Reliance Industries declared healthy set of numbers for Q2FY09. The company registered topline growth of 38.1% y-o-y to Rs46, 113 crore (Rs33, 402 crore).
Refining Revenues grew 54.4%y-o-y to Rs36,393 crore (Rs23,575cr). Petrochemical revenues grew 20% y-o-y to Rs1,5549 crore (Rs12,961 crore).
Superior operating performance posted by the company was led by strong GRMs, which stood at $13.4 per barrel compared to our estimates of $12.5 per barrel.
Segment-wise, EBIT margins were lower during the quarter in the refining as well as petrochemical segments.
Refining segment reported EBIT margins of 7.6% (9.8%), while the petrochemical segment reported EBIT margins of 12.2 % (15.6%).
However, on sequential basis, surprise was on EBDIT expansion in the petrochemical segment by 160bp to 12.2%. Bottomline registered growth of 7.4% y-o-y, higher than our estimates. The growth was largely driven by higher profitability in the refining segment. We maintain a BUY on the stock.