Reliance Industries - Q2FY14 Result Update - LKP Research

Results in line with our expectations

RIL's Q2FY14 net profit of Rs54.9bn was in line with our estimates. However, operating profit of Rs78.5bn was higher than our estimate of Rs74.1bn on account of strong performance by petchem and refining segments. GRM for the quarter at $7.7/bbl was in line with our estimate while RIL's premium over Singapore GRM increased from $1.9 to $2.2/bbl. Petchem EBIT for the quarter increased by 32.6% sequentially to Rs25bn which was 9.2% higher than our estimate on account of higher volumes and improved deltas for key polymers and fibre intermediaries. Gas production from KG-D6 declined further to 14.3mmscmd (yoy/qoq -15/-1.2mmscmd). Other income declined by 2.5% yoy to Rs20.6bn (30% of PBT).

We maintain SOTP based price target of Rs939.

Source : Equity Bulls

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