See RIL's Q3 net profit at Rs 5,060cr: SP Tulsian

The flagship company of Reliance Group, Reliance Industries (RIL) is set to announce its results for the quarter ended December 2010 later today. According to CNBC-TV18's estimates, its net profit is expected to go up by 29.7% to Rs 5,200 crore in Q3FY11 as against Rs 4,008 crore in the same quarter of previous financial year and seen up by 5.6% from Rs 4,923 crore in previous quarter.
 
Sales are seen going up by 9.9% to Rs 62,500 crore from Rs 56,856 crore on a year-on-year basis and up 8.7% from Rs 57,479 crore on a quarter-on-quarter basis.

However, market expert SP Tulsian, who tracks Reliance closely, expects a PAT of Rs 5,060 crore this quarter, slightly lower than CNBC-TV18's projections. Tulsian told CNBC-TV18, that the closure of one unit at the Jamnagar Refinery will see less production of about 50 lakh barrels of crude oil. "So if I take a GRM which I have estimated at USD 8.90 per barrel that will straight away bring down their EBITDA. If I say that USD 8.9 per barrel straight away gets added to EBITDA by about Rs 200 crore and obviously that will bring down the topline also by about Rs 2,500 crore." He further said, "I have estimated the topline also at about Rs 59,450 crore while the consensus is at about Rs 62,000 crore. So the basic reason for the fall in the topline is largely on account of the Rs 2,500 crore on account of the less processing of 50 lakh barrels because from October 25 to November 16 one unit remained shut down. The total processing during that time with both refineries have been at about 1 million barrel per day while the rated capacity is 1.25." Tulsian added, "Secondly, you have concerns on the gas production also which I have estimated at 52 MMSCMD for the quarter. So these are largely the two reasons which I think. But the polyester segment is contributing, intermediates have been contributing to a great extent in better recovery. So Petchem segments will be showing a better performance. But I don