Dear All,
Forwarding you the Result Flash for 4QFY2011 on Reliance Industries with a Buy Recommendation and a Target Price of Rs1,189 (12 months).
| Y/E March (` cr) | 4QFY2011 | 4QFY2010 | % chg (yoy) | Angel Estimates | Variation (%) |
| Net Operating Income | 72,674 | 57,570 | 5.2 | 77,162 | -5.8 |
| EBITDA | 9,843 | 9,154 | 21.7 | 10,599 | -7.1 |
| EBITDA Margin (%) | 13.5 | 15.9 | 15.7 | 13.7 | -0.2 |
| Adj. PAT | 5,376 | 4,710 | 28.1 | 5,659 | -5.0 |
RIL reported 14.1% yoy growth in bottom-line to `5,376cr (`4,710cr) backed by better performance by Refining and Petrochemical segment. However, on a sequential basis, PAT grew by 4.7%, which was below our expectation on account of lower-than-expected refining margins. RIL’s top-line during the quarter increased by 26.2% yoy to `72,674cr (`57,570cr) primarily on the back of 22.3% yoy growth in refining revenues to `62,704cr (`51,250cr) and 17.8% yoy increase in the petchem segment's revenue to `18,194cr (`15,448cr). Growth in the refining segment was due to higher crude price. Crude oil processed during the quarter was flat yoy at 16.7mn tonnes. RIL GRMs were higher sequentially at US $9.2/bbl (US $9/bbl), lower than our expectation of US $10/bbl. Benchmark complex Singapore margins during the quarter stood at US $7.4/bbl. Thus, RIL managed to earn a spread of US $1.8/bbl. On the petchem side, this was the best ever quarter for the company in EBIT terms. Petrochemical EBIT margins during the quarter stood lower qoq at 14.4% (15.2%) due to base effect of higher revenues. Thus, OPMs on a qoq basis contracted by 242bp to 13.5% (16%). On a yoy basis as well, OPMs contracted by 233bp yoy to 13.5% (15.9%) on account of dip in production of natural gas at KG basin. Other income and Interest expenditure during the quarter increased by 49.1% and 32.6% yoy to `917cr and `696cr, whereas depreciation was flat yoy at `3,387cr. Thus, PAT increased by 14.1% yoy to `5,376cr (`4,710cr).
4QFY2011 Performance (Standalone)
| Y/E March (Rs cr) | 4QFY2011 | 3QFY2011 | % chg (qoq) | 4QFY2010 | % chg (yoy) | FY2011 | FY2010 | % chg (yoy) |
| Net Operating Income | 72,674 | 59,789 | 21.6 | 57,570 | 26.2 | 248,170 | 192,461 | 28.9 |
| COGS | 57,533 | 45,008 | 27.8 | 43,304 | 32.9 | 189,991 | 143,971 | 32.0 |
| Total operating expenditure | 62,831 | 50,244 | 25.1 | 48,434 | 29.7 | 210,044 | 161,880 | 29.8 |
| EBITDA | 9,843 | 9,545 | 3.1 | 9,136 | 7.7 | 38,126 | 30,581 | 24.7 |
| EBITDA Margin (%) | 13.5 | 16.0 | 15.9 | 15.4 | 15.9 | |||
| Other Income | 917 | 741 | 23.8 | 615 | 49.1 | 3,052 | 2,460 | 24.1 |
| Depreciation | 3,387 | 3,359 | 0.8 | 3,392 | (0.1) | 13,608 | 10,497 | 29.6 |
| Interest | 696 | 549 | 26.8 |
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