80% rally in 1 year! RIL Q3 standalone profit to climb by 3% QoQ

Earnings before interest, tax, depreciation and amortisation (EBITDA) is likely to rise by 4 percent to Rs 13,496 crore for the quarter ended December, compared to Rs 12,983 crore reported in the previous quarter.

Analysts expect RIL’s gross refining margins (GRMs) to come in at around USD 11.6 per barrel compared to USD 12 per barrel reported in the previous quarter. GRM is the difference between the per-barrel price of crude and the value of finished products distilled from it.

Here’s what other brokerages are recommending:

Kotak Institutional Equities (KIE):

Higher petrochemical business is likely to offset refining business on a standalone basis. Lower IUC for Jio to boost overall results. KIE expects RIL to report 1 percent QoQ increase in standalone EBITDA to Rs 13,070 crore and 3 percent QoQ increase in net income to Rs 8,510 crore, despite sequentially lower refining margins at USD 11.6/bbl.

Kotak models RIL’s consolidated net income at Rs 8,710 crore (EPS of 14.7) in 3QFY18, factoring in modest profit of Rs 48 crore from Jio as compared to loss of Rs 270 crore in 2QFY18 led by reduction in IUC costs, which will be offset by likely ‘accounting’ of higher operating costs.

Sharekhan:

Sharekhan expects GRM of Reliance Industries (RIL) to decline on a sequential basis to USD 11.6/bbl in Q3FY2018 compared to USD 12/bbl reported in Q2FY2018.

The same would get offset by strong performance of the petrochemicals segment, which we expect to benefit from higher volumes (on account of ramp up of the recently commissioned petchem expansion projects) and feedstock benefit from U.S. ethane imports.

Overall, Sharekhan expects Q3FY2018 earnings of RIL to increase by 5.5 percent on a YoY basis (+2.4 percent q-o-q) to Rs 8,465 crore.

Disclaimer: “Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.”