Reliance Industries (RIL) is expected to announce its results for the third quarter ended December 2015 on Tuesday. Analysts are expecting a blockbuster quarter for RIL due to higher refining margins and firm petrochemical prices.
For the quarter ended September 2015, RIL posted 12.53 per cent year-on-year and 8 per cent quarter-on-quarter growth in its consolidated net profit figures to Rs 6,720 crore.
KR Choksey Shares and Securities expects a good quarter for RIL with net profit growth of 73 per cent yoy and 37 per cent on qoq basis. The brokerage house said, “We have assumed RIL’s GRMs at $11.6 per barrel as compared to $10.6 per barrel in Q2FY16 and $7.3 in Q3FY15. EBITDA to increase 29 per cent yoy and 34 per cent qoq which reflects higher refining margins and firm petrochemical prices.
The company posted the highest GRM in last seven years at $10.6 a barrel for the quarter ended September 2015 against $10.4 a barrel in the preceding quarter. According to KR Choksey, “The company may post record gross refining margins (GRM), driven by higher product cracks, higher refining and petrochemical volumes and stable petrochemical margins.”
GRM is the difference between the total value of petroleum products coming out of an oil refinery (output) and the price of the raw material, (input) which is crude oil. The margins are calculated on a per-barrel basis.
According to Sharekhan, RIL is expected to post double digit growth for the quarter under review.
At 12.45 pm, Reliance Industries shares were trading 2.74 per cent up at Rs 1,045.85.