Reliance Industries, the country’s largest private sector conglomerate, is bracing up for a weak performance in April-June. Most analysts expect the company to report a decline in its earnings in April-June today. The net profit estimates of various brokerages range between Rs 4,390 crore and Rs 4,653 crore.
According to a CNBC-TV18 poll, sales are expected rise around 5 percent to Rs 85,300 crore.
Brokerages widely expect the Krishna-Godavari output to fall to around 34 million metric standard cubic meter per day. They have also estimated a decline in gross refining margins - the margin the company gets on refining. The estimates range between $6.8 per barrel and $7. The likely weak performance of the company has been attributed to a fall in gas output from the KG basin.
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Chart : Sanjit Oberai / Firstpost[/caption]
However, a weak rupee is seen supporting. “RIL’s efforts to become an integrated oil company have been set back due to sub-par performance from upstream assets,” HSBC said in a recent research report.
“Other diversification efforts have not yielded the desired result, but we believe the disappointment is in the price; stock should now trade in line with downstream margins,” the research report said.
Shares of the company were down 1 percent at Rs 719 ahead of its earnings.