Q4FY23 Preview: Reliance Industries: PAT seen at Rs 179.4 billion

20 Apr 2023 , 10:19 AM

Result date: 21^st April, 2023

Recommendation: Buy

Target price: Rs 2,861

Reliance Industries (RIL) could post 11% growth in Profit After Tax (PAT) as compared to the year-ago quarter. Scale-up in Jio and Retail businesses will drive this performance. Higher interest outgo, though, could partly offset these gains. 

The company’s gross refining margin could improve sequentially. Jio’s performance is estimated to be strong on the back of healthy subscriber additions in the quarter, even as ARPU could grow at a lower pace owing to lower number of days in the quarter. Higher network expenses could pull down EBITDA margin of Jio. Robust addition of new stores could drive performance of RIL’s retail business during the quarter.

	March 2023 estimates	QoQ change	YoY change
Profit After Tax (Rs. bn)	179.4	14%	11%

Source: IIFL Research