Leading refiner Reliance Industries Ltd is expected to post a 6 percent drop in quarterly net profit, mostly due to a prolonged refinery shutdown and weak refining margins.
It will be the last earnings report for the company as a combined entity, before a spin-off of telecoms, some energy and financial units takes effect later this month - the result of a feud within the firm's founding family.
Margins on refining, which contributes about 56 per cent to Reliance's revenues, are seen at $7 a barrel in the fiscal third quarter ended Dec. 31, from $12 in July-Sept as its refinery in Jamnagar in the western state of Gujarat was shut for planned maintenance for more than 50 days in October and November.
Earnings for the full-year to March 2006 are forecast to rise 14 per cent to Rs 8979 crore ($2.03 billion), according to Reuters Estimates.
In the quarter ended December, Reliance's net profit is expected to drop to Rs 1917 crore, a survey of four brokerages showed, from 2091 crore a year ago. Net sales are seen 6 per cent higher at 18,750 crore.
"Refining was weak for Reliance this quarter because of the shutdown and lower refinery spreads, which were similar to Singapore levels," an analyst with a foreign brokerage said.
Revenue from the petrochemicals business is expected to remain stable even though polyester and polymer prices were not strong, Jaspreet Singh, an analyst from local brokerage Prabhudas Liladher said.
marketing@alchempro.com
