Reliance Industries Limited (RIL) is scheduled to report its earnings for April-June quarter of FY21 later today. Analysts expect the earnings of the Mukesh Ambani-led oil-to-telecom conglomerate to be little subdued amid the ongoing coronavirus crisis which may have hit its refining, petchem and retail businesses. Crude oil prices hit record low in the starting half of the first quarter of the ongoing fiscal owing to stagnant industrial activity and muted demand. However, amid expectations of weak performance by RIL, its telecom arm Jio may remain an outlier, unaffected by the disruptions.
According to a Bloomberg poll, RIL might report a net profit at Rs 7,119 crore as against Rs 10,104 crore in the corresponding period of last year. The analysts expect the revenue to stand at Rs 1 lakh crore.
Motilal Oswal expects consolidated profit to fall 1.5 per cent on-year but surge 4.3 per cent QoQ to Rs 9,993.2 crore for the quarter under review. Net sales may fall 24.1 per cent. Gross refining margin (GRM) may come in at $9.0 per barrel as against $8.1 a barrel in Q1FY20 on account of inventory gain. The lower petchem volumes may be offset by improvement in margin, the analysts at domestic brokerage also said.
"We expect consolidated EBITDA at Rs 20,700 crore (down 3 percent YoY and 5 percent QoQ) and standalone EBITDA at Rs 11,400 crore (down 16 percent YoY, flat QoQ)," Motilal Oswal added.
On the other hand, Jio is expected to outperform and cushion RIL's weak performance. Analysts at Kotak Institutional Equities expect earnings before interest, taxes, depreciation, and amortization (EBITDA) to rise by Rs 1,060 crore QoQ owing to a modest jump in subscriber base to 396 million and average revenue per user (ARPU) to Rs 137 per month. RIL may post 26.7 per cent fall in net profit on-year. The net sales may dip 30.7 per cent, it added.Also read: Gold price climbs to all-time high of Rs 53,297; silver above Rs 65K mark