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With index heavyweight Reliance Industries declaring its numbers yesterday, here is what some brokers said about the numbers:
Sharekhan: “Reliance Industries Ltd (RIL)’s earnings in Q1FY2012 have been reported at Rs 5,661 crore (in line with our estimate). Though the sales were 15 per cent higher than expected, earnings fell in line of our estimates due to the lower than anticipated margins in petrochem and upstream exploration and production (E&P) segment. The E&P margins were dented by lower production and spreads in the polyester and polymer chains were also under pressure, but the gross refining margins (GRM) were healthy at $10.3 per barrel. This is better than the GRM margin of $9.2 per barrel in Q4FY2011 and $7.3 per barrel in Q1FY2011.’’
Mr D.K Aggarwal, Managing Director, Sanlam Investments: “Reliance results are very well in line with the market expectations. The PAT growth of 17 per cent is almost in line with our estimated levels of 16 per cent growth. Gross refining margins have been impressive at $10.3 per barrel against Singapore GRMs of $8.80 per barrel. This surely indicates that Reliance was able to manage a healthy spread over Singapore GRM. I feel that the recent clearance for BP deal can be a positive news for the company along with technical expertise of BP, as it brings $7.2 billion of money to the company's kitty. However, till the technical issues in KG-D6 basin are resolved, it can still be a major challenge for the stock going forward.’’
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