Decline in KG-D6 output to weigh on RIL's Q1 numbers
Upstream concerns will trigger a muted growth of around 5% to the tune of Rs 5,600 crore in Reliance Industries’ (RIL) net profit for the June quarter, say analysts.
July 25, 2011 / 01:41 PM IST
Reliance Industries (RIL) is likely to see a muted net profit growth of 5% round Rs 5,600 crore in the April-June quarter on upstream concerns, say analysts. However, analysts across brokerages expect sales to grow around 8% at Rs 78,488 crore (QoQ), which is in line with the company's historical trend
The oil & gas major is slated to announce its results on Monday post closure of trading hours.
Due to technical glitches, output from its KG-D6 oil wells off Andhra coast declined to 48 mmscmd (million metric standard cubic meter per day) from 60 mmscmd during the quarter. In fact, the oil and gas bellwether has underperformed the benchmark Sensex by 12% over the last three months on these concerns.
A 20% decline in D6 production would impact earnings per share (EPS) by approximately 4% for the quarter, say industry experts.
Deven Choksey, managing director at KR Choksey Shares and Securities told moneycontrol.com that