Reliance Industries Limited (RIL) is set to announce its Q3 FY25 results later today, with investors and analysts closely monitoring the performance of the oil-to-telecom conglomerate. The results are expected to show mixed trends, with strong growth in telecom likely offset by muted retail growth and challenges in the energy segment.
Key Expectations:
- Revenue Growth:
- YoY sales growth is estimated between 3.7% and 5.4%, with revenues ranging from ₹2,33,338 crore to ₹2,44,248 crore, depending on the brokerage.
- Net Profit:
- YoY net profit is projected to decline by 4.6%-4.7%, landing at ₹16,461 crore to ₹16,475 crore.
- EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization):
- Consolidated EBITDA is expected to rise 9% QoQ to ₹42,500 crore, driven by robust telecom performance and improved refining margins.
Segmental Highlights:
Telecom (Jio):
- EBITDA: Estimated at ₹16,170 crore, up 8% QoQ, driven by a sharp rise in Average Revenue Per User (ARPU) to ₹209, compared to ₹195 in Q2.
- Recovery in subscriber additions is also anticipated.
Retail:
- Core EBITDA: Likely to rise 5% QoQ to ₹6,380 crore, supported by higher footfalls and a 7% YoY increase in revenue per square foot.
- Overall retail sales growth is projected at 5% YoY, including connectivity.
Oil-to-Chemicals (O2C):
- EBITDA: Estimated at ₹13,600 crore, reflecting a 10% QoQ increase, underpinned by improved refining margins of $9.3 per barrel. However, YoY margins are expected to remain subdued due to weak petrochemical performance.
Key Areas to Watch:
New Energy Investments: Updates on the ₹75,000 crore investment plans in new energy segments will be crucial.
- Retail Expansion: Growth in retail store additions and footfall trends will be scrutinized.
- Telecom Pricing: Any pricing actions or strategy changes in the telecom segment could influence investor sentiment.
Brokerage Insights:
- Goldman Sachs: Expects Jio Infocomm’s revenues to grow 19% YoY to ₹30,100 crore, with a reported ARPU of ₹209.
- Nomura India: Highlights growth in consumer-facing businesses, driven by Jio and modest retail performance.
TOPICS:
Reliance Industries