What To Expect From Reliance Q4 Results? A Preview

Reliance Industries is expected to post a 17% growth rate in operating profit for the January-March quarter on a consolidated basis, according to a Moneycontrol poll. The oil major is going to declare its earnings today after market hours. The company's stock weight on the Nifty index is of 10.34%.

According to the Reliance Q4 results preview, operating profit is estimated to come in at Rs 36,805 crore, 17% higher over last year. As per estimates, topline will grow in double digits while bottom line will grow in single digits, year-on-year (YoY). Sequentially, both will grow in single digits.

Further, the consolidated revenue would be seen at Rs 2.26 lakh crore with a net profit at Rs 16,573 crore, roughly up by 1.2% and 4% respectively.

According to the Moneycontrol report, the growth in earnings before, interest, taxes, depreciation and amortisation (EBITDA) will largely be due to its strong oil-to-chemicals (O2C) segment.

Resilient gross refining margins, improvement in petchem margins on the back of China reopening and higher exploration and production (E&P) profitability on slightly higher gas production will drive the operating performance, said analysts.

Net profit growth is expected to rise only 2% YoY as the base quarter had no impact on the windfall tax. Foreign broking firm Jefferies estimates 28% YoY jump in taxes at Rs 5,625 crore.

Also note that the windfall taxes on crude were revised downwards several times since their imposition in July 2022. Therefore, its impact would have been realised in bottomline in the previous quarters.

Retail & Telecom

As a part of the diversified conglomerate, retail and telecom arm have proved to power growth for the parent company are expected to continue their steady run. It is expected that Reliance Retail's topline is likely to cross the Rs 70,000-crore with a 35% YoY EBITDA growth at Rs 5,003 crore because of increased store footprint and operating leverage.

During the course of the quarter, the company made rapid strides in the consumer space. It did do launch and relaunch products. Independence, was launched in Gujarat and Campa was relaunched after acquiring it from its owner Pure Drinks in August 2022.

The company's telecom arm Jio would likely deliver an EBIDTA growth of 14% YoY to the tune of Rs 12,803 crore for the March quarter, as per media sources.

Meanwhile, Kotak Institutional Equities has pegged subscriber addition at 5.7 million, ICICI Securities sees it at 6.5 million and the average revenue per user (ARPU) is expected to remain flat on a sequential basis at Rs 179 amid lower number of days.

Stock Price Movement

The latest market price of Reliance Industries is Rs 2,345 per share, up by mere 0.01%, on intraday basis, while writing the copy. Its 52-week high is at Rs 2,855 per share and 52-week low is Rs 2,180 per share. In last one year, the stock has plunged by 15.71% while in three years, it has risen exponentially by 91.44%.