Reliance Industries: The Post Earnings Day Fall
Here’s a jinx Reliance Industries will try to break this time round.
Markets have not always cheered Reliance Industries Ltd.’s earnings, at least not on the very next day. A BloombergQuint analysis shows that the stock has ended lower five out of the last six times after earnings (which are released post market hours).
In fact, the Nifty has also shared the same fate on those days.
RIL is expected to post a sequential decline in profit for the first time in six quarters, this time round, with analysts projecting a $9.8 per barrel gross refining margin (GRM) in the second quarter, close to $2 per barrel lower to the first quarter of this financial year.
Net profit, on a standalone basis, is expected at Rs 7,233 crore, according to Bloomberg consensus estimates.
This represents an increase of 10 percent on a year-on-year basis and a decline of 4 percent on a quarter-on-quarter basis, as stronger petrochemical margins are expected to be offset by a sequential correction in the gross refining margin (GRM).
Will RIL be able to surprise the market or will this be the fourth straight quarter of a post-earnings decline for the stock?