RIL Q1 PAT seen down 23% at Rs 4375cr

Its OPM is seen down at 8.1% versus 12.25%, YoY.

The company's PAT is seen down 22.7% at Rs 4,375 crore versus Rs 5,661 crore, YoY.

Quarter-on-Quarter

Its sales are seen up 2.7% at Rs 87,500 crore versus Rs 85,182 crore, quarter-on-quarter, (QoQ)

Its OPM is seen up at 8.1% versus 7.7%

Its PAT is seen up 3.3% at Rs 4,375 crore versus Rs 4,236 crore.

Highlights

Rupee weakness supportive for reported performance

Singapore Complex down 12% QoQ at $6.6/bbl

RIL GRM should be mildly higher than $7/bbl

Slightly better L-H spreads to help RIL outperform benchmark 

Throughput rise after Q4 CDU shutdown also supportive

Weak MS, naphtha cracks the key drags for refining

Petchem earnings have an element of surprise 

Weakness in polyester chain continued due to cotton

But polymer delta’s improved due to lower naphtha costs

Domestic demand key to petchem volume performance

Watch out for penalties / write-offs on relinquished blocks

Other Income remains the key support; 42% of PBT last qtr

Watch out for higher interest costs, forex losses

Expect +ve move if consensus met through core earnings

Street primed for a slight disappointment