Reliance Industries To Come With Results: Know What Are the Markets Expecting?

The Fortune 350 Company, The largest private sector company in India is set to report its Q4 results today and will also be declaring the dividend. The stock has given a decent 26% return to its investors, who are eagerly waiting for the earnings of the Conglomerate ahead

What are the Markets Expecting?

The streets are expecting a rise of around 10-12% in Revenue on a YoY Basis, the EBITDA is also expected to climb 7-8% on a YoY Basis, major factors governing this strong performance include a strong performance in the O2C(Oil to Chemical) segment and on the other hand, stable and sustained growth is expected from Reliance Jio. Instead of these, Net Profit for this quarter is expected to slip by 5% amid increased depreciation and high tax rates.

Brokerages on Reliance Industries results

ICICI Securities is expecting a strong performance in the O2C segment and projects $1/bbl QoQ improvement in Gross Refined margins for the conglomerate, also says that EBITDA for Reliance’s Jio would be increasing 2% on a QoQ basis and the overall EBITDA is expected to rise by 5% QoQ.  Prabhudas Lilladher also expects improvements in refining margins for the Conglomerate, they are expecting, the company to report a profit drop of around 10.7% on a YoY basis at Rs.17,230 crore, with the sales rising around 13.7% YoY basis to Rs.2,42,020 crore.

Check: Mukesh Ambani Group Stocks

Reliance Industries Stock Performance

The NIFTY50 Giant has given quite decent returns of around 26% in the past 1 year in line with the 25.66% returns of the benchmark index, NIFTY50. The stock is up by 30.5% in the past 6 months and has made a 52-week high of Rs.3024.90 on 4th March 2024. Currently, the stock trades at Rs. 2949.25 a piece as of 22nd April before its Q4 earnings, Today’s Q4 earnings are much anticipated by investors.

Conclusions: The Largest private sector of India is expected to have increasing revenues for this quarter factored by robust growth in O2C Business, EBITDA margins are also expected to rise with a fall in Net Profit driven by an increase in depreciation and high tax rates. The stock of Reliance is currently up by +0.3% and is trading at Rs.2948 a piece.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.