Reliance Industries Limited (RIL) on Friday reported steady third-quarter results. While gross refining margins (GRMs) met expectations, Reliance Jio reported a mixed bag. Though the average revenue per user has beaten estimates, the pace of subscriber addition is slower than expected.

Market experts SP Tulsian of sptulsian.com, Prakash Diwan of www.prakashdiwan.in and Deven Choksey of KRChoksey Investment Managers give their take on RIL numbers.

Speaking about the overall performance of Reliance Industries, SP Tulsian said, “The petchem has disappointed us, but if you take a call on refinery, retail and Jio, the numbers are phenomenal or maybe much above market expectations. The profit after tax of Rs 11,841 crore posted by the company is seen to be phenomenal and I think that the market will be cheering these numbers largely on account of the traction seen in retail. I won’t hesitate to give a valuation of Rs 4-4.5 lakh crore on the EV basis to Reliance Retail.”

Diwan pointed out that the average revenue per user of Reliance Jio is finally going up. "The company is finally going into more value creation in terms of its subscriber base and they are not just going after the numbers for the sake of numbers. Capex is almost half of what we did about four quarters back. What it tells you is that here is a company that is no more wanting to fuel its growth because it has reached optimal scale,” he said.

According to Choksey, the profit contribution from consumer business would be somewhere around 35-37 percent in the total basket of Reliance.

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First Published:Jan 17, 2020 8:50 PM IST