Reliance Industries share price just Rs 2 away from lifetime high ahead of Q1 results
Reliance Industries Q1 results: he Mukesh Ambani-owned energy to telecom conglomerate may report a decline or marginal uptick in its net profit and gross-refining margin (GRM), while petrochemical earnings are expected to report strong performance.
Reliance Industries share price rallied over 2 per cent on Friday ahead of its June quarter earnings scheduled for later today post market hours. The Mukesh Ambani-owned energy to telecom conglomerate may report a decline or marginal uptick in its net profit and gross-refining margin (GRM), while petrochemical earnings are expected to report strong performance.
Ahead of Q1 results, RIL share price was trading strong, gaining as much as 2.36 per cent to Rs 1136.60 on the BSE. RIL's stock has rallied 21 percent in 2018 on top of a 70.5 percent surge in the previous year. It is jusr Rs 3 away from its record high of Rs 1,138.25 touched last week.
Brokerage Sharekhan expects GRM of Reliance Industries (RIL) to decline on a sequential basis to $10.5/bbl in Q1FY2019 against $11/bbl in Q4FY2018. The same would get offset by strong performance of the petrochemicals segment, which is likely to benefit from higher volumes on account of ramp up of the recently commissioned Refinery Off Gas Cracker and petchem expansion projects, and depreciation of Indian rupee, it said.
Overall, Sharekhan expects Q1FY2019 earnings of RIL to increase by 7.5 per cent y-o-y (+1.3 per cent q-o-q) to Rs 8,811 crore.
Brokerage Emkay Global expects a decline in RIL's Q1 net profit.
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“We estimate RIL’s petchem earnings to grow by 10 per cent quarter-on-quarter due to steady margins and higher volumes though the same will be offset by 8% decline in refining from weaker GRM. We estimate Ebitda to be up by 2 per cent on quarter though net profit would decline 2-3 per cent due to higher interest cost (from forex loss) and lower Other Income” said Emkay Global in a report dated 6 July.