Reliance Q4 Results Preview: Revenue likely to slip to Rs 2,16,700 crore, margin pegged at 16.5%

RIL Q4 results preview: Reliance Industries Ltd (RIL) is all set to report its financial results for the January-March 2023 period on Friday, April 21. According to Zee Business research, the oil-to-telecom conglomerate is estimated to report a 0.2 per cent decline in its consolidated revenue to Rs 2,16,700 crore for the quarter compared with the three months to December 2022. 

The analysts peg Reliance Industries' quarterly profit at Rs 17,500 crore, which translates to an increase of 10.8 per cent on a sequential basis. 

According to the research, Reliance is likely to report a margin of 16.5 per cent for the three-month period as against 16.2 per cent for the previous quarter. Margin is a key measure of a business's ability to generate profits. The analysts estimate Reliance Industries' earnings before interest, taxes, depreciation and amortisation (EBITDA) at Rs 35,800 crore, as against Rs 35,247 crore for the December quarter. 

Reliance is widely expected to report improvement in the performance and margin of its petrochemicals unit owing to a reduction in windfall taxes. During the quarter, the government reduced the windfall tax on domestically-produced crude oil to Rs 3,500 per tonne from Rs 4,400 per tonne the previous fortnight, and removed it early next month. 

The government imposed the windfall tax in July 2022 after crude oil rates surged in the aftermath of the Russia-Ukraine crude oil prices leading to huge profits for oil producers. It reviewed the tax rates every fortnight to calibrate its tax mop-up. ALSO READ: Explained: Factors shaping Saudi Arabia and OPEC+'s decision to cut crude oil output?

Analysts also expect improvement in Reliance's gross refining margin — a key measure of profitability for refiners that determines the amount of money generated by refining every barrel of crude oil. 

According to Zee Business research, Reliance Industries telecom arm Reliance Jio Infocomm's average revenue per user (ARPU) — a key measure of profitability for telecom operators — is estimated to remain steady at Rs 178.2. 

Reliance Q3 results: How the group fared in the October-December 2022 period

For the quarter ended December 2022, Reliance Industries reported a 15.6 per cent quarter-on-quarter increase in net profit to Rs 15,790 crore. Its revenue came down to Rs 2.21 lakh crore from Rs 2.3 lakh crore the previous quarter, according to a regulatory filing. Both top-line and bottom-line fell short of analysts' estimates.

According to Zee Business research, the group's net profit was estimated at Rs 16,150 crore and income at Rs 2.25 lakh crore. Read more on RIL Q3 results

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