Reliance Industries (Q4 FY14)

India Infoline News Service | Mumbai |

Q4 FY14, RIL's revenues and EBIDTA from shale gas business were at US$266mn and US$199mn

CMP Rs960, Target Rs1,120, Upside 16.7% 
  • Revenues at Rs952bn, higher by 13.1% yoy driven by strong growth in both refining and petrochemical segments aided by weak rupee

  • OPM falls by 54bps yoy but surges 139bps qoq; yoy fall was led by decline in contribution of E&P business, sequential improvement was owing to sharp improvement EBIT margins of the refining segment

  • GRMs were at US$9.3/bbl was better than our expectations of US$9/bbl, GRMs saw 22.4% sequential jump while being lower by 7.9% yoy

  • Shale gas revenues and EBIDTA continue to rise sequentially

  • PAT at Rs56.3bn was in line with our and street estimates as better than expected operational performance in refining segment was offset by lower other income

  • We maintain our BUY rating with revised 9-month price target of Rs1,120

Result table
(Rs m) Q4 FY14 Q4 FY13 % yoy Q3 FY14 % qoq
Net sales 951,930 841,980 13.1 1,035,210 (8.0)
Material costs (798,590) (696,930) 14.6 (887,030) (10.0)
Purchases (130) (2,220) (94.1) (30) 333.3
Personnel costs (9,480) (7,920) 19.7 (7,150) 32.6
Other overheads (60,420) (56,660) 6.6 (64,780) (6.7)
Operating profit 83,310 78,250 6.5 76,220 9.3
OPM (%) 8.8 9.3 (54) bps 7.4 139 bps
Depreciation (22,750) (22,390) 1.6 (21,430) 6.2
Interest (7,990) (7,090) 12.7 (7,920) 0.9
Other income 20,360 22,430 (9.2) 23,050 (11.7)
PBT 72,930 71,200 2.4 69,920 4.3
Tax (16,620) (15,310) 8.6 (14,810) 12.2
Effective tax rate (%) 22.8 21.5 21.2
Reported PAT 56,310 55,890 0.8 55,110 2.2
PAT margin (%) 5.9 6.6 (72) bps 5.3 59 bps
Ann. EPS (Rs) 69.7 69.2   0.7 68.2   2.1
Source: Company, India Infoline Research

Segmental performance
Revenues (Rs mn) Q4 FY14 Q4 FY13 % yoy Q3 FY14 % qoq
Petrochemical 243,430 221,580 9.9 252,800 (3.7)
Refining 876,240 778,720 12.5 954,320 (8.2)
Oil and gas 14,170 15,970 (11.3) 17,330 (18.2)
EBIT margins (%) Q4 FY14 Q4 FY13 bps yoy Q3 FY14 bps qoq
Petrochemical 8.6 8.6 6 8.4 21
Refining 4.5 4.5 (1) 3.3 122
Oil and gas 26.7 28.8 (213) 31.2 (448)
Revenue contribution (%) Q4 FY14 Q4 FY13 bps yoy Q3 FY14 bps qoq
Petrochemical 21.4 21.7 (33) 20.6 78
Refining 77.0 76.4 66 77.8 (79)
Oil and gas 1.2 1.6 (32) 1.4 (17)
EBIT contribution (%) Q4 FY14 Q4 FY13 bps yoy Q3 FY14 bps qoq
Petrochemical 31.6 32.0 (37) 36.0 (438)
Refining 59.7 59.4 24 53.2 642
Oil and gas 5.7 7.8 (206) 9.2 (345)
Source: Company, India Infoline Research

***Note: This is a NSE Chart

 

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