RIL Q4 numbers a positive surprise: Prakash Diwan
Q4 GMRs at $10.1 a barrel were much better than what the market was anticipating, says Diwan in a chat with ET Now.
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| In a chat with ET Now, Prakash Diwan, Director, Altamount Capital Management, shares his view on Reliance Industries' Q4 earnings.
ET Now: What is your view on Reliance Industries Q4 results. The gas business has come off a bit, petchem ho-hum, but the reported numbers were much higher. In addition, gross refinery margins (GRMs) or the refining business did extremely well.
Prakash Diwan: Absolutely. It is such a pleasant surprise to see such a huge balance sheet...
ET Now: Surprise! Did I hear you use the term 'surprise'?
Prakash Diwan: By the way, do you want to call it a 'shock'?
The best part about the Q4 results is that the company has managed to keep the raw material cost under check. Look at where the refining Ebitda, it has dramatically changed.
The GMRs at $10.1 a barrel is much better than what all of us were expecting. That said, the key is interest cost has been absolutely low, which helped tamed the raw material cost.
The company always throw surprises, which makes up for all the other areas of non-performance. I am glad that the petchem numbers have not diluted because there was a possibility that could also get impacted from the 9 per cent plus kind of EBIT that petchem has reported. All in all, it is nice to see these numbers on a day like this.
ET Now: What is your view on Reliance Industries Q4 results. The gas business has come off a bit, petchem ho-hum, but the reported numbers were much higher. In addition, gross refinery margins (GRMs) or the refining business did extremely well.
Prakash Diwan: Absolutely. It is such a pleasant surprise to see such a huge balance sheet...
ET Now: Surprise! Did I hear you use the term 'surprise'?
Prakash Diwan: By the way, do you want to call it a 'shock'?
The best part about the Q4 results is that the company has managed to keep the raw material cost under check. Look at where the refining Ebitda, it has dramatically changed.
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The GMRs at $10.1 a barrel is much better than what all of us were expecting. That said, the key is interest cost has been absolutely low, which helped tamed the raw material cost.
The company always throw surprises, which makes up for all the other areas of non-performance. I am glad that the petchem numbers have not diluted because there was a possibility that could also get impacted from the 9 per cent plus kind of EBIT that petchem has reported. All in all, it is nice to see these numbers on a day like this.
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