Reliance Industries Q1 PAT seen up 18% YoY: Poll

Moneycontrol Bureau

Reliance Industries (RIL) is expected to report 18 percent year-on-year jump in Q1 profit to Rs 5279 crore, states a poll conducted by CNBC Awaaz. Its Q1FY14 sales are likely to decline 2.5 percent to Rs 89,597 crore YoY.

Analysts expect gross refining margins (GRMs) to average at around USD 8.3-USD 8.5/bbl versus USD 7.6/bbl.

Factors that will impact RIL’s June quarter numbers include

Brent crude price averaged at USD 103/bbl down 9 percent QoQ and 5 percent YoY Rupee has depreciated 3 percent YoY and  around 9 percent since the end of Q4.

SCRMs (Singapore or Regional GRMs) averaged at USD 6.7/bbl vs  USD 8.7/bbl QoQ (down 24 percent) and USD 6.7/bbl YoY

Inventory losses due to fall in crude prices and weakness in regional GRMs will lead to weaker GRMs sequentially.

Refining throughput expected to return to 17.6 metric tonne as againsts 16.1 MT QoQ; higher throughput is likely partly offset weakness in GRMs.

KD-G6 gas production is expected to average at 15 metric million standard cubic metres per day (mmscmd) down  around 4 mmscmd as against 19.2 mmscmd QoQ and 33 mmscmd YoY

Expansion in polymer prices and sales and a weak rupee to support the petchem segment.

Higher refining throughput and expanded petchem margins to help offset weakness in GRMs and lower gas production QoQ. Higher other income due to weak rupee and high cash levels is likely to boost the bottomline.

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