Indian market's big boy, Reliance Industries is scheduled to announce its third quarter results on January 20. The oil-to-retail conglomerate is expected to report operationally better results led by strength in GRMs, lower windfall tax impact, higher gas realization, steady telecom and retail performance.
Prabhudas Lilladher expects the company to report a profit after tax (PAT) of ₹94,282 crore - a growth of 12.8% year-on-year - on sales of ₹13,24,585 crore - an year-on-year growth of 7.3%.
The brokerage cut its fiscal year 2023 earnings estimate by 13% due to lower petrochemicals margins on the back of Chinese demand volatility. “We also increase finance charges for FY23-25E given continued exchange rate depreciation; FY25 EPS is cut 3.5%," it said.
For Jio, Prabhudas Lilladher expects RIL Q3 revenue to grow to ₹23,480 crore (+4.3% QoQ). EBITDA is expected to follow to ₹12,110 core, (+5.5% QoQ). We have also factored in ARPU of ₹182 (+2.7%QoQ) and subscriber addition of 5 million in Q3 (7.7mn in Q2).
Meanwhile, Sharekhan by BNP Paribas has named RIL, IGL, MGL and GSPL as its preferred picks in oil & gas segment.
“We prefer RIL among downstream players, given its strong growth outlook for consumer-centric business (retail and Jio) and likely further value unlocking in digital and retail businesses would add to shareholders’ returns in the coming years," the brokerage said in a report.
(With inputs from agencies)