RIL Q4 results today: Key things to track & stock trading tips

In the preceding December quarter, RIL reported a 9% growth in consolidated net profit at Rs 17,265 crore, while revenue from operations jumped nearly 4% to Rs 2.28 lakh crore.

Here are five key things investors need to watch out for:

Core earnings

Revenue from operations for the fourth quarter are expected to grow up to 12% year-on-year, according to an average estimate of four brokerages.

Consolidated EBITDA for the quarter is seen increasing 3% sequentially and 9% year-on-year to Rs 41900 crore. Net profit for the quarter, meanwhile, is likely to drop up to 7% year-on-year, while rising 2% on a quarter-on-quarter basis.

Reliance Jio

For the telecom business, analysts expect the subscriber momentum to be better than in the previous December quarter, with 10-11.5 million net additions. However, ARPU (average revenue per user) is likely to be flat.

Nomura estimates Jio’s EBITDA to be around Rs 13600 crore, which is an increase of 2% quarter-on-quarter, underpinned by strong EoP subscriber additions.

O2C business

Analysts see O2C EBITDA to rise 11% quarter-on-quarter, underpinned by a strong increase in refining margins to $11.3/bbl vs $10/bbl in the third quarter, while petchem remains broadly steady quarter-on-quarter.

"We note that key spreads for polymers — PE increased 3% q-q, PP remained steady, while PVC declined 27% q-q. We factor in upstream EBITDA of Rs 56000 crore, a decline of 4% quarter-on-quarter, as modestly higher volumes would be offset by sequentially higher opex," Nomura said.

Retail business

Analysts expect retail EBITDA to grow around 1% quarter-on-quarter to Rs 63,000 crore. The retail revenue for the quarter is estimated around Rs 55,7000 crore, which will be an increase of 23% year-on-year with margins for the segment expanding 10 bps sequentially to 7.4%.

How to trade the stock

Shares of Reliance Industries (RIL) have outperformed the benchmark Nifty after rallying nearly 14% year-to-date. In the run-up to the quarterly earnings, the stock has been consolidating for the past few days.

"The psychological level of 3000 has been a put off, and we do not see the present setup favouring a vertical and sustained upmove, even if a direct rise above 3000 unfolds," said Anand James, Chief Market Strategist, Geojit Financial Services.

"The technical chart says that the price has been sustaining above critical near term moving average which suggests underlying bullishness. Any positive surprise in the number might induce a strong rally. On the higher end, a move above Rs 2,950 might take the price towards Rs 3,070 over the short term," said Rupak De, Senior Technical Analyst at LKP Securities.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)