RIL Q3 Results Preview: Double-digit earnings growth likely on strong show in refining, telecom, E&P and retail

RIL Q3 Results Preview: Double-digit earnings growth likely on strong show in refining, telecom, E&P and retail

Reliance Industries Ltd. The largest Indian company based on market capitalization, is likely to report growth in acceptance and revenue in the third quarter which ended in December 202, driven by strong performance in the purification business, telecommunications and E & P.

The oil-to-telecommunications and retail giants will declare the results for this quarter later.

Broker estimates that the Mukesh Ambani-LED company reports a growth of 50-60 percent year-on-year in its consolidated income at Rs 1.81-1.91 Lakh Crore for the quarter, and the growth of 12-16 percent in post-tax profit (PAT) to RS 14,800 -15,300 Crore for the quarter.

The company has reported the consolidation profit of RS 13,101 Crore on RS 1.18 lakh crore consolidation income for a quarter equivalent a year ago. The number for the previous quarter stood at RS 13,680 Crore with the company registering consolidated income Rs 1.7 Lakh Crore.

Estimated income

Oswal Motilal Brokerage Company estimates that strong growth in the O2c (Oil to Chemistry) business is followed by retail. This estimates growth in 61.7 percent in consolidated income to Rs 1.91 lakh Crore. Sequentially, this will be 13.7 percent growth.

It expects the refinery throughput at 17.2 mmt (million tons of metrics) with EBITDA per ton (Profit before interest, tax, depreciation and amortization) which increased to $ 116.6 in the increase in Singapore GRM and petrochemical margins.

“Singapore GRM increases QOQ further at Q3FY22, especially led by increased diesel and ATF cracks (which is almost double QOQ),” said Motilal Oswal in a report.

SG GRM in Diesel increased by $ 5.8 / bbl (billion barrels) in the quarter to $ 10.9 / bbl. PF ATF GRM (Flight Turbine Fuel) has increased $ 4.9 / BBL Qoq to $ 10.3 / bbl. This increase was assisted by the demand for celebration season in Asia and the increase in air travel in Western countries, respectively.

Naphtha prices increased to $ 81.7 / bbl from $ 73.6 / bbl at Q2FY22, with Cracks increased to $ 3.4 / bbl from $ 1.9 / bbl in Q2FY22.

Increased price of Pchetm (due to power allotment in China, which caused shutdowns in several units) assisted by Delta for PE (Polyethyline) and PVC respectively by 13 percent and 32 percent of each quarter (-3 percent) and 24 percent yoy), while PP (Polypropylene) is QoQ flat and down 16 percent yoy.

Motilal Oswal expects EBITDA consolidation to grow 39 percent yoy and 15 percent in the quarter to RS 30,000 Crore with EBITDA from the O2C business that entered at Rs 15,000 Crore, 73 percent growth in the year and 21 percent quarter.

EBITDA for telecommunications business is expected to grow 17 percent yoy and Qoq 5 percent to Rs 9,500 Crore, while retail is expected to reach a quarter of strong growth with EBITDA which grew 41 percent yoy and 31 percent Qoq to Rs 3,600.

The broker estimated 16 percent growth in Pat at Rs 15,300 Crores, 8 percent sequential growth.

JP Morgan International Broker estimates strong recovery in purification and E & P (exploration and production) to encourage income growth.

“Overall two main components of the margin of corporate refinement, diesel and jet kero have seen cracks increased because transportation has increased,” said the broker in his report.

The cracks for two critical products must continue to increase in CY22 because transportation increases further, regardless of the impact of short-term omicron, he said.

JP Morgan estimates strong growth in retail business while Telecom and Petchem is expected to remain stable.

The SG GRMS company can increase from $ 5 / bbl in the previous quarter to more than $ 8 / bbl in this quarter, he said, estimating EBITDA consolidation at RS 28,259 Crore with 9 percent sequential growth and yoy growth of 31 percent.

Net income was set at Rs 15,033 Crore with growth in 15 percent and 10 percent sequential growth.

Institutional equity boxes also expect strong growth throughout the business and estimate 55 percent growth in consolidated income at 1.80 lakh crore Rs, 7.5 percent sequential growth.

It expects EBITDA from RS 28,000 Crore with yoy growth of 30 percent and 7.8 percent sequential growth.

“We hope that EBITDA Mandiri RIL increased by 15 percent QoQ reflecting (1) Increasing in the underlying and (2) pchetm margins and (2) possible volume for both segments,” the box said in a report.

Apart from this, it expects EBITDA to (1) Jio to increase by 4 percent of Qoq led by a higher ARPU, which is partially balanced with a cost increase and (2) for a retail increase of 27 percent QoQ driven by a sustainable strong rebound during the season celebration.

Pat is expected to RS 14,820 Crore for the quarter at yoy growth of 12.1 percent and 8.4 percent Qoq.

The dependency industry stock closed at Rs 2,477.5, down RS 44.1 (1.75 percent) from the previous closing, on the national stock exchange on January 20. Stocks rose 21 percent over the past year and have resulted in a 9 percent return for the past month.

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