RIL Q3 result preview: PAT, revenue likely to see modest growth YoY on weak O2C show

economictimes.indiatimes.com:

growth in earnings for the quarter ended December.
However, the growth in both topline and bottomline is expected to be in single digits because of a weak show by the oil-to-chemicals (O2C) business. Meanwhile, numbers across parameters are expected to drop sequentially mainly because of the O2C vertical.
Consolidated revenue of RIL is likely to rise 5% YoY to Rs 2.31 lakh crore, but fall about 2% sequentially, according to the average of estimates given by nine brokerage firms.
Consolidated net profit is expected to grow 9.3% YoY to Rs 17,257 crore, but drop nearly 1% sequentially.
Earnings before interest, taxes, depreciation and amortization or EBITDA is expected to increase 4% YoY to Rs 40,030 crore, but fall sharply by 11% sequentially.
The toy-to-telecom conglomerate is scheduled to release its earnings after market hours on Friday.

Weak O2C Show

Weakness in both refining and petrochemical margins is likely to drag down the EBITDA of this vertical in double digits sequentially, analysts said.
The benchmark Singapore gross refining margins (GRMs) have fallen 14% YoY and 43% sequentially in the last quarter due to weak global product cracks.
“Expect O2C EBITDA to decline 11.7% QoQ to Rs 144 billion due to moderation in GRM to $10/bbl (vs implied GRM of $12.5/bbl in 2QFY24), driven by moderation in diesel cracks and Russian crude discount; further, it was also impacted by lower refining throughput due to maintenance shut down and continued weakness in petchem margin,” JM Financial said in its report.
In the September quarter, the O2C business constituted over 36% of RIL consolidated EBITDA.

Steady Digital Business

The digital business housed under Reliance Jio Infocomm is expected to have continued its