RIL's Q4 PAT seen down 24% at Rs 4092.3 cr: MOST

Motilal Oswal has come out with its earnings estimates on Reliance Industries for March quarter FY12. According to the research firm, the company's Q4FY12 sales are likely to go up by 28.5% at Rs 93400 crore, Year-on-Year (YoY) basis.

The company's net profit is seen down 23.9% at Rs 4092.3 crore, YoY. Motilal Oswal's estimates on Reliance Industries Q4 results: We expect RIL to report a GRM of USD6.5/bbl v/s USD6.8/bbl in 3QFY12. Petchem EBIT is estimated to be lower QoQ led by sharp decline in margins and flat volumes. We expect average KG-D6 volumes in 4QFY12 at 35mmscmd v/s 41mmscmd in 3QFY12. We expect RIL to report net profit of INR40.9b (v/s INR53.8b in 4QFY11 and INR44.4b in 3QFY12). The subdued performance would be on account of lower refining and petchem margins, and continuous decline in gas production from the KG-D6 basin, which would partially get offset by higher other income. Key things to watch out for: (1) GRM, (2) petchem margin, and (3) KG-D6 production. The stock trades at 10.8x FY13E adjusted EPS of INR66.9. We maintain Neutral due to concerns on cash utilization, RoE reaching sub 15% levels and increased share (80%) of cyclical refining and petchem businesses to the earnings. Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.