Stock Outlook: RIL Could Post High Profits With Rupee Being Weak

by khalid on 15/10/2011 · 1 comment

Reliance Industries is going to post its July-September results on Saturday. Reliance is probably going to benefit from weak rupee and also from the strong refinery margin. The falling gas output from the KG-D6 oil fields and the margin pressure in the petrochemical business, reliance will face difficulty in maintaining its year on year performance. All the experts are positive about the results that Reliance is going to post. The company which has the largest market capitalisation in the country is expected to post an increase of 15-18% increase in profits. The revenues of the company are expected to increase by 38-40%. The decline in the value of rupee against dollar is definitely a positive sign for dollar as 60% of its revenues come from exports. The Gross refining margins and petchem realisation are benchmarked to dollar.

The Gross Refining Margins is expected to be around USD 11/bbl versus $7.9 bbl year on year. There are some pressure from the lower petchem margins and lower gas production from the KG-D6 oil wells at around 45 millions metric standard cubic meter per day.

The net profit in this quarter could go up by 17.8% at Rs. 5799.2 crore year on year which is largely benefiting from the declining rupee that has seen a large decline. Some important developments that could impact the results are the consummation of RIL-BP deal. The Government had approved the deal in the last quarter. The RIL stock has seen a rise of 6% this week.

Bell The Bull says: RIL Expected To Post Positive Results This Quarter

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