Reliance Industries (RIL) is set to announce its December-quarter earnings on Friday. A sequential recovery is expected for both the petrochemical and the refining business of the company in Q3.
Singapore's benchmark gross refining margins (GRMs) have improved. From negative $0.9 per bbl in Q1, they have come in positive territory. There has been a continuous improvement and that is why GRMs are expected to improve for the company.
This time, in Q3, $6 per bbl is expected because cracks across the product have been improving and it will be a sequential improvement.
There has been a demand improvement and that is why the prices have gone higher. Margins are expected to be higher. Volumes also have shown some improvement and that will be seen in EBIT this time at Rs 5,800 crore. It is an increase of 20 percent on a sequential basis, a 1 percent improvement on a year on year (YoY) basis.
Disclosure: Network 18, which publishes cnbctv18.com, is a part of the Reliance Group.
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