Reliance Industries Q4 Results Review - Beat On Lower Tax Rate: Dolat Capital

Dolat Capital Report

Q4 FY23, Reliance Industries Ltd.’s Ebitda was up 23% YoY and 9% QoQ to Rs 384 billion (2% above estimates), led by strong operating performance across the segment.

Oil-to-chemical was a major driver- 1. minimal impact of export duties on gross refining margin; 2. sequential improvement in GRM and polymer deltas, and 3. cheaper ethane as a feedstock for a cracker.

Retail posted record Ebitda on the back of - highest ever footfalls of 219 million; and grocery and fashion and lifestyle was a major growth driver. 

RIL’s profit was up 19% YoY and up 22% QoQ to Rs 193 billion (15% above estimates) mainly due to lower tax rate. Capex jumped 37% YoY mainly due to rise in 5G roll-out, ramp-up in retail operations.

Despite higher capex, net debt remained at same level and guided that net debt/ Ebitda lower than one time.

Going forward, RIL’s Ebitda/ profit after tax to clock at compound annual growth rate of 12%/13% over FY23-25E, backed by retail’s long term growth to continue as expansion in network, and recovery in petrochemical margin.

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