RIL may post over 25% growth in Q1 consolidated net profit; GRM may fall to $9.5 per barrel

Reliance Industries (RIL) is likely to register over 25 per cent rise in consolidated net profit figures for the quarter ended June 30, 2016. However, gross refining margins (GRM) of the oil company may fall marginally on account of lower product cracks.

According to KR Choksey Shares & Securities, the brokerage house may register net profit growth of 27 per cent on year-on-year basis to Rs 7,786.6 against Rs 6,137 crore in the corresponding quarter last year. For the quarter ended March 31, 2016 the company reported net profit of Rs 7,398 crore, up 15.94 per cent, against Rs 6381 crore in the corresponding quarter a year ago.

However, sales of the company may fall by 25 per cent on year-on-year and 4 per cent on quarter-on-quarter basis, KR Choksey Shares and Securities said in a research report. Gross sales of the company slid 10.70 per cent on year-on-year basis to Rs 60,252 crore during Jan-March quarter against Rs 67,470 crore in the same quarter last year.

The brokerage house believes that RIL may post lower GRM’s at $10.1 per barrel on account of lower product cracks against $10.8 per barrel in the last quarter of previous financial year. GRM is the difference between the value of petroleum products coming out of an oil refinery and the price of the crude oil.

Brokerage firm Motilal Oswal sees GRM at $9.5 per barrel for the quarter ended June 30, 2016 against $10.4 per barrel in the first quarter of the previous financial year. The brokerage house expects RIL to report standalone net profit of Rs 6,450 crore.

RIL reported standalone net profit of Rs 6,318 crore in the corresponding quarter last year.

At 12.14 pm, shares of RIL were trading 0.87 per cent up at Rs 1,015.20.

Reliance Industries Limited (RIL)