Reliance Q3 results tomorrow: O2C weakness may impact consolidated Ebitda sequentially: Jio, retail to see steady show

livemint.com:

Reliance Industries will post its quarterly earnings report card on Friday. The expectations from Reliance Industries' consolidated December quarter performance remains a mixed bag with the Oil to Chemical (O2C) segment likely to see some pressure. The consumer-oriented retail and Jio (telecom segment) may see a steady quarter, and partially offset the weakness in Oil to Chemicals business.

The operating performance on sequential basis may see some decline as per analysts estimates, though on year-on-year basis will still be higher. On refining margin front, the volatility continued during the October-December quarter. The benchmark Singapore GRM ( Gross refining margins ) declined to $5.6 a barrel during the 3QFY24 from $9.5 a barrel in 2QFY24.

The Petchem margins trend also remained downward in 3QFY24. The Petchem prices declined 3% sequentially and 4% YoY in 3QFY24. Also Read- IndusInd Bank Q3 Result Preview- Loan growth expected to remain healthy “We expect consolidated Ebitda to decline 2% sequentially (up 13% year on year)", said analysts at Kotak Institutional Equities in their Q3 preview.

With weak refining and petchem, flat Exploration & Production (lower HPHT price, offset by lower costs), they expect standalone Ebitda to decline 9% sequentially (up 16% year-on-year). Ebitda stands for Earnings before interest tax depreciation and amortisation. For telecom arm Reliance Jio, Kotak expects Ebitda to rise 4% sequentially (14% year-on -year).