RIL Expected to Post Net Profit of Rs 6,214 Crore in Q1

Reliance Industries (RIL), the operator of the world’s largest refinery in Jamnagar, is likely to post a small dip in its quarterly net profit on the back of lower refining margin in the June quarter.

On a sequential basis, RIL’s consolidated net profit is likely to drop 2.6 per cent to Rs 6,214 crore, while revenues are likely to inch up to Rs 67,807 crore, according to analysts polled by NDTV. The oil and gas major had reported a consolidated net profit of Rs 6,381 crore on revenues of Rs 67,470 crore in the March quarter.

Reliance Industries, which gets around 70 per cent of its revenue from refining, is likely to report gross refining margin of $9.5 per barrel during the quarter against $10.1 per barrel in the March quarter. Gross refining margin, a key gauge of profitability for refiners, likely fell on global cues.

Overall, RIL’s ebit margin is expected to inch up in the June quarter on account of recovery in thruput (rate of production). Pertochem segment ebit is seen rising to rise 25 per cent to Rs 2,510 crore against Rs 2,003 crore in the March quarter on account of increase in spreads in the polymer chain.

What to Look Out For

Reliance Jio, RIL’s telecom arm in which the company has put in an estimated Rs 90,000 crore, is expected to start by December. There’s expectation that the launch will be a game changer for the telecom industry, analysts say.

Stock Outlook

Analysts are mostly positive on RIL ahead of the earnings announcement. Reliance Industries shares have surged over 18 per cent in last three months as compared to 3.2 per cent gain in the broader Nifty, making it one of the best performing stock in the Nifty.

As of 12.30 p.m., Reliance Industries shares traded 0.5 per cent lower at Rs 1,040 apiece compared to 0.2 per cent fall in the broader Nifty.