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Reliance Q1 Result: What is Good, Bad and Ugly?

Reliance Industries' Q1 results were a mixed bag, with positive aspects in revenue growth countered by a decline in net profit.

The Good
 * Revenue grew 12% year-on-year, driven by higher realizations in the oil-to-chemical (O2C) business.
 * Reliance Retail, the company's retail arm, saw strong growth in both revenue and profit, indicating continued momentum in the segment.
 * Jio, Reliance's telecom arm, also reported a marginal increase in profit quarter-on-quarter.

The Bad
 * Net profit fell 5.4% year-on-year, primarily due to rising input costs. This decline disappointed some investors who had anticipated higher profits.
 * Jio's profit growth fell short of some analysts' expectations.

The Ugly
 * EBITDA margin narrowed by 1.5 percentage points year-on-year, indicating pressure on profitability.

Overall
Reliance's Q1 results paint a mixed picture. While revenue growth is a positive sign, the decline in net profit and margin compression raise concerns. Investors will be watching closely to see how Reliance navigates these challenges in the coming quarters.

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