Reliance Industries (RIL) dipped nearly 2 per cent on Monday to Rs 1,345 levels on the NSE, after the company reported a 9.8 per cent jump in its net profit for the January – March 2018 quarter of the financial year 2018 – 19 (Q4CFY19) on Thursday. The gross refining margins (GRM), however, were a disappointment at $8.2 per barrel, compared to $11.1 per barrel y-o-y. The March 2019 quarter GRM is the lowest since the October-December 2014 period, which was at $7.3 per barrel.
Here’s how leading brokerages have interpreted the numbers:
Refining was expectedly weak with margins at an 18-quarter low of US$8.2 with segment EBITDA now 40% lower than its peak six quarters back. Equally, though, Petchem EBITDA was resilient near all-time highs even with lower volumes although margins have since begun to soften. Domestic E&P was weak and US Shale had negative EBITDA again.
