Q3 results today: RIL, Wipro among 42 companies to report earnings on Friday

The December quarter earnings season continues on Friday with as many as 42 companies set to announce their Q3 results. Key results to watch out for include Reliance Industries, Wipro, Tech Mahindra, Polycab, L&T Finance and Federal Bank.

Apart from these, companies such as JSW Infrastructure, Poonawalla Fincorp, Central Bank of India, JB Chemicals, Tata Technologies, Sobha, KPI Green will also report their quarterly numbers.

What to expect from RIL Q3 results


Reliance Industries is expected to report a steady set of numbers for the December quarter, with most brokerages building in mid-single digit growth across revenue and profits. The performance is likely to be driven mainly by the oil-to-chemicals and digital businesses, while retail growth is expected to remain subdued and the upstream oil and gas business could continue to face pressure.

Based on an average of estimates from seven brokerages, RIL’s consolidated revenue is expected to rise around 8% year-on-year in the third quarter, while profit after tax is seen growing by about 7% from a year ago. Consolidated EBITDA is projected to increase close to 9% year-on-year, with a modest improvement compared to the September quarter.

The oil-to-chemicals business is expected to be the largest contributor to earnings growth during the quarter. Analysts expect better refining margins and a weaker rupee to support profitability. Several brokerages see O2C EBITDA rising in the low-to-mid teens on a year-on-year basis, with sequential growth also expected as refining margins improve. While some analysts flag a marginal decline in refining throughput, higher gross refining margins are likely to more than offset this.

The digital services business, led by Jio, is expected to deliver steady growth, supported by continued subscriber additions and a gradual increase in average revenue per user. Most estimates point to mid-teens year-on-year growth in digital EBITDA, with modest sequential improvement. Analysts expect ARPU to edge higher during the quarter, while the subscriber base is seen expanding further.

Retail, however, is likely to remain a softer area. Growth is expected to be impacted by intense competition and continued investments in quick-commerce. While revenues are seen growing at a healthy pace, EBITDA growth is expected to stay in low single digits, with margins under pressure.

The upstream oil and gas business is expected to continue facing headwinds due to lower production and softer realizations. Most brokerages are building in a double-digit year-on-year decline in EBITDA for this segment.

Wipro Q3 expectations

Wipro is expected to report a largely flat profit performance in the December quarter, with modest revenue growth and continued pressure on margins, as furloughs, deal ramp-up costs and the integration of recent acquisitions weigh on near-term profitability.

According to an average estimate of six brokerages, Wipro's profit after tax for Q3 is expected to grow just 0.4% year-on-year, while revenue is seen rising around 4% from a year ago. Sequentially, growth is expected to remain subdued, reflecting a still cautious client spending environment.

Brokerages broadly expect Wipro's IT services revenue to grow between 0.5% and 1.2% quarter-on-quarter in constant currency terms, with part of the growth coming from inorganic contributions. The integration of the Harman acquisition is expected to provide a one-month revenue boost during the quarter, though it is also likely to dilute margins in the near term.

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