RIL Q3 PAT seen down 7.3% at Rs 4983.1 cr: Motilal Oswal

Motilal Oswal has come out with its earnings estimates on Reliance Industries (RIL) for December quarter FY13. According to the research firm, the company's Q3FY13 sales are likely to go up by 4% at Rs 93,915.7 crore, Quarter-On-Quarter (QoQ) basis.

The company's net profit is seen down 7.3% at Rs 4983.1 crore, QoQ.

The research firm estimates RIL to report Q3FY13 GRM at USD8.5/bbl v/s USD9.5/bbl in Q2FY13. Singapore GRMs plunged 29% QoQ due to weak fuel oil cracks. However, petchem profits are unlikely to increase due to subdued product spreads. Expects average 3QFY13 KG-D6 volumes of 24mmscmd v/s 29mmscmd in 2QFY13.

RIL trades at 11.6x FY14E adjusted EPS of INR70.8. Motilal Oswal maintain Neutral due to concerns on cash utilization, RoE reaching sub-15% and increased share (80%) of cyclical refining and petchem businesses in its earnings.