India’s most prominent companies, including Reliance Industries Ltd. (RIL), HCL Technologies, and Angel One. These companies, along with others, are set to reveal their results, and the market is abuzz with anticipation. Let’s delve into what investors can expect from these market giants.

Reliance Industries Set for a Subdued Quarter

Reliance Industries, the flagship company of billionaire Mukesh Ambani, is expected to post its financial results for the July-September quarter on Monday, October 14. In a regulatory filing, RIL confirmed that its Board of Directors would review and approve both standalone and consolidated unaudited financial results for Q2 FY2024-25.

While Reliance has been a market leader across multiple sectors, this quarter’s results are anticipated to be weaker than usual. According to analysts, the company’s net profit could dip by up to 10% year-on-year, largely due to challenges in its oil-to-chemicals (O2C) business, which remains a core component of its operations.

Reliance’s shares have also underperformed in recent weeks, slipping by more than 7% over the past month, as the Nifty 50 index fell from its record highs. The primary driver behind this underperformance has been the slump in the global refining and petrochemical markets, coupled with reduced demand in the O2C segment.

Weak O2C Segment Drags Performance

The O2C segment, which has long been a revenue generator for RIL, is expected to show a year-on-year EBITDA decline of up to 27%. Global market weakness and subdued margins in the refining and petrochemical sectors are likely to be the primary culprits. Analysts forecast that consolidated EBITDA for the company could dip by 7%, reflecting this weaker performance.

Despite the O2C slowdown, Reliance’s consumer-facing businesses, including retail and telecommunications, are expected to help cushion the blow. Jio Platforms, the company’s telecom arm, is forecast to post a healthy increase in EBITDA, largely driven by recent tariff hikes and an expanding customer base. The retail segment could also see growth, although seasonal factors like the monsoon may temper overall gains.

HCL Technologies Expected to Maintain Steady Growth

HCL Technologies, one of India’s top IT services providers, is also scheduled to announce its Q2 results on October 14. The company is expected to deliver a stable performance, backed by robust demand for its digital transformation services and cloud solutions. While HCL’s exposure to global markets, particularly in Europe and North America, may pose some risks, analysts expect the company’s diversified portfolio to help maintain steady earnings.

HCL has been capitalizing on the growing demand for cloud computing, AI-driven services, and cybersecurity, all of which have seen significant upticks in the post-pandemic era. Despite economic headwinds in key international markets, the company’s investments in emerging technologies are expected to keep it on a growth trajectory.

Angel One, Oriental Hotels, and Other Key Companies in Focus

Besides Reliance and HCL, several other companies are set to release their earnings on October 14, including Angel One, Oriental Hotels, and Sterling and Wilson Renewable Energy.

Angel One, a leading player in the financial services sector, is expected to post a positive quarter, with strong growth in brokerage services and increased participation in equity markets. The company’s digital-first approach has enabled it to capture a larger share of the retail trading market, which is booming as more individual investors enter the stock market.

Meanwhile, Oriental Hotels, a subsidiary of The Indian Hotels Company Limited, is likely to benefit from a resurgence in travel and tourism. After several years of pandemic-related disruptions, the hospitality sector is rebounding, and Oriental Hotels’ strategic locations across India could position it well for future growth.

Sterling and Wilson Renewable Energy and Alok Industries are also set to report their earnings. Sterling and Wilson, in particular, has been a key player in India’s renewable energy push, and investors will be keen to see how it has navigated the challenges posed by supply chain disruptions and fluctuating raw material costs.

Investor Sentiment Hinges on Reliance Industries

Given its size and influence, Reliance Industries’ results will be the focal point of attention. Investors are particularly keen to hear management commentary on the state of the O2C business and any strategic updates related to its telecom and retail segments.

Additionally, the market is speculating about the potential announcement of a bonus issue or other shareholder rewards, a topic that has been circulating since the company’s Annual General Meeting (AGM) earlier this year.

With Reliance’s shares trading under pressure, any signs of optimism or clarity from the management could provide a much-needed boost to investor sentiment. Analysts suggest that while the Q2 numbers may not be stellar, the longer-term outlook for Reliance remains positive, particularly given its focus on digital transformation and clean energy initiatives.

Conclusion

As the second quarter earnings season progresses, all eyes are on the heavyweights set to announce their results on October 14, 2024. While Reliance Industries is expected to post subdued numbers due to its O2C segment struggles, its telecom and retail arms could provide some relief. HCL Technologies is likely to maintain steady growth, and Angel One and Oriental Hotels are also poised for positive performances.

Investors will be paying close attention not just to the raw numbers but also to the strategic outlooks presented by these companies, especially in the context of ongoing global economic challenges.