Robust Oil earnings set to drive Reliance's Q1 results

 Retail to benefit from low base; tariff hikes to power telecom growth.

• Quarter 1 comes to an end, Reliance Industries is showing great numbers the quarter ended April - June, i.e., the first quarter of  2022-23,  driven by robust oil earnings.
• Both the retail and telecommunication segment of the company is driving well, retail operations is will benefit from a favorable base while telecom growth is driven by more subscriber additions and tariff hikes.
• According to Bloomberg poll of analysts, in Q1 of FY23, with a net sales of Rs.2.25 trillion, a consolidated net profit of Rs.21,615 crore is expected by the company.
• EBITDA, ie., Earnings before Interest, Tax, Depreciation, Amortisation is likely to come in at Rs. 39,474 crore.
• When compared with last year the top line will grow 56 percent, while EBITDA and profit after tax ie, the net profit will grow nearly 40 percent and 76 percent. This is based on bloomberg's consensus estimates for Q1.    
• The April-June period of FY23 will be significantly influenced by higher gross refining margins (GRMs) the company saw during the quarter due to spike in crude oil prices, as well as the refining boom due to the Russia-Ukraine war," says Deven Choksey, managing director at Mumbai-based brokerage K R Choksey.
•  On average, GRMS were in the region of $22-25 per barrel in Q1 for RIL, says Choksey more than double the average of around $10 a barrel the firm had done in the earlier rounds.
• GRM is what a company makes from turning every barrel of crude into fuel. 
• Q1FY23 of tight oil supplies in the marketplace due to the Russia-Ukraine stand-off, refinery shutdowns worldwide, and halt in exports of refined products by China
• Year to date,  the RIL stock has grown 1.41 percent although in the April-June period, it corrected 2.27 percent, say  BSE data.