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Reliance Industries Q3 Results Review - Standalone Business Delivers With Improved Realisations: Motilal Oswal

RIL's Q3 consolidated revenue was inline with our estimate, Ebitda grew 19% YoY/13% QoQ driven by a big beat in standalone result.

<div class="paragraphs"><p>Reliance Industries Ltd. (Source: Company website)</p></div>
Reliance Industries Ltd. (Source: Company website)

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Motilal Oswal Report

Reliance Industries Ltd.’s Q3 FY23 consolidated revenue was inline with our estimate, up 17% YoY/down 6% QoQ. Ebitda grew 19% YoY/13% QoQ (18% beat) driven by a big beat in standalone result.

Adjusted for an extraordinary gain in Q3 FY22, profit after tax declined 3% YoY as the improvement in operating margin was offset by higher depreciation and finance cost.

RJio’s revenue/Ebitda rose 2%/5% sequentially (inline) led by 1% increase in subscribers and marginal rise in average revenue per user. Controlled network cost and spectrum usage charge benefit resulted in 120 bps sequential Ebida margin expansion to 52.2%. Profit after tax grew 3% sequentially (5% miss) because of high depreciation charges due to 5G deployment in Q3 FY23. 

Reliance Retail saw healthy revenue/Ebitda growth of 19%/25% YoY (slight miss) with improving footfalls and growing digital business; however, fashion and lifestyle segment remained soft during the quarter.

Oil-to-chemical Ebitda came in 38% above our estimate at Rs 150 billion (up 8% YoY); Ebitda/million tonne stood at ~$113 (up 7% YoY, up 21% QoQ). Revenue growth was constrained as throughput was lower because of a planned maintenance and inspection activity turnaround. Production meant for sale stood at 16.2 metric million tonne in Q3 FY23 (down 8% YoY, flat QoQ).

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Motilal Oswal Reliance Industries Q3FY23 Results Review.pdf

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