RIL Q4 Results: Reliance's Q4 Numbers In Line With Estimates, Records Highest Ever Quarterly PAT Of ₹19,299 Cr

What's ahead for RIL after Q4? 

Parul Rao, Research Analyst, SAMCO Securities:

The company maintains a positive outlook across the O2C chain-driven business. The Oil & Gas segment is poised to be a source of significant value and sustained earnings growth in the coming years. Reliance Jio is expected to continue its leadership position with a healthy subscriber base and new offerings. Going ahead, the retail segment is positioned for strong growth as the company has been bolstering its portfolio through acquisitions and expansion. The listing of Jio Financial services will unlock new opportunities for investors.

RIL continues to make significant progress in New Energy giga factories

Mukesh Ambani said, "Implementation of our New Energy giga factories at Jamnagar is making significant progress. This puts us on track to achieve our goals of transitioning to cleaner energy and enabling sustainable growth. I believe Reliance’s significant investments and strategic partnerships in the renewable energy vertical will help transform the energy landscape of India and the world, in the coming years."

Experts reaction on RIL earnings

Avishek Datta – Research Analyst, Prabhudas Lilladher Pvt Ltd

- RIL reported Q4 results with standalone EBIDTA & PAT of Rs180.7bn (+20.2%Q/Q; PLe Rs142bn) and Rs138.2bn (+65.1%Q/Q; PLe Rs84.8bn) respectively. FY23 EBITDA/PAT amounts to Rs671bn/442bn (+28%/+13% YoY).

- O2C EBIDTA was at Rs148.2bn (+22.4%Q/Q).

- Gas EBIDTA was at Rs38.4bn (+1%Q/Q).

- Consol Q4 EBIDTA/PAT was at Rs384.4bn (+9.1%Q/Q) and Rs213.3bn (+19.8%Q/Q). FY23 EBIDTA/PAT stands at Rs1,429bn (+29%YoY) and Rs741bn (+9%YoY).

- Jio Q4 EBIDTA was at Rs122bn while PAT was at Rs47.2bn. ARPU and subscriber data awaited. FY23 EBITDA & PAT amounts to Rs466bn & Rs182bn (+24% & +23% Y/Y).

- Reiterate BUY, with PT of ₹2,834.

RIL's Oil & Gas segment

Oil & gas segment registered a whopping 126.9% YoY growth in Q4FY23 to ₹4,556 crore, while EBITDA skyrocketed by 144.3% YoY to ₹ 3,801 crore.

Mukesh Ambani said, "Our oil and gas segment also delivered very strong growth and is now poised to contribute nearly 30% of India’s domestic gas production."

 Akash Ambani on RJio's Q4 

Akash M Ambani, Reliance Jio Infocomm Limited Chairman, said, “Jio has taken formidable strides in pioneering 5G rollout across the country with unmatched speed of execution. 5G has led to a significant improvement in customer experience, reflected in the higher engagement levels among Jio users. Jio remains committed to build a robust digital society with tailormade technology platforms which will drive sustained growth in earning and value for all stakeholders."

RIL's O2C business performance

RIL's O2C business reported a record EBITDA of ₹16,293 crore in Q4FY23 surging by 14.4%. However, the segment's revenue dipped by 11.8% YoY to ₹128,633 crore in the quarter.

EBITDA margin was at 12.7%, an increase of 290 bps Y-o-Y led by strength in transportation fuel cracks, optimized feedstock cost and advantageous ethane cracking economics. This was partially offset by lower polyester chain margins. SAED on transportation fuels adversely impacted earnings by ₹ 711 crore.

Reliance Retail continues to expand footprint

Reliance Retail registered excellent growth numbers backed by expansion of physical and digital footprint and a significant increase in footfall, said Mukesh Ambani. He added, "We continue to expand our product base across consumption baskets, ensuring our customers get world-class products at affordable prices. Our retail team has an unwavering focus on enhancing consumer experience and ease of shopping."

Jio's operating profit growth impressive

Mukesh Ambani said, “Jio continues to digitally empower millions of citizens across the nation, extending True 5G reach to 2,300+ cities and towns in a short span of 6 months. With steady growth in mobility and FTTH subscriber base and an expanding bouquet of content and digital services, the Jio business continues to deliver impressive growth in operating profits."

4 key boosters for RIL's operating profit performance in Q4FY24

The conglomerate's EBITDA jumped by 23.1% Y-o-Y to ₹ 154,691 crore ($ 18.8 billion), on account of:

1. Increase in revenue along with steady improvement in margins leading to 24.9% EBITDA growth in Digital Services Segment.

2. Margin expansion with benefits of scale and operating leverage resulting in 44.7% growth in Retail segment.

3. Sharp improvement in fuel cracks partially offset by introduction of SAED on export of transportation fuels and lower downstream product delta in O2C segment. This resulted in EBITDA growth of 17.7%.

4. Higher gas price realization in the Oil & Gas segment leading to EBITDA growth of 149.0%.

Reliance Retail Q4FY23

 Reliance Retail logged a 12.9% jump in its consolidated net profit for the March 2023 quarter to ₹2,415 crore. RIL-backed retail chain's gross quarterly revenue was up by 19.42% to ₹69,267 crore, from ₹58,017 core in the corresponding quarter last fiscal. EBITDA shot up by 32.6% YoY to ₹4,914 crore.

Read here: Reliance Retail Q4 PAT jumps 12.9% YoY, records highest ever footfall

Standalone Q4 PAT and revenue

On a standalone basis, RIL posted a net profit of ₹13,821 crore in Q4FY23, rising from ₹11,094 crore in Q4FY22 and ₹8,373 crore.

Standalone revenue from operations came in at ₹122,133 crore in Q4FY23, compared to ₹133,991 crore in Q4FY22 and ₹129,415 crore in Q3FY23.

RIL's value of sales and services Q4

RIL witnessed value of sales and services of ₹239,082 crore up by 2.8% YoY supported by continuing growth momentum in consumer businesses. Digital Services segment achieved 15.4% Y-o-Y growth while Retail segment grew by 19.4% Y-o-Y.

Mukesh D. Ambani, Chairman and Managing Director at RIL

Ambani said, "I am happy to note Reliance’s initiatives in digital connectivity and organized retail are driving greater efficiencies in the economy and contributing to India’s emergence as one of the fastest growing economies in the world.

Consolidated revenue in Q4FY23

RIL's top-line front was a mixed bag in Q4FY23. On YoY basis, the company sees a marginal upside of 2.1% in revenue from operations to ₹216,376 crore compared to ₹211,887 crore in Q4FY22.

On the contrary, RIL's revenue dipped by 1.9% sequentially in the quarter under review. In December 2023, revenue was at ₹220,592 crore.

Consolidated Q4 PAT

Reliance Industries posted a consolidated net profit of ₹19,299 crore in Q4FY23, increasing by 19.11% YoY and 22.21% QoQ.

The company's consolidated PAT stood at ₹16,203 crore in Q4Y22 and ₹15,792 crore in Q3FY23.

The profit is attributable to the owners of the company.

Reliance Retail Q4 earnings soon

Along with RIL's main earnings, the conglomerate's retail subsidiary, Reliance Retail will also announce its March 2023 quarter earnings (Q4FY23). 

The retail giant had posted 17% YoY rise in revenue to ₹67,634 crore in Q3FY23. Net profit surged by 6.2% YoY to ₹2,400 crore. 

Jio's FY23 performance

For FY23, the company's net profit stood at ₹18,207 crore up by 22.9% from ₹14,817 crore in the previous fiscal. Revenue from operations stood at ₹90,786 crore in FY23 versus ₹76,977 crore in FY22, recording a growth of 17.9%.

Details of RIL's Q4 announcement.

The company's board of directors will meet on April 21st to consider and approve the standalone and consolidated audited financial results for the quarter and year ending March 31, 2023.

A presentation to analysts and media on the financial results of the Company for the quarter and year ended March 31, 2023, shall be made on the same day after the meeting

How will RIL's Q2C business perform in Q4?

HDFC Securities estimated RIL's O2C EBITDA/tonne of crude processed to increase by 4 per cent QoQ in Q4FY23, owing to an improvement in petroleum product cracks and an improvement in petchem margins QoQ.

ICICI Direct said, improvement in GRMs is expected to lead to the growth of 10.5% QoQ in O2C EBITDA to ₹15387 crore.

RJio Q4 EBITDA

The company's EBITDA came in at ₹12,210 crore in Q4FY23, also registering a growth of 1.7% from ₹12,009 crore in Q4 of previous fiscal.

EBITDA margins stood flat at 52.2%.

RJio Q4 revenue

The company has garnered revenue from operations of ₹23,394 crore in the quarter under review, as against ₹22,998 crore in Q3FY23. The growth came in at 1.7% sequentially.

Jio Q4 PAT

RIL's telecom arm posted a net profit of ₹4,716 crore in Q4FY23 compared to a profit of ₹4,638 crore in the preceding quarter, registering a growth of 1.7%.

Reliance Jio declares Q4 earnings

Reliance Industries telecom arm, Reliance Jio posted single-digit growth across key verticals in the fourth quarter of FY23.

RIL's outstanding debt by end of Q3FY23

By end of December 31, 2022, the company's outstanding debt stood at ₹303,530 crore ($ 36.7 billion), while cash and cash equivalents were at ₹193,282 crore ($ 23.4 billion). RIL's net debt is lower than annualized EBITDA.

RIL stock expected to trade sideaways after Q4

Sonam Srivastava- Founder at Wright Research said:

RIL may report a decline in revenue and lower diesel margins, which could be partly compensated by higher Petchem margins. The impact of the windfall tax is expected to be lower in the quarter. RIL's telecom and retail segments are expected to continue their steady performance, with Jio expected to have net subscriber additions and a relatively stable ARPU. Analysts generally expect an increase in consolidated EBITDA on year due to sequential improvements across all key segments.

We expect the stock to trade sideways after the earnings and people can take hedged options positions to trade the earning day volatility.

What will be RIL's Q4 numbers? 

ICICI Direct expects RIL to post a consolidated revenue of ₹2,01,245.7 crore down by 8.8% QoQ and 5% YoY. Consolidated EBITDA is likely to be at ₹37,540.6 increasing by 6.5% QoQ and 19.7% YoY. PAT is factored at ₹17,544.5 crore, up by 11.1% QoQ and 8.3% YoY.

RIL likely to post better Q4 for all key segments.

Kotak Institutional Equities expect RIL to post better Q4 for all key segments. The brokerage said, “We expect RIL’s consolidated EBITDA to increase 4% qoq and 16% yoy. In O2C, refining margins remain resilient, windfall tax impact should be further reduced, and there would be marginal recovery in petchem. We expect standalone EBITDA to increase 7% qoq (10% yoy). For Jio, we estimate EBITDA to rise 2% qoq (16% yoy), driven by higher net adds and qoq stable APRU at ~Rs178. For Retail, we expect EBITDA to grow 2% qoq (on festive quarter) and 19% yoy."

Reliance Jio Q3 results

Just like its parent, Reliance Jio will also announce its Q4FY23 earnings. 

In the December 2022 quarter, Jio posted a double-digit growth in both the top-line and bottom-line front. Net profit stood at ₹4,638 crore, while revenue was at ₹22,998 crore. Also, the company's value of services stood at ₹27,055 crore.

As of December 31, 2023, Jio's ARPU was around ₹178.2 per subscriber per month.

Prabhudas Lilladher expects RIL Q4 results to be lower 

In Q4 preview note, Avishek Datta analyst at Prabhudas Lilladher said, “RIL results will be lower due to the QoQ decline in diesel, ATF spreads despite factoring in lower windfall tax impact. We estimate refining throughput of 16.5MTPA, (16.2MT in Q3). Petchem profitability will improve QoQ due to demand recovery post China reopening. We expect steady Jio performance (3.3%QoQ revenue growth and 2.1% QoQ ARPU hike), while retail segment profitability should be resilient."

Accordingly, Datta believes RIL's earnings to decrease QoQ due to lower GRMs (adj for windfall tax). Jio and retail performance will be steady.

RIL stock price

RIL's share price ended in the green ahead of Q4 numbers. The stock closed at ₹2,348.90 apiece up by ₹3.20 or 0.14% on BSE.

Reliance is the largest Indian company in terms of market share. As of April 21, before Q4 earnings, its m-cap is over ₹15.89 lakh crore.

RIL Q3FY23

RIL witnessed decent third-quarter earnings for FY23. In Q3, the company posted a consolidated net profit of ₹15,792 crore declining by 14.8% YoY, while revenue from operations climbed by 15% YoY to ₹2.20 lakh crore. EBITDA came in at ₹38,460 crore, up 13.5% on-year.