reliance industries, 1q fy 2014

7/27/2019 Reliance Industries, 1Q FY 2014

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Please refer to important disclosures at the end of this report 1

Quarterly highlights - StandaloneY/E March (` cr) 1QFY2014 1QFY2013 % chg (yoy) 4QFY2013 % chg (qoq)Net operating income 87,645 91,875 (4.6) 84,198 4.1EBITDA 7,075 6,747 4.9 7,825 (9.6)

EBITDA margin (%) 8.1 7.3 73bp 9.3 (122)bp

PAT 5,352 4,503 18.9 5,589 (4.2)Source: Company, Angel Research

For 1QFY2014, Reliance Industries (RIL) reported an in-line PAT performance.

We maintain our Neutral view on the stock.Refining and Oil & Gas segment drags top-line: RILs 1QFY2014 net salesdeclined by 4.6% yoy to `87,645cr, although it was above our estimate of

`82,561cr. The decline in net sales was mainly led by lower Refining segment

sales (-4.6% yoy to `81,458) and lower Oil & Gas segment sales (-42.0% yoy to

`1,454cr). The companys KG-D6 gas production fell to 15mmscmd compared to

33mmscmd in 1QFY2013.

EBITDA rises by 4.9% yoy: RILs EBITDA, however, increased by 4.9% yoy to`7,075cr, on account of higher profits from the Refining and Marketing segment.

The Refining segments EBIT grew by 38.5% yoy to `2,951cr. The companys

GRM stood at US$8.4/bbl in 1QFY2014 compared to US$7.6/bbl in 1QFY2013.Lower depreciation and higher other income boosts PAT: During the quarter,the depreciation (including depletion) expense declined by 12.2% yoy to `2,138cr

due to lower oil and gas production. Other income grew by 33.1% yoy to

`2,535cr. Hence, PAT increased by 18.9% yoy to `5,352cr (in-line with our

estimate of `5,392cr).

Outlook and valuation: For 1QFY2014, RILs Refining segments profit increasedsharply; however, its Oil & Gas segments profitability continued to decline.

Looking ahead, concerns with regards low gas production from the KG D6 block

continue to persist. Hence, we do not expect any significant impact on RILs

profitability due to gas price hike over FY2014-15. Hence, we maintain ourNeutral view on the stock.Key financials (Consolidated)Y/E March (` cr) FY2012 FY2013 FY2014E FY2014ENet sales 358,501 397,062 397,546 421,695% chg 34.9 10.8 0.1 6.1

Net profit 19,963 20,879 23,668 25,137% chg 3.5 4.6 13.4 6.2

EPS (`) 66.0 71.1 72.3 76.8EBITDA margin (%) 9.7 8.3 8.9 8.7

P/E (x) 14.0 13.0 12.8 12.0

RoE (%) 12.3 11.9 12.3 11.8

RoCE (%) 8.8 7.9 8.7 8.5

P/BV (x) 1.6 1.5 1.3 1.2

EV/ Sales (x) 0.7 0.7 0.7 0.6

EV/ EBITDA (x) 7.6 8.4 7.6 7.2

Source: Company, Angel Research

NEUTRALCMP `923

Target Price -

Investment Period -

Stock Info

Sector

Net Debt (`cr) (3,982)

Bloomberg Code

Shareholding Pattern (%)

Promoters 45.3

MF / Banks / Indian Fls 11.5

FII / NRIs / OCBs 21.5Indian Public / Others 21.7

Abs. (%) 3m 1yr 3yr

Sensex 6.0 16.6 12.4

RIL 18.1 26.8 (12.6)

10

20,150

6,029

RELI.BO

RIL@IN

298,136

1.2

955/707

450,330

Oil & Gas

Avg. Daily Volume

Market Cap (`cr)

Beta

52 Week High / Low

Face Value (`)

BSE Sensex

Nifty

Reuters Code

Bhavesh ChauhanTel: 022- 39357800 Ext: 6821

[email protected]

Vinay RachhTel: 022- 39357800 Ext: 6841

[email protected]

Reliance IndustriesPerformance Highlights

1QFY2014 Result Update | Oil & Gas

July 19, 2013


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Reliance Industries| 1QFY2014 Result Update

July 19, 2013 2

Exhibit 1:1QFY2014 Performance (Standalone)Y/E March (` cr) 1QFY2014 1QFY2013 % chg (yoy) 4QFY2013 % chg (qoq) FY2013 FY2012 % chg (yoy)Net Operating Income 87,645 91,875 (4.6) 84,198 4.1 360,297 329,904 9.2COGS 73,729 79,335 (7.1) 70,982 3.9 306,127 274,814 11.4

Total operating expenditure 80,570 85,128 (5.4) 76,373 5.5 329,510 296,285 11.2

EBITDA 7,075 6,747 4.9 7,825 (9.6) 30,787 33,619 (8.4)EBITDA Margin (%) 8.1 7.3 9.3 8.5 10.2

Other Income 2,535 1,904 33.1 2,243 13.0 7,998 6,192 29.2

Depreciation 2,138 2,434 (12.2) 2,239 (4.5) 9,465 11,394 (16.9)

Interest 810 784 3.3 709 14.2 3,036 2,667 13.8

Extraordinary Items - - - - -

PBT 6,662 5,433 22.6 7,120 (6.4) 26,284 25,750 2.1PBT Margin (%) 7.6 5.9 8.5 7.3 7.8

Total Tax 1,310 960 36.5 1,531 (14.4) 5,281 5,710 (7.5)% of PBT 19.7 17.7 21.5 20.1 22.2

PAT 5,352 4,503 18.9 5,589 (4.2) 21,003 20,040 4.8Exceptional items - - - - -

Adj. PAT 5,352 4,503 18.9 5,589 (4.2) 21,003 20,040 4.8PAT Margin (%) 6.1 4.9 6.6 5.8 6.1


Exhibit 2:Segmental break-up (Standalone)(` cr) 3QFY12 4QFY12 1QFY13 2QFY13 3QFY13 4QFY13 1QFY14RevenuesPetrochemicals 19,781 21,412 21,839 22,058 22,053 22,158 21,950

Refining & Marketing 76,738 76,211 85,383 83,878 86,641 77,872 81,458

Oil & Gas 2,832 2,609 2,508 2,254 1,921 1,597 1,454

Others 208 260 248 169 176 359 616

Gross Revenue 99,559 100,492 109,978 108,359 110,791 101,986 105,478EBITPetrochemicals 2,157 2,174 1,756 1,740 1,937 1,895 1,888

Refining & Marketing 1,685 1,696 2,151 3,523 3,615 3,520 2,951

Oil & Gas 1,294 951 972 866 590 460 352

Others 9 9 1 71 77 48 84

Total EBIT 5,145 4,830 4,880 6,200 6,219 5,923 5,275EBIT Margin (%)Petrochemicals 10.9 10.2 8.0 7.9 8.8 8.6 8.6

Refining & Marketing 2.2 2.2 2.5 4.2 4.2 4.5 3.6

Oil & Gas 45.7 36.5 38.8 38.4 30.7 28.8 24.2

Others 4.3 3.5 0.4 42.0 43.8 13.4 13.6

Total 5.2 4.8 4.4 5.7 5.6 5.8 5.0



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July 19, 2013 3

Exhibit 3:1QFY2014 actual vs estimates(` cr) Estimates Actual Variation (%)Net sales 82,561 87,645 6.2EBITDA 7,364 7,075 (3.9)EBITDA margin (%) 8.9 8.1 0.8

Adj. PAT 5,392 5,352 (0.7)


Refining and Oil & Gas segment drags top-lineRILs 1QFY2014 net sales declined by 4.6% yoy to `87,645cr, although it was

above our estimate of `82,561cr. The decline in net sales was mainly led by lower

Refining segment sales (-4.6% yoy to `81,458) and lower Oil & Gas segment sales

(-42.0% yoy to `1,454cr). RILs KG-D6 gas production fell to 15mmscmd

compared to 33mmscmd in 1QFY2013.

Exhibit 4:Sales growth trend

85,135 85,182

91,87590,336

93,886

84,198

87,645

42.4

17.213.4 15.0

10.3

(1.2) (4.6)

(10.0)

-

10.0

20.0

30.0

40.0

50.0

55,00058,00061,00064,000

67,00070,00073,00076,00079,00082,00085,00088,00091,00094,00097,000

3QFY12 4QFY12 1QFY13 2QFY13 3QFY13 4QFY13 1QFY14

(%)

(`cr)

Net sales Net sales growth (RHS)


Exhibit 5:KG D6 production continued to slide45

41

35 33

29

24

19

15

0

5

10

15

20

25

30

3540

45

50

2QFY12 3QFY12 4QFY12 1QFY13 2QFY13 3QFY13 4QFY13 1QFY14

(mmscm

d)



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July 19, 2013 4

EBITDA rises by 4.9% yoyRILs EBITDA, however, increased by 4.9% yoy to `7,075cr, on account of higher

profits from the Refining and Marketing segment. The Refining segments EBIT

grew by 38.5% yoy to `2,951cr. RILs GRM stood at US$8.4/bbl in 1QFY2014

compared to US$7.6/bbl in 1QFY2013.

Exhibit 6:Segmental EBIT Performance

0%

20%

40%

60%

80%

100%


Petrochemicals Refining Oil and gas Others


Exhibit 7:Operating profit trend7,285

6,5636,747

7,7778,373

7,8257,075

8.6

7.7

7.3

8.6

8.9 9.3

8.1

6.0

8.0

10.0

12.0

14.0

16.0

18.0

-

2,000

4,000

6,000

8,000

10,000


(%)

(`cr)

Operating Profit Operating Margins (RHS )


Lower depreciation and higher other income boost PATDuring the quarter, the depreciation (including depletion) expense declined by

12.2% yoy to `2,138cr due to lower oil and gas production. Other income grew by

33.1% yoy to `2,535cr. Hence, the companys PAT increased by 18.9% yoy to

`5,352cr (in-line with our estimate of `5,392cr).

Exhibit 8:Other income growth trend

29.9

42.3

35.0

30.925.4

31.5

38.1

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

-

500

1,000

1,500

2,000

2,500

3,000


(%)

(`cr)

Othe r income Othe r inc. as a % of PBT (RHS)


Exhibit 9:PAT growth trend

4,4404,236 4,503

5,4095,502 5,589 5,352

(13.6)

(21.2)

(20.5)

(5.2)

23.9

31.918.9

(30.0)

(20.0)

(10.0)

0.0

10.0

20.0

30.0

40.0

-

1,000

2,000

3,000

4,000

5,000

6,000


(%)

(`cr)

PAT PAT growth (RHS)



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July 19, 2013 5

Segment-wise performance

Refining: During the quarter,crude processing stood at 17.1mn tonne (comparedto 17.3mn tonne in 1QFY2013), with its refinery reporting capacity utilization of

110%. The Refining segments revenue declined by 4.6% yoy to `81,458cr. The

GRM improved to US$8.4/bbl in 1QFY2014, compared to US$7.6/bbl in

1QFY2013. The Refining segments EBIT increased by 38.5% yoy to `2,951cr due

to higher margins.

Exhibit 10:RILs GRM vs Benchmark Singapore GRM

-

2.0

4.0

6.0

8.0

10.0

12.0

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

4QFY12

1QFY13

2QFY13

3QFY13

4QFY13

1QFY14

(US$

/bbl)

RIL GRM Singapore GRM


Exhibit 11:Capacity utilization trend

7.0

9.0

11.0

13.0

15.0

17.0

20.0

40.0

60.0

80.0

100.0

120.0

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

4QFY12

1QFY13

2QFY13

3QFY13

4QFY13

1QFY14

(mn

tonnes

)

(%)

Capacity util ization Crude processing (RHS)


Petrochemicals: During 1QFY2014, the Petrochemicals segments revenue growthwas flat yoy at `21,950cr. However, the segments EBIT grew by 7.5% yoy to

`1,888cr on account of improvement in the ethylene chain margins.

Oil and Gas: The Oil and Gas segments revenue decreased by 42.0% yoy to`1,454cr due to lower production from the KG-D6 block. Production from KG D6

declined to 15mmscmd in 1QFY2014 compared to 33mmscmd in 1QFY2013,


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July 19, 2013 6

mainly due to reservoir complexity. Consequently, the segments EBIT decreased by

63.8% yoy to `352cr, during the quarter.

Investment arguments

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, backed by a significant cash pile (`93,066cr as on June 30, 2013), and

treasury stocks. Initiatives, such as acquisition of shale gas assets, could prove to

be a potential trigger for the stock in the long term.

Declining KG-D6 production remains a key concern: RILs KG D6 production

has declined from 59mmscmd in 1QFY2011 to 15mmscmd in 1QFY2014. Going

forward, RIL has stated that additional investments are required to increase

production from KG D6. However, production is unlikely to increase during

FY2014-15, in our view.

Higher gas price positive for RIL, albeit in the long-term: During June 2013,

the Cabinet Committee of Economic Affairs (CCEA) announced to raise gas price

based on Rangarajan Committee report (likely to double to US$8.4/mmbtu

effective April 1, 2014) for a period of five years. RIL is likely to be a key

beneficiary of the increase in gas price. However, given the decline in production

from the KG D6 block, higher gas price realizations are unlikely to result in

meaningful improvement in profitability during FY2014-15.


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July 19, 2013 7

Outlook and valuation

For 1QFY2014, RILs Refining segments profit increased sharply; however, its Oil

& Gas segments profitability continued to decline. Looking ahead, concerns with

regards low gas production from the KG D6 block continue to persist. Hence, we

do not expect any meaningful impact on RILs profitability due to gas price hike

over FY2014-15. Hence, we maintain our Neutral view on the stock.Exhibit 12:SOTP valuation (FY2015E)Business segment `/shareRefining (EV/EBITDA 6.5x) 330

Petrochemical (EV/EBITDA 6.5x) 231

KG-D6 gas (DCF) 60

KG-MA oil (DCF) 45

NEC-25 (EV/boe 4.5x) 54D3 (EV/boe 4.5x) 60

D9 (EV/boe 4.5x) 35

Shale gas ventures (EV/boe 3.0x) 60

Other prospective basins 20

Retail 23

Investment/Others 117

Total EV 1,034Net debt (85)

Equity value (`) 949Source: Company, Angel Research

Exhibit 13:Angel EPS forecast vs consensusAngel forecast Bloomberg consensus Variation (%)

FY2014E 72.3 70.6 2.5FY2015E 76.8 78.7 (2.4)



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July 19, 2013 8

Exhibit 14:Recommendation summaryCompany CMP TP Reco. Mcap Upside P/E (x) P/BV (x) EV/EBITDA (x) RoE (%) RoCE (%)

(`) (`) (` cr) (%) FY14E FY15E FY14E FY15E FY14E FY15E FY14E FY15E FY14E FY15ERIL 923 - Neutral 298,136 - 12.8 12.0 1.3 1.2 7.6 7.2 12.3 11.8 8.7 8.5ONGC 316 387 Buy 266,974 22 9.1 7.5 1.6 1.4 3.9 2.9 18.3 19.4 19.0 21.1

Cairn India 308 345 Accum. 59,132 12 5.8 6.2 1.0 0.9 3.5 3.2 19.6 15.8 18.7 15.3GAIL 333 - Neutral 41,529 - 9.8 9.3 1.5 1.3 4.5 3.9 16.4 15.2 17.4 16.2

Source: Angel Research

Exhibit 15:One-year forward P/E

0

200

400

600

8001,000

1,200

1,400

1,600

Jul-08

Oc

t-08

Jan-0

9

Apr-

09

Jul-09

Oc

t-09

Jan-1

0

Apr-

10

Jul-10

Oc

t-10

Jan-1

1

Apr-

11

Jul-11

Oc

t-11

Jan-1

2

Apr-

12

Jul-12

Oc

t-12

Jan-1

3

Apr-

13

Jul-13

Sharepric

e(`)

7x 10x 13x 16x 19x


Exhibit 16:Premium/Discount in RIL (P/E) vs Sensex (P/E)

(40)

(30)

(20)

(10)

0

10

20

30

40

50

Apr-

09

Jun-0

9

Aug-0

9

Oc

t-09

Dec-0

9

Fe

b-1

0

Apr-

10

Jun-1

0

Aug-1

0

Oc

t-10

Dec-1

0

Fe

b-1

1

Apr-

11

Jun-1

1

Aug-1

1

Oc

t-11

Dec-1

1

Fe

b-1

2

Apr-

12

Jun-1

2

Aug-1

2

Oc

t-12

Dec-1

2

Fe

b-1

3

Apr-

13

Jun-1

3

(%)

Prem/Disc to Sensex Historic average disc.



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July 19, 2013 9

Company background

RIL, one of India's largest listed companies, ranks amongst the biggest

petrochemical companies in Asia. RIL operates in three business segments -

Petrochemicals, Refining, and Oil & Gas. The company is the world's largest

polyester producer; plus it has the world's largest refinery in Jamnagar. During

2002, RIL discovered huge natural gas reserves in KG D6 block of Andhra

Pradesh. In February 2011, RIL sold 30% stake in 23 oil & gas blocks to UK-based

BP for US$7.2bn.


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July 19, 2013 10

Profit and loss (Consolidated)

Y/E March (` cr) FY2010 FY2011 FY2012 FY2013 FY2014E FY2015ETotal operating income 203,740 265,811 358,501 397,062 397,546 421,695% chg 34.7 30.5 34.9 10.8 0.1 6.1Total Expenditure 172,846 227,767 323,684 364,017 362,314 385,092

Net Raw Materials 147,065 197,392 288,956 321,825 320,319 340,458

Purchases of finished goods 7,538 7,032 9,235 10,425 10,376 11,029

Personnel 2,791 3,324 3,955 5,179 5,516 5,862

Other 15,452 20,019 21,538 26,588 26,464 28,127

EBITDA 30,894 38,044 34,817 33,045 35,232 36,602% chg 31.9 23.1 (8.5) (5.1) 6.6 3.9

(% of Net Sales) 15.2 14.3 9.7 8.3 8.9 8.7

Depreciation & Amortization 10,946 14,121 12,401 11,232 9,769 9,902

EBIT 19,948 23,923 22,416 21,813 25,464 26,701% chg 12.2 19.9 (6.3) (2.7) 16.7 4.9

(% of Net Sales) 9.8 9.0 6.3 5.5 6.4 6.3

Interest & other Charges 2,060 2,411 2,893 3,463 3,290 3,054

Other Income 2,185 2,543 6,124 7,800 8,112 8,518

(% of PBT) 7.6 10.6 24.2 29.8 26.8 26.5

Recurring PBT 20,074 24,055 25,647 26,150 30,286 32,164% chg 12.3 19.8 6.6 2.0 15.8 6.2

Extraordinary Income/Exp 8,606 (309) - - -

PBT (reported) 28,680 24,055 25,338 26,150 30,286 32,164Tax 4,256 4,783 5,691 5,331 6,663 7,076

(% of PBT) 17.4 24.8 29.0 21.0 22.0 22.0

PAT (reported) 24,424 19,272 19,647 20,819 23,623 25,088Share of (profit )/ loss to MI 80 - 67 45 49

PAT after MI (reported) 24,503 19,272 19,647 20,886 23,668 25,137Share of Loss trans. to MI 22 7 (7)ADJ. PAT(core) 15,897 19,294 19,963 20,879 23,668 25,137% chg 6.2 21.4 3.5 4.6 13.4 6.2

(% of Net Sales) 7.8 7.3 5.6 5.3 6.0 6.0

Basic EPS (`) 74.9 64.6 66.0 71.1 72.3 76.8Fully Diluted EPS ( ) 74.9 67.8 66.0 71.1 72.3 76.8% chg 67.8 (9.4) (2.8) 7.8 1.7 6.2

Note: Some of the figures from FY2011 onwards are reclassified; hence not comparable with

previous year numbers


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July 19, 2013 11

Balance Sheet (Consolidated)

Y/E March (` cr) FY2010 FY2011 FY2012 FY2013 FY2014E FY2015ESOURCES OF FUNDSEquity Share Capital 2,978 2,981 2,979 2,936 2,936 2,936Reserves& Surplus 138,598 151,112 166,466 179,094 199,781 221,345

Shareholders Funds 141,576 154,093 169,445 182,030 202,717 224,281Minority Interest 802 799 949 949 949

Total Loans 64,606 79,988 82,635 89,322 88,322 85,322

Deferred Tax Liability 10,678 11,071 11,567 11,588 11,588 11,588

Long term provisions 214 421 531 531 531

Total Liabilities 216,860 246,177 264,867 284,445 304,132 322,696APPLICATION OF FUNDSGross Block 224,125 238,293 233,475 240,971 260,249 281,069

Less: Acc. Depreciation 63,934 80,193 94,661 107,484 117,253 127,155

Net Block 160,191 158,100 138,814 133,487 142,996 153,914Intangible Assets under Dev. 22,835 18,868 32,761 32,761 32,761

Capital Work-in-Progress 17,034 5,339 6,495 17,191 19,500 20,500

Investments 13,112 21,596 38,596 42,848 42,848 42,848LT Loans and advances 6,839 6,741 9,025 9,025 9,025Current Assets 69,106 92,808 117,676 127,045 136,007 147,334

Cash 13,891 30,139 40,731 50,456 52,973 60,000

Loans & Advances 10,647 5,891 9,754 10,455 10,455 10,455

Other 44,568 56,778 3,560 1,783 1,783 1,783

Current liabilities and provisions 42,586 61,342 62,323 77,912 79,005 83,686

Net Current Assets 26,520 31,466 55,353 49,133 57,002 63,649Mis. Exp. not written off 2 1 - - - -

Total Assets 216,860 246,176 264,867 284,445 304,132 322,696




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July 19, 2013 12

Cash flow statement (Consolidated)

Y/E March (` cr) FY2010 FY2011 FY2012 FY2013 FY2014E FY2015EProfit before tax 28,680 24,055 25,408 26,217 30,286 32,164

Depreciation 14,001 16,820 14,827 13,393 9,769 9,902Change in Working Capital (5,939) (13,501) (6,748) 7,372 (5,352) 380

Others (1,786) (1,722) (4,053) (5,240) (8,112) (8,518)

Less: Other income - - - - - -

Direct taxes paid (3,140) (4,243) (4,881) (4,824) (6,663) (7,076)

Cash Flow from Operations 31,815 33,338 24,483 36,918 19,928 26,852(Inc.)/ Dec. in Fixed Assets (23,017) (33,604) 6,936 (28,588) (21,587) (21,820)

(Inc.)/ Dec. in Investments 2,645 (8,102) (14,992) (2,724) - -

(Inc.)/ Dec. in loans and adv. (19) - 676 (2,610) - -

Other income - - 1,079 6,272 8,112 8,518

Others 2,160 9,666 - - - -

Cash Flow from Investing (18,231) (32,040) (6,301) (27,650) (13,475) (13,302)Issue of Equity 513 196 (185) (2,670) - -

Inc./(Dec.) in loans (5,822) 20,701 (1,048) 10,654 (1,000) (3,000)

Dividend Paid (Incl. Tax) (2,219) (2,431) (2,772) (2,949) (2,936) (3,523)

Others (14,907) (8,378) (3,585) (4,627) - -

Cash Flow from Financing (22,436) 14,950 (7,590) 408 (3,936) (6,523)Inc./(Dec.) in Cash (8,851) 16,248 10,592 9,676 2,517 7,027

Opening Cash balances 22,742 13,891 30,139 40,731 50,456 52,973Closing Cash balances 13,891 30,139 40,731 50,456 52,973 60,000




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Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com

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Angel Broking Pvt. Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, makeinvestment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in thisdocument are those of the analyst, and the company may or may not subscribe to all the views expressed within.

Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions andtrading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company'sfundamentals.

The information in this document has been printed on the basis of publicly available information, internal data and other reliablesources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as thisdocument is for general guidance only. Angel Broking Pvt. Limited or any of its affiliates/ group companies shall not be in any wayresponsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report.Angel Broking Pvt. Limited has not independently verified all the information contained within this document. Accordingly, we cannottestify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document.While Angel Broking Pvt. Limited endeavours to update on a reasonable basis the information discussed in this material, there may beregulatory, compliance, or other reasons that prevent us from doing so.

This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced,redistributed or passed on, directly or indirectly.

Angel Broking Pvt. Limited and its affiliates may seek to provide or have engaged in providing corporate finance, investment bankingor other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report orin the past.

Neither Angel Broking Pvt. Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise fromor in connection with the use of this information.

Note: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to thelatest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Pvt. Limited and its affiliates mayhave investment positions in the stocks recommended in this report.

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 Yes

4. Broking relationship with company covered No

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

Note: We have not considered any Exposure below `1 lakh for Angel, its Group companies and Directors

reliance industries, 1q fy 2014

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