Reliance Industries will declare its second quarter earnings (July-September) today. According to CNBC-TV18 poll estimates, analysts expect the company to report standalone net profit at Rs 5,600 crore as against Rs 5,649 crore in previous quarter.
They expect gross refining margins (GRMs) to decline in line with benchmarks, driven by lower middle-distillates cracks. Gross refining margins are likely to be between USD 7.7-8 a barrel (compared to USD 8.7 a barrel in Q1FY15).
Refining earnings before interest and tax (EBIT) is expected to decline around 25 percent Q-o-Q due to lower GRMs while petrochemical segment EBIT may expand around 30 basis points on sequential basis.
Oil& Gas business EBIT is likely to fall on quarter-on-quarter basis, as KG-D6 average production declined to around 12 mmsmcd (million standard cubic metres per day) during the quarter and oil prices remained low.
Other income is expected to be higher by around 6 percent Q-o-Q at Rs 2,100 crore in the quarter ended September 2014. Factors to watch out for are updates on polyester/intermediaries capacities commissioning, status on petcoke gasification and refinery off-gas cracker (ROGC) projects, outlook on E&P business capex and KG-D6 production.
Disclosure: Reliance Industries has acquired management control of Network18, which owns TV18 Broadcast and moneycontrol.com.
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