Reliance Unlikely to Repeat Bumper Quarter

摘要

Reliance Industries stunned the market by reporting 18% growth in net profits in the quarter ending Jun. 30, but analysts say it's doubtful the Indian refiner can sustain this high level of performance due to an expected drop in refining margins ( IOD Jul.18'16 ). The company, which owns the world's largest refining complex at Jamnagar in the western Gujarat state, beat analyst estimates after it posted a net profit of 71 billion rupees ($1.06 billion) in its fiscal first quarter. Earnings were boosted by refining margins of $11.50 per barrel that outperformed benchmark Singapore complex margins by $6.50/bbl -- the highest level achieved in last eight years. Analysts had estimated Reliance's margins would come in at $9.80/bbl. The company's margins in the previous quarter averaged $10.40/bbl.