Reliance Industries Q4 results 2018 today; Mukesh Ambani firm reports net profit at Rs 9435 crore
Reliance Industries share price hit a record high on expectations of positive Q4 earnings. The stock rallied as much as 3.62 per cent to hit its lifetime high of Rs 1010.70 on the BSE.
Reliance Industries Q4 results 2018: Mukesh Ambani led RIL, country's second most valuable company, is all set to report a net profit for the 13th straight quarter today when it announces its March results later in the day. Going by estimates, RIL may report record profit of Rs 8600 crore, but margins may remain under pressure.
Reliance Industries share price, meanwhile, hit a record high on expectations of positive Q4 earnings. The stock rallied as much as 3.62 per cent to hit its lifetime high of Rs 1010.70 on the BSE. The company could possibly be the next Indian firm to hit the $100 billion mark after Tata Consultancy Services achieved this feat on Monday. RIL needs just 3 per cent gains from from its lifetime high to hit the $100 billion mark in terms of market capitalisation again.
Here is what brokerages expect from Reliance Industries Q4 results 2018:
1) Edelweiss Securities
We estimate standalone PAT to rise 2 per cent QoQ to ~86.5 bn. We expect 5 per cent lower refining EBIT QoQ with GRM of $11.1/bbl. Petchem earnings to likely improve 11 per cent as new capacities ramp-up in addition to robust cracker and polymer margins. We expect continued benefit from US ethane imports and recently commissioned off-gas cracker.
2) Kotak Securities
We expect modest qoq increase in standalone net income led by (1) steady refining margins at $11.6/bbl and (2) increase in petchem volumes, which will be partially offset by moderation in margins. Consolidated net income will be boosted by an increase in Jio's EBITDA due to an increase in revenues; we expect Jio to report modest profits of Rs 8.1 bn as compared to Rs 5 bn in 3QFY18.
3) KR Choksey
Reliance Industries is expected to report a GRM of $13.7/bbl in the refining segment supported by higher crude prices and higher crude throughput at 17.9 MMT as against 17.7 MMT in the previous quarter. We expect the petchem segment to perform well owing to improved margins supported by a strong volume growth in production at 8.1 MMT (up 30.6% YoY, 1.3% QoQ). We expect increased revenues from the telecom segment (Rs 1,04,602) due to increase in the subscriber base. We expect the PAT to be at around INR 1,09,953 mln (up 36.5% YoY, 16.4% QoQ) with contribution increased due to the off gas cracker project as well as US ethane imports.
4) Bank of Baroda Capital
Consolidated earnings estimated at Rs 91.2 bn (+13.3 per cent YoY, –3.4 per cent QoQ) and EBITDA at Rs 174.9 bn (+43 per cent YoY, –0.5 per cent QoQ) on higher petchem and Reliance Jio (RJio) earnings.
- QoQ earnings decline to stem from higher depreciation (at Rs 50.3bn, +11% QoQ) on commissioning of the petcoke gasification plant
- GRMs estimated at US$ 11.8/bbl (+2.6% YoY, +1.7% QoQ). Refining EBIT likely to dip to Rs 59bn (–6.0% YoY, –4.1% QoQ) on higher crude prices
- Petchem EBIT expected to surge to Rs 66bn (+92.0% YoY, +14.8% QoQ) on commissioning of ROGC and petcoke gasification units
- RJio EBIT to improve to Rs 17bn (+18% QoQ) on ~23mn subscriber additions in Q4FY18, but ARPU likely to reduce to Rs 150 (from Rs 154 QoQ)
- Refining throughput 17.8mmt vs 17.7 mmt petchem 8.4mmt vs 8 mmt
5) Elara Capital
RIL GRM is expected to decline by $0.5/bbl YoY and USD0.6/bbl QoQ to USD11.0/bbl, though its GRM decline is lower as compared to PSU OMCs peers on strengthening of Arab light-Arab heavy crude differentials by $1.5/bbl YoY to $ 2.7/bbl.