Reliance Industries Alert:Another robust performance

Strong downstream performance drives earnings growth

    RIL reported 1Q net profit of INR82.0bn (+9% YoY, +1% QoQ), marginallyabove our estimates. EBITDA at INR115.9bn (+7% YoY, +3% QoQ) was aboveour estimate due to higher than expected refining margins (GRMs). PetchemEBIT rose 37% YoY to INR39.8bn, led by strong polymer spreads and highervolumes from new capacities. Refining EBIT was down 3% YoY to INR63.8bndue to INR appreciation. GRM was significantly above our estimateUSD11.9/bbl (+3.5% YoY, +3.5% QoQ) inspite of lower light-heavy crudespreads due to yield shift and robust risk management. Refinery throughputwas higher at 17.3mmt (+3% YoY). The oil and gas segment was adverselyaffected by lower prices as well as volumes