RIL Q4 Results: What should investors do when RIL share price opens on Monday?

Mukesh Ambani-backed RIL posted highest ever quarterly profit driven by strong operating performance of core O2C business, optimized feedstock cost and ancillary product margins. Steady growth was also seen in the retail and telecommunication arm.

RIL announced its fourth quarter results after the market closed on Friday. Therefore, the stock price will fully see the impact of the financial results on Monday next week.

On BSE, RIL stock ended 2,348.90 per share marginally up from Thursday’s closing price 2,345.70.

Quoting RIL Q4 results, Parul Rao, Research Analyst, SAMCO Securities said,Reliance Industries It seems to be hitting all the right nerves in its businesses during the January-March period. Q4FY ’23. Despite Topline Flat YoY, Company Makes Its Highest-ever Quarterly Profit 19,299 crore, a jump of 19% YoY. Consumer-facing business went ahead and generated income.”

In Q4FY23, Ambani’s oil-to-energy empire recorded a PAT of Rs. 19,299 crore up 19.11% YoY and 22.21% QoQ. came in EBITDA 41,389 crore up 21.8% YoY. O2C business records record EBITDA 16,293 crore in Q4FY23 a growth of 14.4%.

However, in Q4FY23, the consolidated revenue stood at 211,887 crore up 2.1% YoY but down 1.9% sequentially. income from sales and value of services 239,082 crore with a growth of 2.8% driven by a sustained growth momentum in consumer businesses. Also, the digital services and retail segments registered a growth of 15.4% YoY and 19.4% YoY, respectively.

On performance, Abhijit Bora, DVP Research Analyst at Sharekhan by BNP Paribas said Q4 consolidated PAT was higher than his estimates, given the strong O2C earnings and lower tax rate of 11.6% in interest/depreciation cost and lower other income. offsets the increase.

Further, Bora said, “RIL posted a strong Q4FY23 performance with a 7% beat in consolidated EBITDA, a marginal miss in retail EBITDA due to better-than-expected standalone earnings at Rs38,440 crore (9% qoq) , while Jio’s performance was broadly .-line. Standalone EBITDA grew sharply by 20% qoq to Rs.18,070 crore (up 10% above our estimate) led by strong O2C EBITDA of Rs.14818 crore (up 22% qoq) Reflecting the benefits of higher gasoline crackdown and feedstock optimization in the U.S. Jio EBITDA was at Rs 12,767 crore with a 2% QoQ growth with stable ARPU of Rs 179 and net subscriber addition of 6.4 million QoQ. Retail EBITDA was up against slower revenue growth. Reason Retail EBITDA was lower than expected at Rs 4769 crore (up 2.4% QoQ) at 2.4% while margin remained stable at 7.7% QoQ.”

Furthermore, Bora said, “The company maintains a positive outlook in the O2C chain-driven business. The oil and gas segment is poised to become a source of significant value and sustained earnings growth in the years to come. are supposed to.” Leadership position with a healthy customer base and new offerings.”

Accordingly, going forward, the Samco analyst said, “The retail segment is poised for strong growth as the company continues to strengthen its portfolio through acquisitions and expansions. The listing of Jio Financial Services will open up new opportunities for investors.” “

On valuation, Sharekhan’s analyst said, “Continued strong traction in its consumer-facing business to drive strong earnings growth for RIL and remains a potential IPO catalyst for Jio/Retail. RIL is our top pick and our Has a Buy rating on the stock.”

Avishek Datta – Research Analyst, Prabhudas Lilladher also has a ‘Buy’ rating on RIL for target price. 2,834 each onwards.

Disclaimer: The views and recommendations given above are of individual analysts or broking companies and not of Mint. We advise investors to do due diligence with certified experts before making any investment decision.