Reliance Industries - March 2013 Results Preview - Motilal Oswal

- We estimate RIL to report 4QFY13E GRM at USD10/bbl v/s USD9.6/bbl in 3QFY13. Singapore GRM increased 36% QoQ due to strong auto fuel cracks. We also expect some recovery in petchem profits.

- We expect average 4QFY13E KG-D6 volume of 20mmscmd v/s 24mmscmd in 3QFY13.

- We estimate the company to report PAT of INR54.7b (v/s INR42.4b in 4QFY12 and INR55b in 3QFY13).

- RIL trades at 11x FY15E adjusted EPS of INR78.7. Its new refining/petchem projects are likely to add to earnings from end-FY15E/FY16E, but medium term outlook on core business remains weak, with RoE reaching sub-13%; maintain Neutral.

Source : Equity Bulls

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