Reliance Industries Q3 Results Review - Petroleum Margins Could Face Recessionary Risk: Yes Securities
RIL reported an inline Q3 FY23, with operating profit at Rs 352.5 billion.
BQ Prime’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 BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Yes Securities Report
Reliance Industries Ltd. reported an inline Q3 FY23, with operating profit at Rs 352.5 billion (up 19% YoY; up 13% QoQ). Strong refinery margins aided by firm middle distillate cracks, improvement in telecom average revenue per user and subscriber base and continued momentum in retail segment sales aided by festive season, were key driver of profitability during the quarter.
However, weakness in global petrochemical demand weighed on polymer and polyester cracks. In the retail segment as well, consumer sentiment turned cautious post festive season.
In our view going ahead, global recessionary concerns, amidst continued capacity addition (refining and petrochemical) could possibly be a key overhang on petroleum spreads, impacting RIL’s operating cashflow in coming quarters, whereas capex requirement remain high.
Caveat to above is a strong revival in Chinese economy and petroleum demand, aiding cracks. In the longer run however investment in petrochemical and renewable capacities along with 5G roll out are potential revenue drivers.
Click on the attachment to read the full report:
More Research Reports On Reliance Industries' Q3 FY23 Results Reviews
This report is authored by an external party. BQ Prime 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 BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.