Moneycontrol PRO
HomeNewsBusinessMarketsRefining, telecom biz may boost RIL Q2 earnings; GRM could increase to $9.5/bbl

Refining, telecom biz may boost RIL Q2 earnings; GRM could increase to $9.5/bbl

Brokerages expect the Reliance Jio subscriber growth to be robust with significant addition of users in Q2.

October 18, 2019 / 11:24 IST
     
     
    26 Aug, 2025 12:21
    Volume
    Todays L/H
    More

    Reliance Industries, the country's largest company by market capitalisation, is expected to report good set of earnings for the July-September quarter with the gross refining margin rising 17 percent compared to the June quarter.

    The stock rallied 6 percent during the quarter, but surged 25 percent year-to-date.

    Most brokerages expect gross refining margin (GRM) at $9.5 a barrel for the quarter ended in September, against $8.1 a barrel in Q1FY20. Singapore complex margin was strong at $6.5 a barrel during the quarter against $3.5 per barrel in Q1. As a result, refining EBIT growth could be in double digit QoQ.

    Also Read - RIL hits Rs 9 lakh crore m-cap, becomes most valued Indian company

    Hence, brokerages feel higher gross refining margins, petchem volumes, telecom and retail businesses are expected to contribute to earnings. A lower tax cost could also be supported profitability.

    "We expect standalone EBITDA to increase led by higher refining margins at $9.5 per barrel (up $1.4/bbl QoQ) and petchem volumes, which will be partly offset by lower crude throughput amid shutdown and moderation in overall petchem margins," said Kotak Institutional Equities which sees 9 percent growth in profit QoQ.

    The brokerage feels consolidated EBITDA will be further boosted by higher contribution from Jio amid rising subscriber base and steady ARPUs and retail segment amid sustained, albeit a tad slower growth in revenues.

    HDFC Securities also expects RIL's EBITDA to increase due to higher refining EBITDA.

    Petchem volumes should rise by 9.5 percent due to shutdowns in Q1 while unit EBITDA is expected to fall 10 percent owing to lower polymer spreads, the brokerage said, adding refinery crude throughput is likely to be 8.2 mmt against 7.5 mmt in Q1FY20.

    Brokerages expect the Reliance Jio subscriber growth to be robust with the significant addition of users in Q2.

    Key issues to watch out for would be GRM outlook, petrochemical margins, telecom subscribers, future capex and clarity on InvIT valuations for Jio’s fibre assets.

    Disclaimer: Reliance Industries Ltd, which also owns Jio,. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.

    Moneycontrol News
    first published: Oct 18, 2019 11:18 am

    Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!

    Subscribe to Tech Newsletters

    • On Saturdays

      Find the best of Al News in one place, specially curated for you every weekend.

    • Daily-Weekdays

      Stay on top of the latest tech trends and biggest startup news.

    Advisory Alert: It has come to our attention that certain individuals are representing themselves as affiliates of Moneycontrol and soliciting funds on the false promise of assured returns on their investments. We wish to reiterate that Moneycontrol does not solicit funds from investors and neither does it promise any assured returns. In case you are approached by anyone making such claims, please write to us at grievanceofficer@nw18.com or call on 02268882347