Shares of Mukesh Ambani-led Reliance Industries gained as much as 3 per cent in intraday on Thursday ahead of its March quarter earnings report slated to be released later today. The industry experts expect the country's largest private sector enterprise to report flattish net profit growth and lower petchem earnings due to weak margins, as per the Economics Times report.
The market experts opined that RIL's retail segment may see robust growth, while its telecom arm Reliance Jio may report margin decline in average revenue per user (Arpu) on Quarter-on-Quarter basis, the ET reported. The investor will also keep an eye on the margin outlook of refinery and petchem business of RIL, it said.
"We see lower petchem earnings due to margin weakness. Retail EBIT to grow by 8 per cent QoQ and Jio is expected to see 307 million subscribers. The telecom arm may report a slight decline in Arpu qoq to Rs 129," Emkay said in a report.
Equirus Securities expects RIL's net profit and EBITDA to grow by 4.20 per cent and 1.90 per cent year-on-year. The brokerage firm forecasted that its net sales may see 23.5 per cent year-on-year rise. It expects a GRM of USD 8.30 per barrel due to fall in cracks.
In the third quarter ended December 31, 2018, oil to telecom conglomerate RIL reported a 8.8 per cent growth in its net profit at Rs 10,251 crore, helped by record performance in its petrochemicals, retail and telecom businesses. RIL was the first Indian private sector company to cross the Rs 10,000 crore profit mark.
The company's refining business reported revenues of Rs 1,117,00 crore in the December quarter, while petrochemicals business saw its revenues rise 5.7 per cent q-o-q to Rs 46,246 crore.
Meanwhile, the company' telecom arm, Reliance Jio, posted a net profit of Rs 831 crore in October-December quarter, up 22.1 per cent q-o-q.
Reliance Industries share price were currently trading at Rs 1384, up 2.88 per cent, on the Bombay Stock Exchange.
Edited by Chitranjan Kumar