Know what experts have to say about Reliance Q4 & Jio results:
Sushil Choksey, Indus Equity Advisors
Petrochem margin looks amazing. By 2019, numbers of the core business of petrochem and refining will be matching. There's a possibility, petrochemical will be higher than refining and marketing business. Jio number looks stable, but if you are looking at long-term investment point-of-view, the core business of Reliance is doing wonderfully well. Looks like they'll be able to throw in enough cash for Jio expansion.
Sanjiv Bhasin, IIFL
How is Reliance Jio managing so many freebies? That is questionable. But robust growth of 134 per cent in retail business and continuing growth momentum has turned positive, and over a period of time it will sustain given, cash infusion is coming from the other businesses.
Reliance deserves to be in the $100 billion club. It may not happen now, but it is definitely on board. This quarter maybe a slightly sluggish one. But in the next three months, Reliance will be in the $100 billion club. If they maintain 134 as APRU, then that means they are really showing a lot of strength.
Vikas Halan, Moody's Investors Service
As oil prices increase, refining margins do come down. That co-relation we have seen over the past few years. Gross refining margin (GRM) dipped to $11 from $11.6 reported in the December quarter. We had expected Q4 FY18 GRM to come in at $11.3-11.6.
Nitin Soni: Fitch ratings
Despite low-cost mobile services, Jio posted the highest average revenue per user in the industry at Rs 137.1 per month during the reported quarter. Sunil Bharti Mittal-led Airtel reported an average revenue per user (ARPU) of Rs 116 for the quarter, down by 26.7 per cent from Rs 158 it had registered a year ago.
In the next few quarters, the competition is going to be intense for both Reliance and Bharti.
GRMs are slightly below our expectations. We expected it to be around 11.4.Good traction from retail. Rather than looking at Reliance on quarter to quarter basis, it should be seen as a long-term India story of diversification. We are very close to the capex cycle for their petrochem. There will be a sharp jump in profitability trend.