RIL Q2 Results Preview: Profit, Revenue Likely To Rise On Better Performance

Reliance Industries Ltd.'s second quarter revenue and profit are likely to rise sequentially on robust refining margins and comparatively better performance across oil-to-chemicals and other segments.

Consolidated net profit for the period is expected to rise 11.5% to Rs 17,850 crore for the quarter ended September, according to an average of analysts' estimates tracked by Bloomberg.

The consolidated revenue of India's largest company by market value is expected to rise 6% to Rs 2.23 lakh crore.

The company's operating income—or earnings before interest, tax, depreciation, and amortisation—is projected to rise 5.85% to Rs 40,322 crore, according to research estimates tracked by Bloomberg.

RIL will declare its quarterly results on Friday.

O2C Ebitda is likely to improve by 3% sequentially to Rs 15,700 crore on the back of gross refining margin of $12.5 per barrel as compared with an implied GRM of around $11 per barrel in the first quarter. It will be mainly driven by a sharp jump in diesel cracks, JM Financial Ltd. said in a report.

However, this was partly offset by moderation in Russian crude discount, lower refining throughput due to maintenance shutdown, and further weakness in petrochemical segment margin, it said.

Reliance Jio Infocomm Ltd.'s Ebitda is estimated to rise 3% sequentially to Rs 13,000 crore, underpinned by strong subscriber additions of 8 million and a modest 0.6% increase in average revenue per user to Rs 182 per month, Nomura Research said in a report.

Retail Ebitda is likely to remain strong—up 22% year-on-year and 6% quarter-on-quarter—on higher footfalls, Nuvama Research said.

"We estimate RIL's retail segment Ebitda to increase by 4% sequentially to Rs 5,100 crore, benefiting from a robust pace of store additions and rising footfalls," the Nomura report said.