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Reliance India Ltd Results

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					                                                                                              4QFY2012 Result Update | Oil & Gas
                                                                                                                            April 20, 2012



 Reliance Industries                                                                            BUY
                                                                                                CMP                                        `731
 Performance Highlights                                                                         Target Price                               `872
  Y/E March (` cr)            4QFY12        4QFY11     % chg (yoy)   3QFY12     % chg (qoq)     Investment Period                 12 Months
  Net operating income         85,182        72,674          17.2     85,135           0.1
  EBITDA                        6,563         9,843         (33.3)     7,285          (9.9)    Stock Info
  EBITDA margin (%)                 7.7        13.5       (584)bp        8.6        (85)bp     Sector                                 Oil & Gas
  PAT                           4,236         5,376         (21.2)     4,440          (4.6)    Market Cap (` cr)                          252,460
  Source: Company, Angel Research                                                              Beta                                           1.1
                                                                                               52 Week High / Low                   1,066/689
 For 4QFY2012, Reliance Industries (RIL) reported 17.2% yoy growth in its top line.
                                                                                               Avg. Daily Volume                          775420
 However, EBITDA and PAT declined by 33.3% yoy and 21.2% yoy, respectively, due
                                                                                               Face Value (`)                                 10
 to a decline in KG-D6 gas production and lower gross refining margins (GRMs).
                                                                                               BSE Sensex                                  16,752
 Lower gas production leads to a decline in bottom line: RIL’s net sales increased             Nifty                                        5,046
 by 17.2% yoy to `85,182cr, in-line with our estimate of `84,669cr. However,                   Reuters Code                               RELI.BO
 EBITDA decreased by 33.3% yoy to `6,563cr on account of lower profits from all
                                                                                               Bloomberg Code                              RIL@IN
 its three main segments. GRM stood at US$7.6/bbl in 4QFY2012 compared to
 US$9.2/bbl in 4QFY2011 and US$6.8/bbl in 3QFY2012. Production from
 KG-D6 stood at 35mmscmd in 4QFY2012 compared to 41mmscmd in                                   Shareholding Pattern (%)
 3QFY2012 and 51mmscmd in 4QFY2011. Other income increased by 150.3%                           Promoters                                     44.7
 yoy to `2,295cr and depreciation expenses decreased by 21.5% yoy to `2,659cr.                 MF / Banks / Indian Fls                       11.4
 Hence, despite the 33.3% decline in EBITDA, PAT decreased by only 21.2% yoy to                FII / NRIs / OCBs                             17.0
 `4,236cr (slightly above our estimate of `4,177cr).                                           Indian Public / Others                        26.9
 RIL to set up a petcoke gasification plant: During 4QFY2012, RIL finalized its plan
 to set up a petcoke gasification plant for a capex of US$4bn. The company also
                                                                                               Abs. (%)                   3m       1yr        3yr
 downgraded its KG-D6 reserves by 12-15% due to reservoir complexity.
                                                                                               Sensex                     3.8    (10.8)      58.2
 Outlook and valuation: RIL’s refining and petrochemical segments’ profits                     RIL                       (5.4)   (18.2)      36.1
 declined during 4QFY2012. Going forward, although there are some concerns
 on the KG basin gas output, we believe RIL along with BP will optimize its
 producing blocks in KG-D6. Moreover, the stock is currently trading at a PE of
 11.1x FY2013E and 10.4x FY2014E, compared to its past five-year trading
 average of 17.0x forward PE. Thus, we maintain our Buy recommendation on RIL
 with an SOTP target price of `872.

 Key financials (Consolidated)
 Y/E March (` cr)                     FY2011          FY2012E        FY2013E      FY2014E
 Net sales                           248,170          329,904        325,734      328,669
 % chg                                      21.8         32.9           (1.3)          0.9
 Net profit                               20,286       20,040         21,520       22,926
 % chg                                       7.8         (1.2)           7.4           6.5
 EPS (`)                                    62.0         61.2           65.8          70.0
 EBITDA margin (%)                          15.4         10.2           10.9          11.6
 P/E (x)                                    11.8         11.9           11.1          10.4
 RoE (%)                                    13.7         12.3           11.9          11.5
 RoCE (%)                                   10.5           8.8           9.1           9.2
 P/BV (x)                                    1.4           1.3           1.1           1.0
                                                                                               Bhavesh Chauhan
 EV/ Sales (x)                               1.0           0.7           0.7           0.7     Tel: 022- 39357800 Ext: 6821
 EV/ EBITDA (x)                              6.7           6.8           6.5           5.6     bhaveshu.chauhan@angelbroking.com
 Source: Company, Angel Research

Please refer to important disclosures at the end of this report                                                                                 1
                                                     Reliance Industries | 4QFY2012 Result Update



                 Exhibit 1: 4QFY2012 performance (Standalone)
                 Y/E March (` cr)         4QFY2012         4QFY2011    % chg (yoy)   3QFY2012 % chg (qoq)
                 Net operating income         85,182         72,674          17.2       85,135        0.1
                 COGS                         71,519         58,259          22.8       74,190       (3.6)
                 Total operating exp.         78,619         62,831          25.1       77,850        1.0
                 EBITDA                        6,563          9,843         (33.3)       7,285       (9.9)
                 EBITDA margin (%)                  7.7        13.5                        8.6
                 Other income                  2,295            917         150.3        1,717       33.7
                 Depreciation                  2,659          3,387         (21.5)       2,570        3.5
                 Interest                          768          696          10.3         694        10.7
                 Extraordinary items                  -           -                          -
                 PBT                           5,431          6,677         (18.7)       5,738       (5.4)
                 PBT margin (%)                     6.4         9.2                        6.7
                 Total tax                     1,195          1,301          (8.1)       1,298       (7.9)
                 % of PBT                          22.0        19.5                       22.6
                 PAT                           4,236          5,376         (21.2)       4,440       (4.6)
                 Exceptional items                                -
                 Adj. PAT                      4,236          5,376         (21.2)       4,440       (4.6)
                 PAT margin (%)                     5.0         7.4                        5.2
                 Source: Company, Angel Research



                 Exhibit 2: Segmental break-up (Standalone)
                 Y/E March (` cr)          4QFY2012 4QFY2011 % chg (yoy) 3QFY2012 % chg (qoq)
                 Revenue
                 Petrochemicals               21,412          18,194         17.7      19,781         8.2
                 Refining and marketing       76,211          62,704         21.5      76,738        (0.7)
                 Oil and gas                       2,609       4,104        (36.4)      2,832        (7.9)
                 Others                             260         173          50.3         208        25.0
                 Gross revenue               100,492          85,175         18.0      99,559         0.9


                 EBIT
                 Petrochemicals                    2,174       2,626        (17.2)      2,157         0.8
                 Refining and marketing            1,696       2,509        (32.4)      1,685         0.7
                 Oil and gas                        951        1,569        (39.4)      1,294       (26.5)
                 Others                               9           7          28.6           9         0.0
                 Total EBIT                        4,830       6,711        (28.0)      5,145        (6.1)


                 EBIT margin (%)
                 Petrochemicals                     10.2        14.4             -        10.9           -
                 Refining and marketing              2.2         4.0             -         2.2           -
                 Oil and gas                        36.5        38.2             -        45.7           -
                 Others                              3.5         4.0             -         4.3           -
                 Total                               4.8         7.9             -         5.2           -
                 Source: Company, Angel Research




April 20, 2012                                                                                          2
                                                   Reliance Industries | 4QFY2012 Result Update



                 Exhibit 3: 4QFY2012 actual vs. estimates
                 (` cr)                                    Estimates        Actual      Variation (%)
                 Net sales                                   84,669        85,182                0.6
                 EBITDA                                       6,819         6,563               (3.7)
                 EBITDA margin (%)                              8.1            7.7               0.3
                 PBT                                          5,375         5,431                1.0
                 Adj. PAT                                     4,177         4,236                1.4
                 Source: Company, Angel Research

                 Petrochemicals and refining segments drive RIL’s top-line growth

                 RIL’s 4QFY2012 results were broadly in-line with our estimates. The company’s net
                 sales increased by 17.2% yoy to `85,182cr, in-line with our estimate of `84,669cr.
                 Net sales growth was mainly driven by the petrochemicals segment (+17.7% yoy
                 to `21,412cr) and refining segment (+21.5% yoy to `76,211cr).

                 During 4QFY2012, RIL finalized its plan to set up a petcoke gasification plant for a
                 capex of US$4bn. The company also downgraded its KG-D6 reserves by 12-15%
                 due to reservoir complexity.




April 20, 2012                                                                                      3
                                                       Reliance Industries | 4QFY2012 Result Update



                 Exhibit 4: Sales growth trend

                            88,000                                                    42.4           45.0
                            85,000                                39.1                               40.0
                            82,000                                            36.7
                                                                                                     35.0
                            79,000
                            76,000                                                                   30.0




                  (` cr)
                                                         26.2
                            73,000        22.7                                                       25.0




                                                                                                            (%)
                            70,000                                                            17.2   20.0
                            67,000                                                                   15.0
                            64,000
                                                                                                     10.0
                            61,000
                                                 5.2                                                 5.0
                            58,000
                            55,000                                                                   -
                                      2QFY11 3QFY11 4QFY11 1QFY12 2QFY12 3QFY12 4QFY12
                                                 Net sales        Net sales growth (RHS)

                 Source: Company, Angel Research



                 Exhibit 5: KG-DG production continued to slide in 4QFY2012

                            70
                                     59    58
                            60                     56
                                                             51
                                                                         49
                            50                                                   45
                                                                                             41
                 (mmscmd)




                            40                                                                       35

                            30

                            20

                            10

                            0
                                 1QFY11 2QFY11 3QFY11 4QFY11 1QFY12 2QFY12 3QFY12 4QFY12
                                                     KG D6 gas production

                 Source: Company, Angel Research



                 EBITDA declines by 33.3% yoy

                 RIL’s EBITDA decreased by 33.3% yoy to `6,563cr on account of lower profits from
                 all its three main segments. The refining segment's EBIT decreased by 32.4% yoy to
                 `1,696cr, the petrochemical segment's EBIT decreased by 17.2% yoy to `2,174cr
                 and the oil and gas segment's EBIT decreased by 39.4% yoy to `951cr during the
                 quarter. GRM stood at US$7.6/bbl in 4QFY2012 compared to US$9.2/bbl in
                 4QFY2011 and US$6.8/bbl in 3QFY2012. Production from KG-D6 stood at
                 35mmscmd in 4QFY2012 compared to 41mmscmd in 3QFY2012 and
                 51mmscmd in 4QFY2011.




April 20, 2012                                                                                               4
                                                                                                                   Reliance Industries | 4QFY2012 Result Update



Exhibit 6: EBIT break-up                                                                      Exhibit 7: Operating performance trend
 100%                                                                                               12,000                                                                        18.0
                                                                                                                       16.3    16.0
  80%                                                                                               10,000                                                                        16.0

                                                                                                        8,000                                                                     14.0




                                                                                               (` cr)
  60%                                                                                                                                                      12.5
                                                                                                                                          13.5




                                                                                                                                                                                         (%)
                                                                                                        6,000                                                                     12.0
  40%
                                                                                                        4,000                                                                     10.0
                                                                                                                                                                   8.6
  20%                                                                                                                                                                     7.7
                                                                                                        2,000                                                                     8.0
                                                                                                                                                 7.7
   0%                                                                                                      -                                                                      6.0
        2QFY11      3QFY11        4QFY11       1QFY12     2QFY12    3QFY12          4QFY12                       2QFY11 3QFY11 4QFY11 1QFY12 2QFY12 3QFY12 4QFY12
                 Petrochemicals     Refining       Oil and gas     Others                                              Operating Profit                Operating Margins (RHS)


Source: Company, Angel Research                                                                Source: Company, Angel Research



                                                                   Other income growth mutes the decline in PAT

                                                                   During the quarter, the company’s other income increased by 150.3% yoy to
                                                                   `2,295cr due to higher treasury income. Depreciation and depletion expenses
                                                                   decreased by 21.5% yoy to `2,659cr due to lower depletion charges. Hence,
                                                                   despite the 33.3% decline in EBITDA, the company’s PAT decreased by only 21.2%
                                                                   yoy to `4,236cr (slightly above our estimate of `4,177cr).


                                                                   Exhibit 8: PAT growth trend

                                                                             6,000                                                                                                40.0

                                                                             5,000           27.8                                                                                 30.0
                                                                                                                28.1
                                                                                                                                                 15.8                             20.0
                                                                                                                                      16.7
                                                                             4,000
                                                                                                                             14.1




                                                                                                                                                                                         (%)
                                                                                                                                                                                  10.0
                                                                             3,000
                                                                    (` cr)




                                                                                                                                                                                  0.0
                                                                             2,000
                                                                                                                                                             (13.6)               (10.0)
                                                                             1,000                                                                                       (21.2)
                                                                                                                                                                                  (20.0)

                                                                                -                                                                                                 (30.0)
                                                                                       2QFY11 3QFY11 4QFY11 1QFY12 2QFY12 3QFY12 4QFY12
                                                                                                                       PAT          PAT growth (RHS)

                                                                   Source: Company, Angel Research




April 20, 2012                                                                                                                                                                             5
                                                                               Reliance Industries | 4QFY2012 Result Update



                 Segment-wise performance

                 Refining: During the quarter, crude processing stood at 16.3mn tonnes (compared
                 to 16.7mn tonnes in 4QFY2011), with its refinery reporting capacity utilization of
                 109%. Despite the decline in crude throughput, higher petroleum product prices
                 led to a 21.5% yoy increase in the refining segment’s revenue to `76,211cr.

                 However, GRM decreased to US$7.6/bbl in 4QFY2012 compared to US$9.2/bbl
                 in 4QFY2011 (US$6.8/bbl in 3QFY2012) on account of lower product cracks.
                 Thus, the refining segment’s EBIT decreased by 32.4% yoy to `1,696cr.

                 Exhibit 9: RIL’s GRM vs. Benchmark Singapore GRM
                               12.0

                               10.0

                                8.0

                                6.0
                  (US $/bbl)




                                4.0

                                2.0

                                 -
                                      3QFY09

                                               4QFY09

                                                         1QFY10

                                                                     2QFY10

                                                                                3QFY10

                                                                                            4QFY10

                                                                                                         1QFY11

                                                                                                                      2QFY11

                                                                                                                                    3QFY11

                                                                                                                                                      4QFY11

                                                                                                                                                                        1QFY12

                                                                                                                                                                                          2QFY12

                                                                                                                                                                                                        3QFY12

                                                                                                                                                                                                                   4QFY12
                                                                                 RIL GRMs                                  Singapore GRMs

                 Source: Company, Angel Research


                 Exhibit 10: Capacity utilization trend
                      120.0
                                                                                                                                                                                                                 17.0
                      100.0
                                                                                                                                                                                                                 15.0




                                                                                                                                                                                                                       (mn tonnes)
                           80.0
                                                                                                                                                                                                                 13.0
                 (%)




                           60.0
                                                                                                                                                                                                                 11.0

                           40.0                                                                                                                                                                                  9.0

                           20.0                                                                                                                                                                                  7.0
                                      4QFY09

                                               1QFY10

                                                        2QFY10

                                                                   3QFY10

                                                                              4QFY10

                                                                                         1QFY11

                                                                                                     2QFY11

                                                                                                                  3QFY11

                                                                                                                               4QFY11

                                                                                                                                             1QFY12

                                                                                                                                                               2QFY12

                                                                                                                                                                                 3QFY12

                                                                                                                                                                                               4QFY12




                                                                  Capacity Utilisation                                     Crude Processing (RHS)


                 Source: Company, Angel Research


                 Petrochemicals: During 4QFY2012, the petrochemicals segment’s revenue grew by
                 17.7% yoy to `21,412cr due to higher prices and sales volumes. However, the
                 segment’s EBIT margin declined by 428bp yoy to 10.2% and EBIT declined by
                 17.2% yoy to `2,174cr.




April 20, 2012                                                                                                                                                                                                              6
                                                 Reliance Industries | 4QFY2012 Result Update




                 Oil and gas: The oil and gas segment’s revenue decreased by 36.4% yoy to
                 `2,609cr due to lower production from KG-D6 block; however, this was partially
                 offset by the increase in crude oil realization. Production from KG-D6 stood at
                 35mmscmd in 4QFY2012 compared to 51mmscmd in 4QFY2011. Consequently,
                 the segment’s EBIT decreased by 39.4% yoy to `951cr during the quarter.


                 Investment arguments

                 Ramp-up in KG-D6 could re-rate the stock: RIL’s upstream segment still has
                 significant upside in store, considering the huge untapped resources. RIL’s natural
                 gas production stood at 35mmscmd in 4QFY2012, significantly below its potential
                 of 80mmscmd from KG-D6 due to constraints over reservoir pressure.
                 Nevertheless, we believe RIL can ramp up its production over the medium term
                 with the help of BP’s technical expertise.

                 Foray into newer businesses: RIL has been eyeing inorganic routes for
                 diversifying its asset portfolio by entering into newer ventures, such as retail and
                 telecom, on the back of significant cash pile (`72,252cr as on March 31, 2012)
                 and treasury stocks. Initiatives such as shale gas acquisitions, with in-place reserves
                 of over 10TCF, could prove to be a potential trigger for the stock in the long term.




April 20, 2012                                                                                        7
                                                    Reliance Industries | 4QFY2012 Result Update



                 Outlook and valuation

                 RIL’s refining and petrochemical segments’ profits declined during 4QFY2012.
                 Further, there are concerns on the KG basin gas output. Nevertheless,
                 we believe RIL along with BP will optimize its producing blocks in KG-D6 over the
                 medium term. Further, expansion plans to set up a petcoke gasification plant and
                 a petchem capacity address concerns on the utilization of RIL’s huge cash reserves.

                 Over the past five years, RIL has traded at an average one-year forward PE of
                 17.0x, while currently it is trading at a PE of 11.1x FY2012E and 10.4x FY2013E.
                 On a P/B basis, the stock trades at 1.1x FY2012E and 1.0x FY2013E.
                 Thus, we maintain our Buy view on RIL with an SOTP target price of `872.


                 Exhibit 11: SOTP valuation (FY2014E)
                 Business segment (` cr)                                                   `/share
                 Refining (EV/EBITDA 5.5x)                                                     268
                 Petrochemical (EV/EBITDA 5.5x)                                                187
                 KG-D6 gas (DCF)                                                               142
                 KG-MA oil (DCF)                                                                45
                 NEC-25 (EV/boe 4.5x)                                                           54
                 D3 (EV/boe 4.5x)                                                               60
                 D9 (EV/boe 4.5x)                                                               35
                 Shale gas ventures (EV/boe 3.0x)                                               60
                 Other prospective basins                                                       30
                 Retail                                                                         15
                 Investment/Others                                                              36
                 Total EV                                                                      931
                 Net debt                                                                      (59)
                 Equity value (`)                                                              872
                 Source: Company, Angel Research



                 Exhibit 12: Angel EPS forecast vs. consensus
                                      Angel forecast          Bloomberg consensus      Variation (%)
                 FY2013E                           65.8                      66.9              (1.7)
                 FY2014E                           70.0                      71.0              (1.4)
                 Source: Company, Angel Research




April 20, 2012                                                                                     8
                                                                                                                                                       Reliance Industries | 4QFY2012 Result Update



Exhibit 13: Recommendation summary
Company      CMP          TP    Reco.     Mcap Upside                             P/E (x)                                           P/BV (x)                              EV/EBITDA (x)                                             RoE (%)                                    RoCE (%)
               (`)        (`)              (` cr)   (%)                  FY13E                  FY14E FY13E FY14E                                                        FY13E                  FY14E                      FY13E FY14E FY13E                                                   FY14E
RIL          731         872    Buy     252,460     19                       11.1                   10.4                       1.1                 1.0                            6.5                   5.6                     11.9                 11.5                      9.1                  9.2
ONGC         266         319    Buy     227,704     20                        8.6                       7.9                    1.5                 1.4                            3.4                   2.9                     18.8                 18.1                17.9                    17.9
Cairn India 346          372 Accum.      66,151      8                        6.8                       7.1                    1.1                 1.0                            4.3                   3.4                     18.3                 14.8                18.3                    14.8
GAIL         361         392 Accum.      45,766      9                       10.2                       9.7                    1.8                 1.6                            5.2                   4.3                     18.7                 17.0                22.9                    21.0
Source: Angel Research


                                                    Exhibit 14: One-year forward P/E
                                                                        1,600
                                                                        1,400
                                                                        1,200
                                                                        1,000
                                                     Share price (` )




                                                                         800
                                                                         600
                                                                         400
                                                                         200
                                                                              0
                                                                                               Oct-06




                                                                                                                                     Oct-07




                                                                                                                                                                         Oct-08




                                                                                                                                                                                                             Oct-09




                                                                                                                                                                                                                                                  Oct-10




                                                                                                                                                                                                                                                                                      Oct-11
                                                                                                        Jan-07




                                                                                                                                              Jan-08




                                                                                                                                                                                  Jan-09




                                                                                                                                                                                                                      Jan-10




                                                                                                                                                                                                                                                           Jan-11




                                                                                                                                                                                                                                                                                               Jan-12
                                                                                      Jul-06



                                                                                                                  Apr-07
                                                                                                                            Jul-07



                                                                                                                                                       Apr-08
                                                                                                                                                                Jul-08



                                                                                                                                                                                           Apr-09
                                                                                                                                                                                                    Jul-09



                                                                                                                                                                                                                               Apr-10
                                                                                                                                                                                                                                        Jul-10



                                                                                                                                                                                                                                                                    Apr-11
                                                                                                                                                                                                                                                                             Jul-11



                                                                                                                                                                                                                                                                                                        Apr-12
                                                                                                                               7x                         10x                          13x                            16x                           19x

                                                     Source: Company, Angel Research



                                                    Exhibit 15: Premium/Discount in RIL (P/E) vs. Sensex (P/E)

                                                                        60

                                                                        50

                                                                        40

                                                                        30

                                                                        20
                                                     (%)




                                                                        10

                                                                         0
                                                                                                         Dec-07




                                                                                                                                                       Dec-08




                                                                                                                                                                                               Dec-09




                                                                                                                                                                                                                                         Dec-10




                                                                                                                                                                                                                                                                                      Dec-11
                                                                             Apr-07

                                                                                           Aug-07



                                                                                                                           Apr-08

                                                                                                                                       Aug-08



                                                                                                                                                                   Apr-09

                                                                                                                                                                                  Aug-09



                                                                                                                                                                                                             Apr-10

                                                                                                                                                                                                                           Aug-10



                                                                                                                                                                                                                                                       Apr-11

                                                                                                                                                                                                                                                                      Aug-11



                                                                                                                                                                                                                                                                                                  Apr-12




                                                                  (10)

                                                                  (20)

                                                                  (30)                                                          Prem/Disc to Sensex                                                          Historic average disc.

                                                     Source: Company, Angel Research




April 20, 2012                                                                                                                                                                                                                                                                                             9
                                                 Reliance Industries | 4QFY2012 Result Update



                 Profit and loss (Consolidated)
                 Y/E March (` cr)               FY2009    FY2010   FY2011    FY2012 FY2013E FY2014E
                 Total operating income        151,224 203,740 248,170 329,904 325,734 328,669
                 % chg                            10.3      34.7     21.8      32.9      (1.3)      0.9
                 Total Expenditure             127,802 172,846 210,044 296,285 290,276 290,388
                 Net Raw Materials             105,224 147,065 189,991 273,942 268,386 268,490
                 Purchases of finished goods     7,202     7,538     144      1,441     1,412     1,412
                 Personnel                       3,018     2,791    2,624     2,862     2,804     2,805
                 Other                          12,358    15,452   15,965    18,040    17,674    17,681
                 EBITDA                         23,422    30,894   38,126    33,619    35,458    38,281
                 % chg                             1.2      31.9     23.4     (11.8)      5.5       8.0
                 (% of Net Sales)                 15.5      15.2     15.4      10.2      10.9      11.6
                 Depreciation and amort.         5,651    10,946   13,608    11,394    11,657    12,983
                 EBIT                           17,771    19,948   24,518    22,225    23,801    25,298
                 % chg                            (2.0)     12.2     22.9      (9.4)      7.1       6.3
                 (% of Net Sales)                 11.8       9.8      9.9       6.7       7.3       7.7
                 Interest & other Charges        1,816     2,060    2,328     2,667     2,350     1,736
                 Other Income                    1,914     2,185    3,052     6,192     6,811     6,947
                 (% of PBT)                       10.7       7.6     12.1      24.0      24.1      22.8
                 Recurring PBT                  17,869    20,074   25,242    25,750    28,262    30,509
                 % chg                            (2.2)     12.3     25.7       2.0       9.8       7.9
                 Extraordinary Income/Exp             -    8,606                   -         -        -
                 PBT (reported)                 17,869    28,680   25,242    25,750    28,262    30,509
                 Tax                             2,919     4,256    4,956     5,710     6,783     7,627
                 (% of PBT)                       19.5      17.4     24.4      24.0      24.0      25.0
                 PAT (reported)                 14,950    24,424   20,286    20,040    21,479    22,882
                 Minority interest (MI)             18       80          -         -       41       44
                 PAT after MI (reported)        14,969    24,503   20,286    20,040    21,520    22,926
                 ADJ. PAT(core)                 14,969    15,897   20,286    20,040    21,520    22,926
                 % chg                             1.2       6.2      7.8      (1.2)      7.4       6.5
                 (% of Net Sales)                  9.9       7.8      8.2       6.1       6.6       7.0
                 Basic EPS (`)                    45.7      48.6     62.0      61.2      65.8      70.0
                 Fully Diluted EPS (`)            45.7      48.6     62.0      61.2      65.8      70.0
                 % chg                             1.2       6.2    (17.2)     (1.2)      7.4       6.5




April 20, 2012                                                                                      10
                                                Reliance Industries | 4QFY2012 Result Update



                 Balance sheet (Consolidated)
                 Y/E March (` cr)             FY2009   FY2010   FY2011 FY2012E    FY2013E   FY2014E
                 SOURCES OF FUNDS
                 Equity Share Capital          1,444    2,978    2,981    2,981     2,981     2,981
                 Reserves& Surplus           119,952 138,598 151,112 168,469 186,967 206,570
                 Shareholders’ Funds         121,396 141,576 154,094 171,451 189,950 209,552
                 Total Loans                  76,257   64,606   84,106   70,500   65,390    60,390
                 Deferred Tax Liability        9,551   10,678   11,071   11,071   11,071    11,071
                 Total Liabilities           207,203 216,860 250,073 253,824 267,213 281,816
                 APPLICATION OF FUNDS
                 Gross Block                 157,182 224,125 238,293 254,973 275,371 297,400
                 Less: Acc. Depreciation      50,138   63,934   80,193   91,587 103,244 116,226
                 Net Block                   107,044 160,191 158,099 163,386 172,127 181,174
                 Capital Work-in-Progress     73,846   17,034   29,742   22,000   17,172    16,512
                 Investments                   6,436   13,112   21,596   21,596   21,596    21,596
                 Current Assets               58,746   69,106   98,080 112,228 119,657 125,896
                 Cash                         22,742   13,891   30,139   37,944   47,924    53,640
                 Loans & Advances             11,002   10,647   13,726   13,726   13,726    13,726
                 Other                        25,002   44,568   54,215   60,558   58,007    58,530
                 Current liab.and prov.       38,872   42,586   57,445   65,387   63,341    63,364
                 Net Current Assets           19,874   26,520   40,634   46,841   56,316    62,532
                 Mis. Exp. not written off        4        2        1        1         1         1
                 Total Assets                207,203 216,860 250,073 253,824 267,213 281,816




April 20, 2012                                                                                  11
                                                     Reliance Industries | 4QFY2012 Result Update




                 Cash flow statement (Consolidated)
                 Y/E March (` cr)                  FY2009    FY2010    FY2011 FY2012E FY2013E FY2014E
                 Profit before tax                 17,869    28,680    25,242    25,750    28,262    30,509
                 Depreciation                       7,713    14,001    16,820    11,394    11,657    12,983
                 Change in Working Capital         (5,771)   (5,939) (14,688)     1,599       504     (500)
                 Others                                  -         -   (1,722)         -         -         -
                 Less: Other income                (1,330)   (1,786)         -   (6,192)   (6,811)   (6,947)
                 Direct taxes paid                 (1,926)   (3,140)   (4,243)   (5,710)   (6,783)   (7,627)
                 Cash Flow from Operations         16,555    31,815    33,338    26,841    26,829    28,418
                 (Inc.)/ Dec. in Fixed Assets     (27,732) (23,017) (33,604)     (8,938) (15,570) (21,370)
                 (Inc.)/ Dec. in Investments        3,366     2,645    (8,102)         -         -         -
                 (Inc.)/ Dec. in loans and adv.      (102)      (19)         -         -         -         -
                 Other income                       1,364     2,160          -    6,192     6,811     6,947
                 Others                                  -         -    9,666          -         -         -
                 Cash Flow from Investing         (23,103) (18,231) (32,040)     (2,746)   (8,759) (14,422)
                 Issue of Equity                   15,165       513       196          -         -         -
                 Inc./(Dec.) in loans              16,514    (5,822)   20,701 (13,606)     (5,110)   (5,000)
                 Dividend Paid (Incl. Tax)         (1,908)   (2,219)   (2,431)   (2,683)   (2,981)   (3,279)
                 Others                            (4,954) (14,907)    (8,378)         -         -         -
                 Cash Flow from Financing          24,817 (22,436)     14,950 (16,289)     (8,091)   (8,279)
                 Inc./(Dec.) in Cash               18,268    (8,851)   16,248     7,805     9,979     5,716
                 Opening Cash balances              4,474    22,742    13,891    30,139    37,944    47,924
                 Closing Cash balances             22,742    13,891    30,139    37,944    47,924    53,640




April 20, 2012                                                                                           12
                                                 Reliance Industries | 4QFY2012 Result Update



                 Key ratios
                 Y/E March                      FY2009   FY2010   FY2011 FY2012E   FY2013E    FY2014E
                 Valuation Ratio (x)
                 P/E (on FDEPS)                   16.4      9.8     11.8    11.9      11.1       10.4
                 P/CEPS                           10.5      7.3      6.4     6.9       6.6        6.1
                 P/BV                              1.8      1.5      1.4     1.3       1.1        1.0
                 Dividend yield (%)                0.9      1.0      1.2     1.2       1.4        1.5
                 EV/Sales                          1.7      1.3      1.0     0.7       0.7        0.7
                 EV/EBITDA                        10.9      8.6      6.7     6.8       6.5        5.6
                 EV/Total Assets                   1.2      1.2      1.0     0.9       0.9        0.8
                 Per Share Data (`)
                 EPS (Basic)                      44.6     74.9     62.0    61.2      65.8       70.0
                 EPS (fully diluted)              44.6     74.9     62.0    61.2      65.8       70.0
                 Cash EPS                         69.7     99.8    113.7   105.4     111.3      120.5
                 DPS                               6.4      7.0      8.5     9.0      10.0       11.0
                 Book Value                       407      475      517     575       637        703
                 Returns (%)
                 RoCE (Pre-tax)                   10.0      9.4     10.5     8.8       9.1        9.2
                 Angel RoIC (Pre-tax)             17.4     13.5     13.0    11.6      12.0       12.2
                 RoE                              14.3     14.3     13.7    12.3      11.9       11.5
                 Turnover ratios (x)
                 Asset Turnover (Gross Block)      1.1      1.1      1.1     1.3       1.2        1.1
                 Inventory / Sales (days)         47.4     48.8     50.3    44.3      50.8       49.8
                 Receivables (days)               13.2     13.4     14.9    13.6      15.6       14.9
                 Payables (days)                  84.5     78.8     72.8    65.6      76.3       75.0
                 WC cycle (ex-cash) (days)        20.9      8.7     17.0    10.7       9.7        9.6
                 Solvency ratios (x)
                 Net debt to equity                0.4      0.3      0.2     0.1      (0.0)      (0.1)
                 Net debt to EBITDA                2.0      1.2      0.8     0.3      (0.1)      (0.4)
                 Int. Coverage (EBIT/Int.)         9.8      9.7     10.5     8.3      10.1       14.6




April 20, 2012                                                                                    13
                                                                                     Reliance Industries | 4QFY2012 Result Update




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  Disclosure of Interest Statement                                                   RIL
  1. Analyst ownership of the stock                                                   No
  2. Angel and its Group companies ownership of the stock                             No
  3. Angel and its Group companies' Directors ownership of the stock                  No
  4. Broking relationship with company covered                                        No

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  Ratings (Returns):              Buy (> 15%)                            Accumulate (5% to 15%)                     Neutral (-5 to 5%)
                                  Reduce (-5% to 15%)                    Sell (< -15%)


April 20, 2012                                                                                                                             14

				
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