Reliance Industries to announce Q4 results tomorrow; here’s what to expect
An assessment by YES Securities showed that RIL may report 41.70% and 30.50% year-on-year growth in revenue and net profit, respectively, in Q4FY22.
- May 5, 2022,
- Updated May 5, 2022 10:41 AM IST
Energy-to-telecom behemoth Reliance Industries (RIL) may post double-digit growth in the top line and bottom line for the quarter ended March 31 due to stronger refining margins. The company is slated to announce its financial results on May 6, Friday.
An assessment by YES Securities showed that RIL may report 41.70 per cent and 30.50 per cent year-on-year (YoY) growth in revenue and net profit, respectively, in Q4FY22. Shares of Reliance Industries traded 0.58 per cent higher at Rs 2,708.85 at around 10.10 am (IST), while the benchmark equity index BSE Sensex was up 1.43 per cent at 56,464 at around the same time.
“RIL is expected to report YoY and QoQ improvement in earnings on account of robust refining margins, offset partially by weaker petrochemical margins. Telecom segment is expected to benefit from higher Arpu (Average revenue per user) realisation and retail segment from sales traction driven by growth in network,” YES Securities said adding RIL net profit and revenue may grow 4.7 per cent and 14.50 per cent on QoQ basis.
On the other hand, Kotak Institutional Equities believes that RIL’s adjusted profit after tax and net sales may grow 32 per cent and 43.80 per cent, respectively, on YoY. It further added that Ebitda may increase 34.60 per cent on a YoY basis and 5.8 per cent QoQ.
“We expect RIL’s standalone Ebitda to increase modestly by 3 per cent QoQ reflecting improvement in underlying refining margins and likely higher volumes for both segments, which will be partly offset by a QoQ decline in petchem margins. We expect Ebitda for Jio to increase 5 per cent QoQ led by higher Arpu, which will be partly offset by a decline in the EoP subscriber base and retail to increase by 9 per cent QoQ driven by sustained strong performance across business segments,” Kotak Institutional Equities said in a report.
The brokerage is positive on Reliance with a fair value of Rs 2,925, indicating an upside of 8 per cent from the current market price.
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Energy-to-telecom behemoth Reliance Industries (RIL) may post double-digit growth in the top line and bottom line for the quarter ended March 31 due to stronger refining margins. The company is slated to announce its financial results on May 6, Friday.
An assessment by YES Securities showed that RIL may report 41.70 per cent and 30.50 per cent year-on-year (YoY) growth in revenue and net profit, respectively, in Q4FY22. Shares of Reliance Industries traded 0.58 per cent higher at Rs 2,708.85 at around 10.10 am (IST), while the benchmark equity index BSE Sensex was up 1.43 per cent at 56,464 at around the same time.
“RIL is expected to report YoY and QoQ improvement in earnings on account of robust refining margins, offset partially by weaker petrochemical margins. Telecom segment is expected to benefit from higher Arpu (Average revenue per user) realisation and retail segment from sales traction driven by growth in network,” YES Securities said adding RIL net profit and revenue may grow 4.7 per cent and 14.50 per cent on QoQ basis.
On the other hand, Kotak Institutional Equities believes that RIL’s adjusted profit after tax and net sales may grow 32 per cent and 43.80 per cent, respectively, on YoY. It further added that Ebitda may increase 34.60 per cent on a YoY basis and 5.8 per cent QoQ.
“We expect RIL’s standalone Ebitda to increase modestly by 3 per cent QoQ reflecting improvement in underlying refining margins and likely higher volumes for both segments, which will be partly offset by a QoQ decline in petchem margins. We expect Ebitda for Jio to increase 5 per cent QoQ led by higher Arpu, which will be partly offset by a decline in the EoP subscriber base and retail to increase by 9 per cent QoQ driven by sustained strong performance across business segments,” Kotak Institutional Equities said in a report.
The brokerage is positive on Reliance with a fair value of Rs 2,925, indicating an upside of 8 per cent from the current market price.
Also read: Multibagger returns in just 15 sessions: This stock zoomed 101% since market debut
Also read: Over 23,000% return in 10 years! Yes Securities bullish on this multibagger; sees more upside