Reliance Industries Set to Showcase Strong Q4 FY24 Results with Focus on Telecom and Retail Growth
Today’s focus in the stock market centers around Reliance Industries, led by billionaire Mukesh Ambani, as the company prepares to unveil its financial performance for the fourth quarter of fiscal year 2023-24 (Q4 FY24) alongside its dividend declaration for the year. Analysts and investors are eagerly anticipating these results, with expectations pointing towards robust revenue growth and improved operational performance, particularly driven by Reliance’s telecom and retail businesses.
Reliance Industries, a conglomerate spanning from oil to telecom, is poised to report strong revenue figures for the March quarter, buoyed by a notable rebound in its Oil-to-Chemicals (O2C) segment, led by enhanced gross refinery margins (GRMs). According to several brokerage firms and market analysts, concerns over Reliance’s net debt are considered exaggerated, given its industry-leading capabilities across diverse business sectors that are expected to fuel a 14-15% compound annual growth rate (CAGR) in earnings per share (EPS) over the next 3-5 years.
Let’s delve into the anticipated figures and projections outlined by leading brokerages for Reliance Industries’ Q4 FY24 results:
Elara Capital forecasts an 11% year-on-year (YoY) growth in consolidated EBITDA, with standouts in retail and telecom. Equirus Capital anticipates a sequential improvement driven by O2C earnings, while ICICI Securities projects a sharp uptick in the OTC segment, propelled by enhanced GRMs and refining throughput. JM Financials predicts EBITDA growth primarily due to O2C performance, offset by declines in Exploration & Production (E&P).
Nuvama Institutional Equities expects an overall 8% YoY increase in EBITDA, highlighting strong contributions from gas and retail but tempered by challenges in the O2C sector. Motilal Oswal Financial Services, on the other hand, foresees flat consolidated EBITDA YoY, emphasizing key strategic areas like new energy initiatives and telecom operations.
Reliance’s financial narrative for Q4 FY24 is expected to be underpinned by robust performances in retail and telecom, despite headwinds in refining and petrochemicals. Elara Capital’s revenue estimate of ₹2,32,627.3 crore and a net profit projection of ₹20,780 crore for the quarter reflect this positive sentiment.
Elara Capital’s insights shed light on the anticipated growth drivers within Reliance’s various segments:
- Standalone EBITDA growth in refining, petrochemicals, and Exploration & Production (E&P)
- Substantial growth in retail EBITDA by 42%
- Strong digital services (telecom) EBITDA growth by 11%
Meanwhile, Equirus Capital underscores the importance of margin outlooks in refining and petrochemicals as key indicators to watch. JM Financials emphasizes the expected growth in O2C EBITDA due to improved GRMs and highlights potential declines in E&P EBITDA due to profit-sharing adjustments.
Nuvama Institutional Equities predicts a strong performance in gas and retail, with a decline in O2C, while Motilal Oswal Financial Services emphasizes the need for clarity on new energy initiatives and pricing strategies in telecom.
Reliance’s diversified portfolio, marked by its prominent presence in retail and telecom, is expected to play a crucial role in driving earnings growth, mitigating challenges posed by the refining and petrochemicals sectors. The conglomerate’s strategic initiatives in new energy, coupled with continued expansion in retail and telecom, remain focal points for investors seeking clarity on Reliance’s future trajectory.
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In conclusion, Reliance Industries’ impending Q4 FY24 results and dividend announcement are poised to provide crucial insights into the company’s performance across its diversified business lines. Despite certain sectoral challenges, particularly in refining and petrochemicals, Reliance’s retail and telecom segments are expected to sustain strong growth momentum, reflecting the conglomerate’s resilience and adaptability in navigating dynamic market conditions. Investors and analysts alike are eagerly awaiting these disclosures to gauge Reliance’s trajectory and evaluate its strategic roadmap moving forward.
