Reliance Industries to announce Q4 results; here’s what to expect

Due to stronger refining margins, energy-to-telecom powerhouse Reliance Industries (RIL) may achieve double-digit growth in the top and bottom lines for the quarter ended March 31. On Friday, May 6, the corporation is expected to release its financial results. 
 
According to YES Securities, RIL is expected to announce revenue and net profit increase of 41.70 percent and 30.50 percent, respectively, in Q4FY22. At around 10.10 a.m. (IST), shares of Reliance Industries were trading 0.58 percent higher at Rs 2,708.85, while the benchmark equity index BSE Sensex was up 1.43 percent at 56,464 points. 
 
“RIL is likely to post YoY and QoQ earnings growth due to strong refining margins, somewhat offset by poor petrochemical margins. “The telecom segment is expected to benefit from higher Arpu (average revenue per user) realisation, while the retail segment is expected to benefit from sales traction driven by network growth,” YES Securities said, adding that RIL’s net profit and revenue may grow 4.7 percent and 14.50 percent, respectively, on a quarterly basis.

Reliance Industries

RIL’s adjusted profit after tax and net sales, on the other hand, are expected to climb 32 percent and 43.80 percent, respectively, according to Kotak Institutional Equities. It went on to say that Ebitda might rise 34.60 percent year over year and 5.8 percent quarter over quarter. 
 
“We expect RIL’s standalone Ebitda to climb by 3% QoQ, on to improved underlying refining margins and probable higher volumes for both segments, partially offset by a QoQ decrease in petchem margins.” “We expect Jio’s Ebitda to rise 5% QoQ, driven by increased Arpu, partially offset by a reduction in the EoP subscriber base, and retail to rise 9% QoQ, driven by continuing excellent performance across business verticals,” according to a study from Kotak Institutional Equities. 
 
With a fair value of Rs 2,925, the brokerage is positive on Reliance, implying an 8% upside from the current market price. 

Read more Private Sector News on India Frontline.