Q3FY23 Preview: Reliance Industries: Sales seen at Rs2,415,578 million, PAT at Rs156,635 million

  • 19 Jan, 2023 |
  • 8:11 AM
  • Strength in Jio, Retail to compensate for weakness in O2C

Result date: 20th January, 2023

Recommendation: Buy

Target price: Rs2,914

Reliance Industries (RIL) could witness weak performance in its O2C business, which could be offset by healthy show of the consumer facing businesses – Jio and Retail. Analysts at IIFL Securities expect RIL’s consolidated earnings to grow 15% sequentially, on the back of: 

  • 6% sequential improvement in the O2C business – refining gains offsetting weakness in Petrochemicals; analysts at IIFL Securities expect the middle distillate cracks and complexity of the refining unit cushioning fall in Petchem earnings
  • 10% sequential rise in E&P EBITDA on price hike of 26% QoQ
  • Retail registering 5% sequential growth due to sales growth mainly, as EBITDA margins likely to remain broadly unchanged. 
  • 5% sequential increase in Jio’s EBITDA. The quarter will also witness higher interest costs (INR depreciation + higher interest rates + higher borrowings). 

As compared to the year-ago quarter however, Profit After Tax (PAT) will fall 16%. 

Important management insights to watch out for:

  • Further clarity on Rs750 billion investments in the new energy business
  • Growth in Retail store additions
  • Pricing action in Jio


Rs Million

December 2022 estimates







Source: IIFL Research


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