Outlook for Q3FY17 of RIL

Reliance Industries (RIL) is expected to show eighth consecutive sequential jump in net profit on strong gross refining margin. The bottomline of the company is seen rising nearly 2 per cent on a quarterly basis to Rs 7850 crore in Q3FY17.

RIL’s gross refining margin (GRM) is expected at USD 11.5 a barrel in Q3FY17 as against USD 10.1 a barrel in the previous quarter. The refining throughput is expected at 17.6 MMT in Q3FY17, as against 18 MMT in Q2FY17. Its refining EBIT is likely to be Rs 6700 crore, as against Rs 5900 crore and petrochemical EBIT is likely to be Rs 3000 crore as against Rs 3464 crore on a sequential basis.

RIL’s expectations on strong refining may be driven by improved margins and inventory gains. The company’s newly launched vertical telecommunication’s announcement will be watched on the result day. In December, Reliance Jio offer was extended till March 31, 2017. Meanwhile, the extension of the 'Happy New Year' plan will also play a major role in Monday’s announcement.