Reliance Industries Q4 Results Preview: PAT, Revenue Expected To Rise

Reliance Industries Ltd. (RIL), India's premier conglomerate, is gearing up to unveil its financial performance for the fourth quarter of the fiscal year 2023-24 (Q4 FY24), alongside a comprehensive overview of its annual results, on Monday, April 22.

Market analysts, anticipating an optimistic outlook, foresee an upward trajectory in both net profit and operational revenue for the quarter, driven by robust growth in the telecom, retail, and refinery segments.

Prabhudas Lilladher anticipates a 10.7% YoY decline in profit at Rs 17,230 crore for the oil-to-telecom conglomerate. Sales at PL are expected to increase 13.7% YoY to Rs 2,42,020 crore. The margin is currently 17.6%, which is 50 basis points less than 18.1 percent year over year.

"While petchem will continue to see pressure, refining margins are anticipated to increase for Reliance's standalone segment. While the retail segment should continue to perform robustly, we anticipate a 2% QoQ increase in Jio's subscriber base and a flat ARPU rise of Rs 182 per month," according to PL.

Similarly, the consolidated revenue from operations is forecast to reach Rs 2.4 lakh crore, based on estimates from 12 analysts polled by the news agency. This projection signifies a 4.96% uptick compared to the revenue recorded in the October-December quarter, highlighting the sustained momentum across RIL's diverse business verticals.

Despite a marginal sequential decline, the earnings before interest, tax, depreciation, and amortisation (EBITDA) for the quarter are expected to stand at Rs 42,191 crore, reflecting a resilient performance amid evolving market dynamics. Notably, the year-on-year growth in EBITDA is estimated at 2.2%, showcasing RIL's ability to navigate challenges and capitalize on emerging opportunities.

In the telecom sector, Jio Financial Services has reported encouraging results, with a 5.7% increase in net profit to Rs 311 crore for the quarter, signalling positive momentum in the digital services landscape.

Reflecting on RIL's performance in the third quarter of FY24, the conglomerate demonstrated commendable growth, with a consolidated net profit of Rs 17,265 crore, marking a 9% increase compared to the corresponding period in the previous year. The revenue from operations also exhibited a robust trajectory, climbing 4% year-on-year to Rs 2.28 lakh crore, underscoring RIL's resilience and strategic agility.

In anticipation of the forthcoming financial disclosures, RIL's shares have demonstrated positive momentum in the stock market. In the last trading session on April 19, the scrip settled at Rs 2,943.05 apiece, registering a modest gain of 0.49% compared to the previous day's close.

Notably, RIL shares have witnessed a year-to-date rally of 13.6%, reflecting investor confidence in the conglomerate's growth prospects and strategic initiatives. Over the past twelve months, the surge has been even more pronounced, with a notable increase of 24.81%, underscoring RIL's status as a bellwether in the Indian market.