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The company has shown better performance in terms of gross refining margins. Given the higher crude oil prices and their ability to source heavy duty crude at a lower price, the GRM in the third and fourth quarter should remain high, says Deven Choksey, Managing Director at KR Choksey Investment Managers.
Watch the interview of Sudeep Anand of IDBI Capital Markets & Securities with Latha Venkatesh and Sonia Shenoy on CNBC-TV18. He shared his expectations on Q2 FY17 numbers of Reliance Industries Ltd (RIL).
Petrochemical major Reliance Industries (RIL) is expected to report standalone profit at Rs 7,266 crore for July-September quarter against Rs 7,548 crore in preceding period, according to average of estimates of analysts polled by CNBC-TV18.
Net Sales are expected to decrease by 0.8 percent Q-o-Q (down 12.7 percent Y-o-Y) to Rs 53085.9 crore, according to Religare.
With maintaining buy rating, Goldman Sachs says it likes RIL's exposure to three themes - high refining complexity, high gasoline yield and organic earnings growth.
In an interview with CNBC-TV18, he said that operational performance of refining segment was much better and refining; petrochemical could see better times ahead.
A number of large companies have posted results since the earnings season started Thursday last week.
After consistently falling for some quarters, the share of other income in Reliance Industries' total net profit of Rs 7,113 crore in the June quarter has substantially jumped to 34.5 per cent or Rs 2,378 crore.
The difference between Reliance Industries' (RIL) gross refining margins (GRM) at 11.5 percent was at a eight year high with the Singapore benchmark, CFO Alok Agarwal said.
Petrochemical business can grow further, said Prakash Diwan. Delayed launch of Reliance Jio is an overhang on the stock, he said. Market experts SP Tulsian, Deven Choksey and Sudip Bandopadhyay also weighed in on the results.
Sales are expected to decrease by 4 percent Q-o-Q (down 25 percent Y-o-Y) to Rs 57937.9 crore, according to KR Choksey.
The next trigger for the stock would be launch of Reliance Jio and the commentary on its expected performance, said Sudeep Anand of IDBI Capital Markets Services.
Gaurang Shah, vice president at Geojit BNP Paribas Financial Services, in an interview to CNBC-TV18, expressed his opinion on the upcoming results and expected impact on stock prices of companies like Maruti Suzuki, Axis Bank, ICICI Bank and few others.
SP Tulsian of sptulsian.com in an interview to CNBC-TV18 spoke about the fundamentals of stocks and sectors like cement, sugar, Reliance Industries and quarterly earnings of IndiaBulls Real Estate, M&M Financials.
In an interview with CNBC-TV18, Abhishek Agarwal of Macquarie Securities said that he does not expect the stock of Reliance to see a sustained up move.
Below are the highlights of Reliance Industries 4th quarter earnings
Tulsian said his estimates for the refinery margin had been after taking into consideration an inventory loss of about Rs 260 crore. However, the earnings before interest and tax (EBIT) for this business hints that the inventory management has been quite good.
RIL's earnings were boosted mainly by petrochemical margins, reduction in tax liabilities and interest expenses, analysts on CNBC-TV18 say.
Sudeep Anand of IDBI Capital Markets and Prayesh Jain of IIFL, share their expectations on Reliance Industries Limited‘s (RIL) fourth quarter earnings.
During the quarter, petro chemical EBIT is likely to be down 1 percent at Rs 2620 crore against Rs 2639 crore on sequential basis. Refining EBIT may be 4 percent lower at Rs 6233 crore versus Rs 6491 crore (QoQ).
The brokerage has increased RIL's target price to Rs 1,270 per share post the third quarter earnings.
IIFL's Prayesh Jain tells CNBC-TV18 the earnings growth can be sustained on the back of three new projects
Reliance Industries put up a strong set of quarterly results, with both gross refining margins and petchem business coming ahead of many analysts' expectations.
Mayuresh Joshi of Angel Broking said the RIL's gross refining margins (GRMs) were in line with expectations while numbers of the refining business were ahead of expectations.
Reliance Industries Limited (RIL) will announce its earnings on Tuesday after market hours. In an interview to CNBC-TV18, Deven Choksey of KR Choksey Investment Managers, lists his expectations.