RIL Q3 Results Review — Strong Retail, O2C Lifted Profits; Systematix Lowers Target Price But Maintains 'Buy'

Reliance’s O2C segment showcased steady performance rising 2.4% YoY/16% QoQ due to higher gross refining margin and better PP/PVS spread, partially offset by weaker polyester chain cracks..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Systematix Report.Reliance Industries Ltd. delivered a robust performance in Q3 FY25 beats our Ebitda/PAT estimates by 5.5%/5.9% owing to a stronger-than-expected profit from the retail and oil-to-chemical businesses. Jio Digital Services and retail sales outperformed jumping 16.7%/9.1% YoY (3.1%/16.7% QoQ) due to tariff hike, ramp up in home connections and festive season. Reliance’s O2C segment showcased steady performance rising 2.4% YoY/16% QoQ due to higher gross refining margin and better PP/PVS spread, partially offset by weaker polyester chain cracks. KG D6 production remained flattish at 28 million metric standard cubic metre per day of gas and 21K bopd of oil/condensate versus 28.6/20.8kbopd QoQ. Jio witnessed another healthy quarter as average revenue per user rose sharply by 11.9% YoY/4.2% QoQ to Rs 203.3 (our estimate Rs 205), tariff hike still remains to play out in coming quarters. Subscriber base bounced back to its FY24 levels i.e. 482 million up 2.4%YoY/0.7% QoQ. Retail business benefitted from strong festive demand backed by 156 net store additions, showcasing revenue/sq.ft. of Rs 10,284 (+0.8%YoY/22.8% QoQ), taking total count to 19,102 stores resulting in Core Ebitda/store of Rs 3.5 million. In O2C segment, better operational excellence and strong domestic volume demand helped to clock 17.9 mmt production (up 9.1% YoY) and Ebitda/mt of $95.2 (down 7.5% YoY/13.8% QoQ). Overall, Ebitda increased 7.7%/12.1% YoY/QoQ to Rs 438 billion. Total capex dropped sequentially to Rs 323 billion in Q3 FY25 from Rs 340 billion (Rs 301 billion YoY) largely spent towards new energy and O2C. Total net debt declined to Rs 1.16 trillion versus Rs 1.19 trillion YoY. We retained our Buy on the stock with a revised target price of Rs 1,476 from earlier Rs 1,572 on the back of lower multiple to O2C given the weakness in GRM and petrochemical spreads..Click on the attachment to read the full report:.Reliance Industries Q3 Results: Revenue Rises 4%, Profit Up 12%.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

RIL Q3 Results Review — Strong Retail, O2C Lifted Profits; Systematix Lowers Target Price But Maintains 'Buy'

The brokerage retained Buy on the stock with a revised target price of Rs1,476 on the back of lower multiple to O2C given the weakness in GRM and petrochemical spreads.

NDTV Profit

NDTV Profit

Follow Us

DISCOVER US FASTER

DOWNLOAD THE APP