RIL Q4 Preview: Refining Margin Likely To Offset Lower Petchem Spreads
Reliance Industries Ltd.'s fourth-quarter net profit is expected to fall even as its consolidated revenue is seen rising sequentially.
The refining-to-retail conglomerate controlled by Mukesh Ambani is likely to see its consolidated net profit (adjusted from extraordinary items) fall 18% sequentially and 11% over a year earlier to Rs 20,539 crore in the quarter ended March, according to an average of analyst estimates tracked by Bloomberg. The company had reported exceptional income both in the prior quarter and a year ago.
Consolidated revenue of the nation's biggest company by market value is expected to increase 16% sequentially, while it is expected to fall 30% year-on-year.
Operating income or Ebitda is estimated to jump 6% sequentially and fall 26% over a year earlier.
RIL announces its third-quarter results on Friday.
Oil-To-Chemicals
Refining margin of Reliance's oil-to-chemicals segment is expected to rise sequentially, aiding the segment's EBIT.
Earnings will be aided by an increase in Singapore gross refining margin to $8.0 a barrel from $6.1 a barrel on higher petrol and diesel cracks.
Its upstream or exploration segment may see a downtick on lower gas volumes.
Oil-to-chemicals segment earnings would improve with higher refining margins offsetting lower petchem spreads.
Telecom
Reliance Jio Infocomm Ltd. will benefit from higher tariffs, flowing through average revenue per user. ARPU is expected to rise 7% sequentially to Rs 162, offsetting weak subscriber addition trend.
The company is expected to see its subscribers fall by 80 lakh during the quarter.
Retail
Reliance Retail Ventures Ltd.'s operating profit is expected to rise 10% sequentially from increased store footprint over the past few quarters and demand for its grocery and fashion segments.
(The earnings preview has been compiled from report by Credit Suisse, CLSA, Abmit, JPMorgan and Prabhudas Lilladher)
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