Mukesh Ambani led Reliance Industries (RIL) reported a marginal increase of 0.75% in net profit for fourth quarter of financial year 2014 to Rs 56.31 billion. Prabhudas Lilladher had expected profit of Rs 56.5 billion.
Net sales for the quarter went up 13.06% Rs 951.93 billion for the quarter ended Mar. 31, 2014 over prior year period. Angel Broking had expected revenues of Rs 1,007.26 billion.
Other income climbed 9.23% to Rs 20.36 billion for the quarter ended Mar. 31, 2014 as compared to Rs 22.43 billion in the same period last year.
Reliance reported gross refining margin (GRM) of USD 9.3 a barrel during fourth quarter.
Commenting on the results, Nitin Tiwari, Religare Institional Research, said, ''In line with our estimates, RIL's Q4FY14 PAT was flat QoQ/YoY at Rs 56.3 billion as stronger GRMs at USD 9.3/bbl offset lower other income of Rs 20.4 billion (-12% QoQ). RIL has successfully commissioned a 400ktpa PFY plant at Silvassa and is expected to commission 9mmtpa of polymer and polyester capacities as part of its USD 12 billion capex program over FY15-FY16. We expect these expansion projects to support 11% earnings CAGR over FY14-FY16. We maintain HOLD with a Mar'15 TP of Rs 950."
Dhaval Joshi, research analyst, Emkay Global Financial Services, said, ''Results came in-line, with net profit at Rs 56.3 billion, up 2.2% qoq, while EBIDTA at Rs 83.3 billion, grew by 9.3% on qoq, on better refining performance. With expected improvement in RIL’s business profile in the next 2 years, potential upsides from positive developments in E&P and attractive valuations, we maintain Accumulate, with a target price of Rs 982.
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