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    RIL to announce Q4 results today. 5 things to watch out for in the earnings card



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    India’s leading conglomerate Reliance Industries Ltd (RIL) will announce its fourth quarter results today. The company is expected to see decline in profitability on the back of weak oil-to-chemicals (O2C) business. However, the retail and Jio businesses show strength and contribute heavily to the overall growth.

    Here are 5 things to watch out for in RIL Q4 results

    Core Earnings

    On average, six brokerages expect the company’s net profit for the fourth quarter to drop by about 5% compared with last year. At the same time, they predict its sales revenue will go up by around 4%.

    Analysts see Reliance Industries’ overall EBITDA (earnings before interest, taxes, depreciation, and amortization) will grow between 1% and 3%, thanks mostly to higher telecom prices and a stronger retail business.


    O2C business to remain weakO2C’s (oil-to-chemicals) EBITDA is estimated at around Rs 13600 crore in the fourth quarter, a moderation of 6% quarter-on-quarter (QoQ), led by lower refining margins due decline in spreads for gasoline and jet fuel, partly offset by favorable FX movements.Refining margins are also likely to moderate to $8.9 per bbl.

    Retail business to show strength

    The growth for Reliance Retail likely remained healthy in the fourth quarter as Nomura estimated core retail revenue of Rs 57,500 crore, up 15% YoY and EBITDA of Rs 6600 crore, up 16% YoY, with margins rising to 7.5%.

    Jio’s dominance to continue

    The consumer-facing business continues to deliver at a healthy pace even in Jio. Analysts estimate Jio’s EBITDA at Rs 15600 crore, underpinned by strong increase in subscriber base by 6 million subs to 488 million and modestly higher ARPU of Rs 205 per month.

    Dividend

    Along with the fourth quarter, the Board said it will consider and approve a dividend for investors. This will be the first dividend after nearly three quarters and also first for the fiscal year 2025.

    (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

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