RIL - Q4FY13 Result Update_LKP

RIL - Q4FY13 Result Update

Higher GRM and higher other income drives Q4 profitability

RIL’s Q4FY13 net profit of Rs55.9bn was in line with our estimates. GRM for the quarter at $10.1/bbl was in line with our estimate while RIL’s premium over Singapore GRM decreased from $3.1 to $1.4/bbl. Petchem EBIT for the quarter declined sequentially by 2.2% to Rs19bn on account of lower polyester margins and lower volumes in PX, PE and Butadiene. Gas production from KG-D6 declined further to 19.2mmscmd (yoy/qoq -16.6/-5.4mmscmd). Other income increased to Rs22.4bn (31.5% of PBT). We maintain our NEUTRAL rating on the stock with a revised SOTP price target of Rs853.

Actual v/s Estimates

Y/E, Mar (Rs. m)	Q4FY13	Q3FY13	qoq (%)	Q4FY12	yoy (%)	LKP Estimates	Deviation (%/bps)
Revenue	841,980	938,860	-10.3%	851,820	-1.2%	888,779	-5.3%
EBITDA	78,250	83,730	-6.5%	65,630	19.2%	83,228	-6.0%
EBITDA (%)	9.3%	8.9%	38 bps	7.7%	159 bps	9.4%	-7 bps
PAT	55,890	55,020	1.6%	42,360	31.9%	54,878	1.8%

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