RIL shares dip ahead of Q4; key things to watch out for | Mint
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Business News/ Markets / Stock Markets/  RIL shares dip ahead of Q4; key things to watch out for
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RIL shares dip ahead of Q4; key things to watch out for

Index heavyweight Reliance Industries (RIL) will detail its earnings for the March quarter after market hours today

Mukesh Ambani - Chairman & Managing Director of Reliance Industries Ltd.Premium
Mukesh Ambani - Chairman & Managing Director of Reliance Industries Ltd.

Shares of Mukesh Ambani-led Reliance Industries (RIL) edged higher in Friday's trade at 2353.90 versus the previous day close of 2345, but could not sustain the gains and soon turned in the red.

The scrip was trading at 2,338.20 a piece, down 0.33 per cent at the time of writing the report. The stock has gained 3.16 per cent in the last one month, while on a year-to-date basis RIL shares fell 9.09 per cent.

The stock hit a 52-week high of 2,855 on 29 April, 2022 and 52-week low of 2,180 on 20 March, 2023.

Ahead of Q4 results, RIL shares had an average target price of 2,891, according to data from Trendlyne, which suggested a 23 per cent upside potential from the current levels.

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The oil-to-telecom major will announce its March quarter (Q4FY23) earnings post market hours today where the conglomerate is expected to log a flattish profit.

Muted growth in topline, bottomline

The growth in Reliance Industries' topline and bottomline in the fourth quarter is expected to be muted, but analysts foresee a strong double-digit growth in the operating profit.

Consolidated revenue for the quarter is seen rising a mere 1.2 per cent year-on-year (YoY) to 2.14 lakh crore, according to the average of estimates given by seven brokerages.

Brokerage Kotak Institutional Equities expects Reliance to see 1.3 per cent YoY rise in net profit at 16,455 crore. Revenue for the oil-to-telecom conglomerate may rise 9.4 per cent to 2,26,872 crore.

HDFC Securities expects Reliance to report EBITDA of 378 billion (over 20.4 per cent YoY and over 7.1 per cent QoQ), supported by a steady performance from the retail and telecom segments.

O2C EBITDA/tonne of crude processed is estimated to increase by 4 per cent QoQ, owing to an improvement in petroleum product cracks and an improvement in petchem margins QoQ. We expect EBITDA to increase by 14 per cent YoY to 42.1 billion from its retail segment. We have estimated 5mn subscriber addition and ARPU of 179 in Q4.

Nuvama sees RIL profit at 16,464 crore, up 1.6 per cent YoY. It expects sales falling 3.3 per cent to 2,00,454 crore.

Reliance Jio is expected to put up a decent show in the March quarter on the back of steady rise in subscriber additions and growth in ARPU.

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ABOUT THE AUTHOR
Meghna Sen
Business journalist tracking markets, companies, economy and crypto for Livemint. She has 6 years of experience with online and print publications. Email: meghnasen08@gmail.com
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Published: 21 Apr 2023, 11:17 AM IST
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