Reliance Industries to declare Q1 results today: Key focus on Reliance Jio, petrochemicals businessTelecom-to-oil conglomerate Reliance Industries (RIL) will announce its earnings for the quarter ended June post market hours today.
The Mukesh Ambani-led firm is expected to focus on its telecom business in the Q1 earnings and the annual general meeting (AGM). RIL will hold its AGM tomorrow where it is expected to give a lowdown of its telecom arm business Reliance Jio, new tariff plans and 4G phones expected at a price tag of Rs 500.
The company will post a standalone net profit of Rs 8292.40 crore, up 9.9 percent compared with Rs 7,458 crore in the corresponding quarter last year, according to the estimates of brokerage firm Motilal Oswal.
“We expect subdued profitability in the refining segment; petchem profitability is expected to increase YoY/QoQ, led by improved deltas and an increase in petchem volumes. We expect RIL to report GRM of $10 per barrel against $11.5 per barrel in Q4FY17 and 1QFY17,” Motilal Oswal said in a research note.
The earnings and the AGM announcement are likely to affect the RIL stock which is trading near its fresh nine-year high of 1,558.80 points on the BSE.
RIL, which operates the world’s largest refining and petrochemicals complex at Jamnagar (Gujarat), is expected to report consolidated net sales of Rs 76,326 crore and net profit of Rs 7,764.5 crore for the three months ended 30 June, according to a Bloomberg Poll of six brokers. A year ago, the figures were Rs 71,451 crore and Rs 7,113 crore respectively.
The poll expects the firm’s stand-alone net sales to come at Rs 63,084.70 crore and a Bloomberg poll of five brokers expects the stand-alone net profit to come in at Rs 8,119.60 crore.
In a report dated July 11, Nomura Research said, “RIL may report a tenth consecutive quarter of stand-alone earnings increase. However, with the sharp strengthening of the rupee, we think sequential stand-alone earnings would largely be flat.”
The company may report EBITDA growth of 15.1 per cent on Y-o-Y basis.
The RIL stock was trading 0.39 percent or 6 points higher at 1,539 level on the BSE.
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