Reliance Industries Q3 FY25 results preview: Reliance Industries is expected to announce its Q3FY25 financial results on January 16. Analysts expect the company’s performance to be mixed amid strong growth in earnings from telecommunication business, improvement in refining margins and moderate growth in retail business. On a quarterly basis, RIL’s operating income is expected to increase in the third quarter. But a faster growth in net profit is expected on a quarterly basis. Analysts also expect the company to see strength in its consolidated EBITDA due to strong refining margins and high ARPU from digital services despite weakness in petrochemicals.
According to a Moneycontrol poll conducted among brokerage firms, Reliance Industries may see a strong quarterly growth of 6 percent in its net profit for the October-December quarter. The company’s profit during this period may remain at Rs 17,482 crore. At the same time, EBITDA is expected to be at Rs 41,125 crore with a growth of more than 5 percent on quarterly basis.
Brokerage firms estimate that the EBITDA margin of Reliance Industries in the third quarter will be in the range of 18.2-18.9 percent, which is a better figure than the previous quarter. EBITDA margins are expected to strengthen due to higher GRMs in the refining business and tariff increases in digital services.
Elara Capital has the highest bullish forecast among brokers surveyed by Moneycontrol. He believes that in the third quarter, the company’s net profit may increase by more than 10 percent on a quarterly basis. At the same time, its EBITDA6 can achieve a growth of 6 percent on quarterly basis during this period.
Where is the company’s income getting support from?
O2C Business: According to MK Research, the income of O2C business will gradually improve due to improvement in diesel crack and reduction in crude premium. Analysts expect refining margin (GRM) to be between $8.7-10.8 per barrel. It will benefit from better ex-China supply-demand and cost reduction. However, Goldman Sachs says petchem margins are likely to remain under pressure due to unresolved supply and demand issues for olefins and some aromatics.
Digital Service: Reliance Jio is expected to perform strongly in the third quarter. Elara Capital says that Jio’s EBITDA can grow by 17 percent on an annual basis and 4 percent on a quarterly basis. Due to high ARPU it is expected to increase to Rs 203-205. Growth in customer base is expected to be slow but steady.
Retail Business: Growth is expected in the retail segment. Its EBITDA is expected to grow by 5-6 percent quarter on quarter. Growth in retail EBITDA will come on the back of higher footfall and improvement in urban consumption.
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