Brokerages lower Reliance's FY23 earnings estimates after Q1 miss

While Street is bullish on retail, Jio prospects, near-term O2C outlook led to cuts

A net profit miss for the April-June quarter (first quarter, or Q1) of 2022-23 (FY23) of the country’s largest listed company by market capitalisation - Reliance Industries (RIL) - and other headwinds led to a downward revision of the earnings estimates by brokerages for FY23 and 2023-24.

Led by Dayanand Mittal, analysts of JM Financial have cut their FY23 net profit estimates by 4.3 per cent, incorporating slightly lower gross refining margins (GRMs) and normalised tax rates. RIL had highlighted after its results that recession worries could impact the sector, depressing prices and margins.

While there are triggers