RIL - Q4FY13 Result Update - LKP Research

Higher GRM and higher other income drives Q4 profitability

RIL's Q4FY13 net profit of Rs55.9bn was in line with our estimates. GRM for the quarter at $10.1/bbl was in line with our estimate while RIL's premium over Singapore GRM decreased from $3.1 to $1.4/bbl. Petchem EBIT for the quarter declined sequentially by 2.2% to Rs19bn on account of lower polyester margins and lower volumes in PX, PE and Butadiene.

Gas production from KG-D6 declined further to 19.2mmscmd (yoy/qoq -16.6/-5.4mmscmd). Other income increased to Rs22.4bn (31.5% of PBT).

We maintain our NEUTRAL rating on the stock with a revised SOTP price target of Rs853.

Source : Equity Bulls

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