Petrochemical major Reliance Industries is set to deliver its best ever quarterly earnings on Friday. Its fourth quarter standalone net profit is expected to be Rs 6,000 crore, a growth of 18 percent compared to Rs 5,085 crore in third quarter of financial year 2014-15, according to the average of estimates of analysts polled by CNBC-TV18.
However, revenue is likely to be at Rs 65,000 crore during January-March quarter against Rs 80,196 crore in previous quarter.
Gross refining margin (GRM) of the company is set to surge to a 2-year high of USD 9.9 a barrel against USD 7.3 a barrel in previous quarter.
Some brokerages also said there was a possibility of Reliance reporting a GRM of USD 11 a barrel . Singapore GRM was USD 8.4 a barrel during March quarter against USD 6.3 a barrel in previous quarter.
The improvement in GRM may be on account of improved crack spreads in key products and also due to the absence of significant inventory losses. Crack spreads were buoyed by a 30 percent reduction in crude prices and planned/unplanned refinery outages.
During the quarter, refining throughput may have fallen due to planned shutdown but surge in GRMs could offset that fall. Petchem profitability may improve sequentially as Q3 was impacted by low realised spreads on deferred purchases by consumers.
Disclosure: Reliance Industries has acquired management control of Network18, which owns TV18 Broadcast and moneycontrol.com.
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