RIL Posts Q4 Results
The petrochemical giant, Reliance Industries posted its Q4 results today. The results was as per the street expectations. RIL posted a net profit growth of 2.18% on sequential basis during the quarter.
RIL's net profit increased to Rs 5631 crore in Q4FY14 from Rs 5511 crore in third quarter of FY14. The growth in its net profit was despite of 8.04% de-growth in its revenue on sequential basis. The company's revenue decreased to Rs 95193 crore in Q4FY14 from Rs 103521 crore in Q3FY14. However, RIL managed to control its cost which was down by 9.42% on sequential basis.
The lower total expenses helped company to expand its EBITDA margin by 139 basis point during the last quarter of FY14. The EBITDA margins stood at 8.75% during the same quarter. RIL too showed expansion of 59 basis points on sequential basis in its net profit margin during the period under review. The net margin stood at 5.92% in Q4FY14. Though both EBITDA and Net profit margins during March quarter were considerable on lower side compared to that in same period last year, the company showed a growth of 6.47% and 0.75% on yearly basis in its forth quarter EBITDA and Net profit in current financial year.
Segment-wise, RIL showed negative growth in all its major segment revenue. However, EBIT margins in Petrochemicals and Refining were seen improvement on sequential basis.
For complete financial year 2014, RIL showed a 8.28% growth in its topline while 4.67% growth in its topline compared to FY2013. However, on margins front, both EBITDA and net profit margins showed contraction on 63 and 19 basis point in FY14 respectively. For FY14, segment-wise, EBIT margins too showed contraction in all its business segments.
We believe that RIL will continue to show muted performance for atleast next couple of quarters. The company is facing problems related to lower gross refining margins and under recovery in KG basin. We still advice our readers to stay away from this stock for next couple of quarters. The recent market rally in the stock is only because of overall market sentiments as there has been not considerable fundamental changes in the stock.