Q3FY24 Preview: Reliance Industries: Revenue seen at Rs. 2,406,800 million, PAT at Rs. 165,422 million

17 Jan 2024 , 11:34 AM

Result date: January 19, 2023

Recommendation: Buy

Target price: Rs. 2,714

Analysts at IIFL Capital Services believe that Reliance Industries will register 10% sequential decline in O2C EBITDA (Lower GRMs and maintenance shutdowns). Realizations of the E&P business could remain flat sequentially but will be offset by cost savings. Jio business could clock in 3% growth sequentially and 12% growth over the year-ago quarter. EBITDA of the retail business could grow 5% sequentially (primarily due to store ramp-up and higher footfalls). Retail business could grow 28% as compared to the year-ago quarter.

Important management insights to watch out for:

• Margin outlook in refinery and petchem
• A turn in the chemical cycle
• Traction in 5G subscribers
• Slowdown in retail investment 

Rs. Million	December 2023 estimates	YoY change	QoQ change
EBITDA	402,428	14%	(2)%
Profit After Tax	165,422	5%	(5)%

Source: IIFL Research

Segment EBITDA (Rs. Million)	December 2023 estimates	YoY change	QoQ change
O2C	146,529	5%	(10)%
Oil & Gas	49,589	28%	4%
Retail	61,226	28%	5%
Digital service	144,509	12%	3%
Others	22,000	106%	0%

Source: IIFL Research