The company is expected to continue to report robust growth in the consumer segment, telecom and retail arms.
The share price of Reliance Industries (RIL) rose over 2 percent on BSE in the morning trade on January 17, the day the company is to announce its December quarter earnings.
The company is expected to continue to report robust growth in the consumer segment, telecom and retail, 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 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.
Key things to watch out for would be the commentary on the number of subscribers added due to the impact of ARPU changes, closure of Aramco deal as a part of debt reduction strategy and IPO plans for retail business.
The Supreme Court, on January 16, dismissed a review petition filed by telecom companies seeking relief from the Adjusted Gross Revenue (AGR) verdict.
According to brokerage firm Edelweiss Securities, Bharti Airtel would be able to repay the dues and gain market share. It maintains a positive stance on Bharti and Reliance Jio.
However, the telecom companies may file a separate petition seeking a payment extension, it added.
In total, 15 telecom companies will have to pay dues worth Rs 1.47 lakh crore. The latest order indicates that licence fee dues will have to be made by January 23, 2020.The stock was up 1.93 percent at Rs 1,567.45 at 1120 hours.
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