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Reliance Jio, Retail likely to be strong in Q3; petchem could see some pressure

Edelweiss expects Jio to add 30 million subscribers during the quarter, and a 2.6 percent jump in ARPUs.

January 20, 2020 / 05:27 PM IST

Oil-telecom-and-retail major Reliance Industries is expected to continue to report robust growth in consumer segment, telecom and retail arms, with steady refining business, but petchem is likely to be under pressure due to reduced margin for the quarter ended December 2019.

Overall, consolidated revenue for the quarter could be higher by 2-7 percent sequentially, but profit and operating income may be flat to moderately high as strong telecom and retail segments could be offset by weaker petchem business.

Brokerages expect Q3 gross refining margins (GRM), which are closely watched by the Street, at around $9-10 per barrel against $9.4 a barrel reported in the September quarter, which may support standalone earnings but could be offset by weak petchem margin.

Motilal Oswal expects GRM at around $9 a barrel, with a huge premium of $7.3 a barrel to Singapore GRM, while Kotak Institutional Equities expects the GRM at $10.5 a barrel on the higher side for the quarter.