Reliance Industries - 3QFY2014 result - Angel Broking

Views of Mr. Bhavesh Chauhan (Sr. Research Analyst - Oil & Gas, Angel Broking) on Hindustan Zinc 3QFY2014 result:

RIL's net profit in line with our estimates

"Reliance Industries' (RIL) 3QFY2014 net profit came in line with our estimate. Its net sales increased 10.3% yoy to Rs. 103,521cr (below our estimate of Rs. 117,488cr) due to increase in Refining segment sales (+14.6% yoy) and Petrochemical segment sales (+10.1% yoy). Gross refining margins (GRMs) were in line with our estimate of US$7.5/bbl and stood at US$7.6/bbl in 3QFY2014 (US$7.7/bbl in 2QFY2014 and US$9.6/bbl in 3QFY2013). RIL's EBITDA decreased by 9.0% yoy to Rs. 7,622cr on account of decline in profit from Refining segment (EBIT down 13.1% yoy to Rs. 3,141cr) and Oil & Gas segment (EBIT down by 8.5% yoy to Rs. 540cr), partially offset by increase in profits from Petrochemical segment (EBIT up by 9.7% yoy to Rs. 2,124cr). Other income rose by 32.5% yoy to Rs. 2,305cr; hence, net profit was flat yoy to Rs. 5,511cr (in line our estimate of Rs. 5,508cr). We maintain our Buy rating on the stock while we keep our target price under review."

Source : Equity Bulls

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