RIL Q4 preview: Mukesh Ambani-led company set to report record profit

India's biggest conglomerate Reliance Industries (RIL) is all set to report a record profit in January-March quarter over a low base. The company is expected to record 2-3 per cent rise in total revenue for the quarter on a year-on-year basis. As per Kotak Securities, Mukesh Ambani-led company will record about 2 per cent growth in consolidated sales at Rs 1.39 lakh crore compared to 1.36 lakh crore sale in the same quarter last year.

The company's net profit will rise to Rs 13,248 crore, which is about 109 per cent growth than Rs 6,348 crore net profit in Q4FY20. "We expect Ebitda for Jio to rise Rs 600 crore sequentially led by a rise in subscriber base to 42.1 crore (up 1 crore QoQ) and see ex-IUC ARPU rising to Rs 144 per user. We see Ebitda for retail rising Rs 400 crore sequentially led by sustained recovery in revenues and margins," Kotak Securities, The Economic Times reported.

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JM Financial said RIL's Ebitda could rise per cent sequentially. Overall, RIL's retail business and Jio will drive the growth tally for the company. JM Financial said RIL could post Q4 net profit at Rs 13,150 crore, which is about 107 per cent than Q4FY20. The company's digital Ebitda will likely rise 3.1 per cent on a quarter-on-quarter basis as Jio continues to add more subscribers to its base.

Reliance Industries Limited had reported 12.5 per cent year-on-year growth in consolidated net profit at Rs 13,101 crore for the third quarter ended December 31, 2020, on the back of strong rebound across all businesses. The company posted a net profit of Rs 11,640 crore in the corresponding period of last year.

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Consolidated revenue of Mukesh Ambani-led oil-to-telecom conglomerate fell 22 per cent to Rs 128,450 crore in the quarter under review as compared to Rs 160,447 crore in the year ago period. Reliance Jio had seen its consolidated profit rising 15.5 per cent sequentially to Rs 3,489 crore and revenue by 5.3 per cent QoQ to Rs 19,475 crore. Reliance Retail reported 88.1 per cent quarter-on-quarter growth in consolidated net profit at Rs 1,830 crore for the third quarter ended December 31, 2020.

Meanwhile, RIL share was trading flat ahead of the conglomerate's Q4 earnings scheduled to be announced today. Share of RIL was trading 0.03% lower at Rs 2,022 on BSE. The stock has gained 6.35% in the last 5 days. The stock was trading higher than 5 day, 20 day and 100 day moving averages but lower than 50 day and 200 day moving averages.

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