RIL - First Cut - Microsec

Reliance Industries Limited(RIL) announced its Q1'13 as well as its annual results on July 20, 2012.

RIL reported a net sales of INR91875cr which expanded by 7.86% on QoQ basis while its PAT stood at INR4473 cr which is up by 5.59% on QoQ basis. EBITDA margins decline due to decline in oil and gas segment margins as well as less than expected growth in Petchem margins. However RIL beat the general consensus both in terms of topline and bottomline. One of the key reason for RIL to report is because of lower tax rate of 17.70% vs 22.20% than the preceding quarter.

- GRM remains unchanged on QoQ basis at $7.60/bbl.

- RIL management says so far they buy 3.58cr shares worth INR2560cr.

We are of the opinion that RIL is a good bet from long term perspective because of revised gas pricing and its proposition for array of aggressive diversification in the coming years which will boost the company's valuation.

Source : Equity Bulls

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