Reliance Industries (Q4 FY13)

India Infoline News Service | Mumbai |

KG-D6 gas production continued to decline with 47% yoy and 22% qoq fall in Q4 FY13

CMP Rs778, Target Rs930, Upside 19.5% 
  • Revenues at Rs842bn, lower by 1.2% yoy driven by fall in E&P segment revenues owing to continued fall in hydrocarbon production

  • OPM improves by 159bps yoy and 38bps qoq led by surge in EBIT margins of refining segment

  • GRMs were at US$10.1/bbl as compared to our estimates of US$10/bbl led by better product mix and improved crude diet

  • Strong growth seen in shale gas business

  • PAT at Rs56bn was in line with our estimates as under performance of petchem and E&P segment was offset by strong refining performance

  • Upgrade to BUY as we find valuations attractive at P/E of 10.2x on FY15E EPS of Rs75.9 

Result table
(Rs m) Q4 FY13 Q4 FY12 % yoy Q3 FY13 % qoq
Net sales 841,980 851,820 (1.2) 938,860 (10.3)
Material costs (696,930) (728,460) (4.3) (789,400) (11.7)
Purchases (2,220) (2,420) (8.3) (630) 252.4
Personnel costs (7,920) (5,970) 32.7 (8,630) (8.2)
Other overheads (56,660) (49,340) 14.8 (56,470) 0.3
Operating profit 78,250 65,630 19.2 83,730 (6.5)
OPM (%) 9.3 7.7 159 bps 8.9 38 bps
Depreciation (22,390) (26,590) (15.8) (24,570) (8.9)
Interest (7,090) (7,680) (7.7) (8,060) (12.0)
Other income 22,430 22,950 (2.3) 17,400 28.9
PBT 71,200 54,310 31.1 68,500 3.9
Tax (15,310) (11,950) 28.1 (13,480) 13.6
Effective tax rate (%) 21.5 22.0   19.7  
Reported PAT 55,890 42,360 31.9 55,020 1.6
PAT margin (%) 6.6 5.0 167 bps 5.9 78 bps
Ann. EPS (Rs) 69.2 51.8 33.7 68.2 1.5
Source: Company, India Infoline Research

Segmental performance
Revenues (Rs mn) Q4 FY13 Q4 FY12 % yoy Q3 FY13 % qoq
Petrochemical 221,580 214,120 3.5 220,530 0.5
Refining 778,720 762,110 2.2 866,410 (10.1)
Oil and gas 15,970 26,090 (38.8) 19,210 (16.9)
EBIT margins (%) Q4 FY13 Q4 FY12 bps yoy Q3 FY13 bps qoq
Petrochemical 8.6 10.2 (160) 8.8 (23)
Refining 4.5 2.2 229 4.2 35
Oil and gas 28.8 36.5 (765) 30.7 (191)
Revenue contribution (%) Q4 FY13 Q4 FY12 bps yoy Q3 FY13 bps qoq
Petrochemical 21.7 21.3 42 19.9 182
Refining 76.4 75.8 52 78.2 (185)
Oil and gas 1.6 2.6 (103) 1.7 (17)
EBIT contribution (%) Q4 FY13 Q4 FY12 bps yoy Q3 FY13 bps qoq
Petrochemical 32.0 45.0 (1,304) 31.1 85
Refining 59.4 35.1 2,430
BSE 915.05 [0.85] ([0.09]%)
NSE 915.60 [0.55] ([0.06]%)

***Note: This is a NSE Chart

 

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