RIL Q3 results today: What to expect from the conglomerate; how to trade the stock?
Reliance Industries is scheduled to release its December quarter earnings after market hours on Friday.
In the run-up to the earnings, some bit of caution in the market is set to prevail, as investors wouldn’t want to keep open positions ahead of the weekend.
So far in January, shares of the index major have gained nearly 6%. The earnings and the outlook that RIL will offer will decide the sustainability of the gains in the counter.
Let’s look at the major things to watch out for in the earnings scorecard of the toy-to-telecom conglomerate.
Q3 Consolidated earnings
RIL is expected to see a year-on-year (YoY) growth in earnings, aided by the steady performance of the digital and retail business verticals. However, the growth is expected to be in single digits because of a weak show by the oil-to-chemicals (O2C) business.
Consolidated revenue is likely to rise 5% YoY to Rs 2.31 lakh crore, but fall about 2% sequentially, according to the average of estimates given by nine brokerage firms.
Consolidated net profit is expected to grow 9.3% YoY to Rs 17,257 crore, but drop nearly 1% sequentially.
Earnings before interest, taxes, depreciation and amortization or EBITDA is expected to increase 4% YoY to Rs 40,030 crore, but fall sharply by 11% sequentially.
Segment Performance
Reliance Jio Infocomm is expected to report good numbers, aided by a further rise in subscribers and improvement in the average revenue per user (ARPU).
Analysts expect Jio to net add 9.5-10 million subscribers in the last quarter. Brokerage Prabhudas Lilladher expects ARPU to improve 1.6% sequentially to Rs 185.
Similarly, the retail business, which is the second largest contributor to RIL’s topline and EBITDA, is also expected to have
