NEW DELHI: Reliance Industries, the most valuable company in India, is likely to report at least 40 per cent year-on-year growth in net revenue in March quarter, while analysts’ projections for profit growth vary between 30-100 per cent.
The company is scheduled to announce its numbers on Friday.
RIL’s growth will be driven by business pickup in the oil-to-chemical and retail segment. The company is also likely to report sharp improvement in refining margins amid rocketing crude oil prices.
Motilal Oswal said it expects a consolidated Ebitda of Rs 34,500 crore, up 47 per cent year-on-year (YoY) and 16 per cent quarter-on-quarter (QoQ), led by growth in the O2C and retail segments.
“We expect an Ebitda of Rs 16,800 crore, up 65 per cent YoY and 21 per cent QoQ for the O2C segment, Rs 10,700 crore, up 29 per cent YoY and 13 per cent QoQ for Reliance Jio, and Rs 45,000 crore, up 25 per cent YoY and 18 per cent QoQ for the retail segment,” said the broker in a note.
The improving economy especially after unlocking is likely to benefit Reliance’s retail venture. At the same time, refining margins will increase driven by improvement in product cracks, especially diesel.
According to Kotak Securities RIL’s standalone Ebitda is likely 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 petrochemical margins.
“We expect Ebitda for Jio to increase 5 per cent QoQ led by higher ARPUs, 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,” the broker said.
In the December-quarter the oil-to-telecom major had reported a 37.90 per cent YoY rise in net profit, aided by one-time exceptional gains. The consolidated revenue from operations had grown 54.25 per cent.
Thanks to superb performance, along with positive analyst commentary, shares of the company have outperformed the market. The stock recently hit all-time high levels, shattering records.
Analysts at YES Securities said RIL is expected to report YoY and QoQ improvement in earnings on account of stronger refining margins, offset partially by weaker petrochemical margins in the March quarter.
“Telecom segment is expected to benefit from higher ARPU realisation and Retail segment from sales traction driven by growth in network,” it added.
For all the latest Business News Click Here
For the latest news and updates, follow us on Google News.
Denial of responsibility! NewsBit.us is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.
