Reliance Industries (Q3 FY13)

India Infoline News Service | Mumbai |

RIL has planned substantial investments across the petrochemicals chain which includes a pet-coke gas cracker that will enhance margins for the company.

CMP Rs898, Target Rs937, Upside 4.3%
  • Revenues at Rs938bn, higher by 10.3% yoy driven by robust growth in both refining and petrochemical segments
  • OPM rises by 36bps yoy and 31bps qoq led by surge in EBIT margins of refining segment
  • GRMs were at US$9.6/bbl as compared to our estimates of US$8.5/bbl led by better product mix and improved crude diet
  • Strong growth seen in shale gas business
  • PAT at Rs55bn was substantially ahead of our estimates on back of strong operational performance
  • Maintain Market Performer rating with a revised 9-month price target of Rs937; key risks remain: increasing regulatory risks in E&P segment, weakness in GRMs, falling petrochemical spreads 

Result table

(Rs m) Q3 FY13 Q3 FY12 % yoy Q2 FY13 % qoq
Net sales 938,860 851,350 10.3 903,360 3.9
Material costs (789,400) (727,010) 8.6 (759,060) 4.0
Purchases (630) (1,120) (43.8) (540) 16.7
Personnel costs (8,630) (6,720) 28.4 (8,480) 1.8
Other overheads (56,470) (43,650) 29.4 (57,510) (1.8)
Operating profit 83,730 72,850 14.9 77,770 7.7
OPM (%) 8.9 8.6 36 bps 8.6 31 bps
Depreciation (24,570) (25,700) (4.4) (23,060) 6.5
Interest (8,060) (6,940) 16.1 (7,370) 9.4
Other income 17,400 17,170 1.3 21,120 (17.6)
PBT 68,500 57,380 19.4 68,460 0.1
Tax (13,480) (12,980) 3.9 (14,370) (6.2)
Effective tax rate (%) 19.7 22.6   21.0  
PAT 55,020 44,400 23.9 54,090 1.7
PAT margin (%) 5.9 5.2 65 bps 6.0 (13) bps
Ann. EPS (Rs) 68.2 54.2 25.7 66.9 2.0
Source: Company, India Infoline Research

Segmental performance
Revenues (Rs mn) Q3 FY13 Q3 FY12 % yoy Q2 FY13 % qoq
Petrochemical 220,530 197,810 11.5 220,580 (0.0)
Refining 866,410 767,380 12.9 838,780 3.3
Oil and gas 19,210 28,320 (32.2) 22,540 (14.8)
EBIT margins (%) Q3 FY13 Q3 FY12 bps yoy Q2 FY13 bps qoq
Petrochemical 8.8 10.9 (212) 7.9 90
Refining 4.2 2.2 198 4.2 (3)
Oil and gas 30.7 45.7 (1,498) 38.4 (771)
EBIT contribution (%) Q3 FY13 Q3 FY12 bps yoy Q2 FY13 bps qoq
Petrochemical 31.1 41.9 (1,078) 28.1 308
Refining 58.1 32.8 2,538 56.8 131
Oil and gas 9.5 25.2 (1,566) 14.0 (448)
Revenue contribution (%) Q3 FY13 Q3 FY12 bps yoy Q2 FY13 bps qoq
Petrochemical 19.9 19.9 4 20.4 (45)
Refining 78.2 77.1 112 77.4 79
Oil and gas

***Note: This is a NSE Chart

 

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