Reliance Industries Q3FY22 Preview: Consolidated revenue seen at Rs1,787,791 million, PAT at Rs144,088 million

21 Jan 2022 , 08:11 AM

Result date: 21st January, 2022
Recommendation: Buy
Target price: Rs. 2,732
(Source: IIFL Research)

Reliance Industries (RIL) is set to report healthy growth in consolidated revenue and PAT for the quarter ending December 31, 2021. Growth will be led by strong show of the refining segment and recovery in retail segment.

The Oil-To-Chemicals segment’s operating profit could improve on a sequential basis on the back of increase in key petrochemical spreads, prices and refining margin. RIL’s telecom business, Reliance Jio, continued to gain market share from peers, particularly Vodafone Idea. Amid a growing subscriber base and tariff hikes, its average revenue per user could grow 3-4% on a sequential basis. Some gains from the tariff hikes will flow into the fourth quarter. Healthy festive demand in Q3, easing restrictions around mobility are expected to drive improvement in performance of RIL’s retail business.

Important management insights to watch out for:

– Demand trends across key businesses

– Margin drivers

Rs. Million	December 2021 estimates
Revenue	1,787,791
EBITDA	278,233
YoY change	29%
QoQ change	7%
PAT	144,088
YoY change	10%
QoQ change	5%

Source: Company, IIFL Research