Reliance Industries Q4 Results Preview: Profit, Revenue To Rise; Ebitda To Be Muted
The company's consolidated net profit may see a 14.25% jump sequentially to Rs 19,726.9 crore in Q4, according to Bloomberg analysts.
Reliance Industries Ltd.'s fourth-quarter revenue and profit are likely to rise sequentially on strong performance in the refining, telecom and retail segments. However, operating profit and margin are likely to be subdued.
The company's consolidated net profit may see a 14.25% jump sequentially to Rs 19,726.9 crore for the quarter ended March 2024, according to the consensus of analysts tracked by Bloomberg.
"Fuel refining profitability remains key to upcoming earnings; we expect a 6% rise QoQ in net profit for RIL," brokerage firm Morgan Stanley said in a report.
The consolidated revenue of India's largest company by market value may rise 4.96% sequentially to Rs 2.4 lakh crore, on higher sales in the refining, telecom and retail segments.
However, the company's operating profit—or earnings before interest, tax, depreciation, and amortisation—is likely to drop by 5.2% sequentially to Rs 42,191 crore. The operating margin is seen to be lower by 190 basis points to 17.9%. Ebitda is likely to rise 2.2% year-on-year, according to consensus of analysts' estimates tracked by Bloomberg.
Oil-To-Chemicals
The oil-to-chemicals Ebitda is expected to reach a peak in the fourth quarter (highest since June 2022), despite still sluggish margin in chemicals, a Morgan Stanley report said. “We estimate GRMs to rise to over $12 per barrel, despite reduced discounts on Russian oil," it said.
Reliance Jio
Jio is likely to report strong numbers, led by higher subscriber additions and improved average revenue per user. “We expect net subscriber additions to be strong at 10 million and average revenue per user to be stable at Rs 183 per month, driving a 3% QoQ increase in Ebitda to Rs 14,700 crore,” UBS said in a report.
Retail
The retail segment's revenue and operating numbers are likely to be boosted on account of store expansion and higher footfalls. “We estimate YoY/QoQ gross revenue growth of 22%/1%, aided by store expansion done over the past two years, with stable Ebitda margins of 7.6%,” UBS said.