Reliance Industries is set to disclose its FY23 fourth-quarter results on Friday, April 21. The company's stock has declined 7 percent since the beginning of 2023, and analysts anticipate a decent quarter this time around.

Revenue is is projected to increase by approximately 8.5 percent as compared to the previous quarter, while EBITDA may increase by approximately 5.2 percent; margins may be slightly under pressure compared to Reliance's performance in the previous quarter. Profits are expected to rise by 12 percent to approximately Rs 17,700 crore.

Reliance Industries has witnessed satisfactory performances from both its consumer and commodity businesses, and its oil-to-chemicals segment has been a major factor contributing to the quarter's recovery.

Analysts are anticipating a sequential recovery for various reasons, including the lower windfall tax and a stronger base gross refining margin that could aid this segment.

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Singapore's gross refining margins have improved to $8.2 per barrel in Q4, compared to $6.3 per barrel in the previous quarter, and the demand has improved due to China's reopening, resulting in improved numbers.

In the consumer-facing businesses, Reliance Jio's have experienced a slight slowdown, resulting in moderate revenue and profitability growth that could potentially be the lowest in the past seven quarters. The average revenue per user is expected to remain steady at Rs 178 this quarter.

The slowdown can be attributed to various reasons, but the primary reason is the absence of a tariff hike, leading to a slowdown in Reliance's growth rate in the telecom business.

Reliance Industries' retail segment is anticipated to experience sequential growth of approximately 6 percent amounting to slightly over Rs 46,650 crore. On the EBIT side, the street expects around Rs 3,800 crore compared to Rs 3,600 crore in the previous quarter, on a sequential basis.

Despite a possible slowdown in some businesses such as RIL Jio, the expected decent growth could be offset by good growth in the oil-to-chemical space.

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First Published:Apr 20, 2023 6:07 PM IST