Oil-to-telecom-to-retail behemoth Reliance Industries (RIL) will release its March quarter scorecard on April 21.
The company is expected to see a mixed quarter. Other than the numbers, investors will focus on growth in retail store additions and pricing updates on telecom.
Brokerage firm Motilal Oswal Financial Services expects RIL's net sales to clock a minor gain of 0.8 percent year-on-year (YoY). Adjusted profit after tax (PAT) may fall 0.3 percent YoY.
Motilal expects RIL's consolidated EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) to come to the tune of ₹36,700 crore, up 17 percent YoY and 4 percent quarter-on-quarter (QoQ), primarily driven by the oil-to-chemical (O2C) segment.
Motilal expects RIL's EBITDA at ₹16,200 crore, up 11 percent YoY and 8 percent QoQ, for the O2C segment.
Key monitorables include further clarity on the ₹75,000 crore announcement in the new energy business, growth in retail store additions, and any pricing action in telecom, Motilal said.
For Reliance Jio, the brokerage firm expects net revenue to rise 12.4 percent YoY while PAT may grow 15 percent YoY. EBITDA margin is likely to improve 40bps (basis points).
Motilal expects Jio's ARPU (average revenue per user) to improve to ₹179 with subscribers at 44 crore.
Brokerage firm HDFC Securities expects RIL’s consolidated EBITDA to increase to ₹37800 crore, up 20 percent YoY and 7 percent QoQ.
Oil-to-chemicals (O2C) EBITDA/tonne of crude processed is estimated to increase by about 4 percent QoQ, owing to an improvement in petroleum product cracks and an improvement in petchem margins QoQ.
"We expect EBITDA to increase by 14 percent YoY to ₹4,210 crore from its retail segment. We have estimated about 50 lakh subscriber addition and an ARPU of ₹179 in Q4," said HDFC Securities.
Brokerage firm Kotak Institutional Equities sees a 9.4 percent YoY change in RIL's net sales and a 1.6 percent YoY change in its adjusted PAT.
EBITDA margin may improve 97 bps YoY, said Kotak.
"We expect EBITDA for (1) Jio to increase 2 percent QoQ, largely driven by 5.7 mn overall net adds, blended ARPU likely flat QoQ at ₹178 and (2) retail revenue/EBITDA to increase by nearly 2 percent QoQ, driven by increased store footprint, and benefits of operating leverage," said Kotak.
Disclaimer: The views and recommendations given in this article are those of the broking firms. These do not represent the views of MintGenie.
