Credit Suisse expects Reliance Industries' (RIL) Oct-Dec earnings to decline on quarter due to poor refining margins. Given the large correction in gasoline/naphtha cracks and the tightening of light-heavy crude oil spreads, our models suggest RIL may report third quarter GRM (gross refining margins) of $4.5-6.5/bbl; down significantly from the US$10.1 reported in second quarter, Credit Suisse said in a note.
At the upper band of the estimated refining margin, the company's net profit is seen 44.5 billion rupees, down 22 per cent on quarter.
Credit Suisse has cut target price for Reliance to 910 rupees from 1,022 rupees and maintained outperfrom rating.
At 11.28 a.m, the stock was up 1.44 per cent at 717.30 rupees.
Company INFO
More on Reliance Industries
Stocks
More on Reliance Industries
