RIL – Q1FY14 Result Update ::LKP

RIL – Q1FY14 Result Update

Q1 profitability supported by higher other income, petchem disappoints

RIL’s Q4FY13 net profit of Rs53.5bn was in line with our estimates. However operating profit of Rs70.8bn was marginally below our estimate on account of lower than expected performance of the petrochemical segment. GRM for the quarter at $8.4/bbl was in line with our estimate while RIL’s premium over Singapore GRM increased from $1.4 to $1.9/bbl. Petchem EBIT for the quarter declined marginally by 0.4% sequentially to Rs18.9bn which was 5% lower than our estimate on account of lower than expected polymer margins. Gas production from KG-D6 declined further to 15.5mmscmd (yoy/qoq -17.2/-3.7mmscmd). Other income increased to Rs25.4bn (38.1% of PBT). We maintain our NEUTRAL rating on the stock with a revised SOTP price target of Rs939.

Actual v/s Estimates

Y/E, Mar (Rs. m)	Q1FY14	Q4FY13	qoq (%)	Q1FY13	yoy (%)	LKP Estimates	Deviation (%/bps)
Revenue	876,450	841,980	4.1%	918,750	-4.6%	872,853	0.4%
EBITDA	70,750	78,250	-9.6%	67,470	4.9%	72,795	-2.8%
EBITDA (%)	8.1%	9.3%	-122 bps	7.3%	73 bps	8.3%	-27 bps
PAT	53,520	55,890	-4.2%	44,730	19.7%	52,535	1.9%

��

-->