Reliance Industries Ltd - Q2 FY14 Result Update - IIFL

- Revenues at Rs1,037bn, higher by 14.9% yoy driven by strong growth in both refining and petrochemical segments aided by weak rupee

- OPM falls by 104bps yoy and 51bps qoq; fall was led by decline in EBIT margins of the refining segment and lower contribution of E&P business

- GRMs were at US$7.7/bbl in line with our expectations, were down qoq on the back of fall in gasoline and fuel oil spreads

- Shale gas revenues and EBIDTA sees first sequential decline

- PAT at Rs54.9bn was tad better than our estimates owing to better than expected operational performance

- We maintain our Market Performer rating and 9-month price target of Rs950 per share.

Source : Equity Bulls

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