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ICICI Direct Report
Reliance Industries Ltd.'s results were marginally better than estimates on the operational profitability front.
Revenue was up 2% YoY (down 2% QoQ) to Rs 220592 against our estimate of Rs 201246 crore.
Ebitda came in at Rs 38440 crore, up 23% YoY, 9% QoQ versus our estimate of Rs 37540 crore. Ebitda growth QoQ was driven by oil-to-chemical segment (up 17%).
Profit after tax was higher than estimates at Rs 19299 crore, up 19% YoY, 22% QoQ (our estimate: Rs 17545 crore) due to lower-than-expected tax.
Key triggers for future price performance:
Increment value accretion from the ‘digital ecosystem' that will be captured at the Jio Platforms level.
Steady free cash flow generation in the retail segment would enable the company to maintain debt at lower levels and improve its ability to invest in future inorganic opportunities.
Rise in gross refining margins will be the key to lift O2C earnings. Steady cash flow from traditional business to enable RIL to invest in new energy verticals.
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