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Reliance Q3 earnings preview: Profit may jump 10-14%; GRM seen at $9.2-9.6

NEW DELHI: Oil-to-telecom major Reliance Industries (RIL) is expected to report a 10-14 per cent yearly rise in profit for the December quarter. Retail and telecom businesses may do well, but petchem business may show some weakness. Refining margins for the quarter are likely to stay in $9.2-9.6 range, analysts said.

Brokerage Edelweiss Securities expects the company to report 11.6 per cent jump in consolidated profit at Rs 11,400 crore. It sees petchem Ebitda falling 22.6 per cent, which would be offset by higher refining (up 4.7 per cent).

JM Financial expects Reliance’s revenue to come in at Rs 1.51 lakh crore, down 0.8 per cent sequentially. The brokerage sees profit rising 4 per cent QoQ (14 per cent YoY) to Rs 11,710 crore.

“RIL’s refining margins are expected to average around $9.4-9.6 (flat QoQ, up 7 per cent YoY), as higher crude premiums and shipping costs will be negated partly by lower opex and higher gasoline and naphtha margins and hardware upgrades.

Reliance Jio’s Ebitda is expected to rise 12-14 per cent sequentially aided by recovery of interconnect charges from consumers and marginal uptick in Arpu post December tariff hike,” it said.

Sharekhan sees gross refining margin at $9.5 per barrel, while Nirmal Bang Institutional Equities pegs the number at $9.2.

Among key businesses, refining earnings are estimated to remain muted with Ebit at Rs 5,180 crore.

“Petchem Ebitda of Rs 6,750 crore is estimated to decline sharply 17.9 per cent YoY. Retail and Jio businesses are expected to report strong earnings with Ebitda at Rs 2,260 crore (up 49.4 per cent YoY) and Rs 3,690 crore (up 55.7 per cent YoY) respectively,” Centrum Broking said.

Overall, RIL will report strong quarter with Ebitda/PAT at Rs 22,600/Rs11380 crore (up 6 per cent/9.6 per cent YoY, the brokerage said.

Motilal Oswal Securities said better GRM premium over Singapore will be aided by commissioning of enhanced coker capacity. It said that any comment on the full economic utilisation of petcoke gasifier will be keenly tracked.

Source: Economic Times