3QFY2012 Result Update | Oil & Gas

January 23, 2011

Reliance Industries
Performance Highlights
Y/E March (` cr) Net operating income EBITDA EBITDA margin (%) PAT
Source: Company, Angel Research

BUY
CMP Target Price
% chg (yoy) 42.4 (23.7) (741bp) (13.6) 2QFY12 78,569 9,844 12.5 5,703 % chg (qoq) 8.4 (26.0) (397bp) (22.1)

`771 `923
12 Months

3QFY12 85,135 7,285 8.6 4,440

3QFY11 59,789 9,545 16.0 5,136

Investment Period
Stock Info Sector Market Cap (` cr) Beta 52 Week High / Low Avg. Daily Volume Face Value (`) BSE Sensex Nifty Reuters Code Bloomberg Code

Oil & Gas 252,460 1.1 1,066/689 775420 10 16,752 5,046 RELI.BO RIL@IN

For 3QFY2012, Reliance Industries (RIL) reported 42.4% yoy growth in its top line. However, EBITDA and PAT declined by 23.7% yoy and 13.6% yoy, respectively, due to a decline in KG D6 gas production and lower Gross refining margins (GRMs). Robust 3QFY2012 performance: RILs net sales increased by 42.4% yoy to `85,135cr, above our estimate of `78,364cr. However, RILs EBITDA decreased by 23.7% yoy to `7,285cr on account of lower profits from all the three main segments. GRMs stood at US$6.8/bbl in 3QFY2012 compared to US$9.0 in 3QFY2011 and US$9.1/bbl in 2QFY2012. Production from KG-D6 stood at 41mmscmd in 3QFY2012 compared to 45mmscmd in 2QFY2012. Other income increased by 131.7% yoy to `1,717cr, which resulted in net profit decreasing by only 13.6% yoy to `4,440cr, slightly below our estimate of `4,519cr. RIL turns net debt-free; announces buyback details: During 3QFY2012, RIL turned into a net debt-free company, as its debt stood at `74,503cr and cash stood at `74,539cr, as on December 31, 2011. RIL announced share buyback program of 12cr shares (`10,440cr) through open market purchases at a buyback price not exceeding `870/share. Outlook and valuation: RILs refining and petrochemical segments profits declined during 3QFY2012. Going forward, although there are some concerns on the KG basin gas output, we believe RIL along with BP will optimize producing blocks in KG D6. Moreover, the stock is currently trading at a PE of 12.0x FY2012E and 11.2x FY2013E, compared to its past five years trading average of 17.7x forward PE. Thus, we maintain our Buy recommendation on RIL with an SOTP target price of `923. Key financials (Consolidated)
Y/E March (` cr) Net sales % chg Net profit % chg EPS (`) EBITDA margin (%) P/E (x) RoE (%) RoCE (%) P/BV (x) EV/ Sales (x) EV/ EBITDA (x)
Source: Company, Angel Research

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 44.7 11.4 17.0 26.9

Abs. (%) Sensex RIL

3m
(1.2) (5.4)

1yr
(12.1) (18.2)

3yr
90.0 36.1

FY2010 203,740 34.7 18,818 24.5 74.9 15.2 10.3 14.3 9.4 1.6 1.4 9.0

FY2011 265,811 30.5 20,368 8.2 58.9 14.7 13.1 13.8 10.6 1.5 1.0 6.9

FY2012E 316,591 19.1 21,032 3.3 64.3 11.3 12.0 12.9 9.6 1.3 0.8 6.7

FY2013E 332,554 5.0 22,567 7.3 69.0 11.4 11.2 12.4 9.7 1.2 0.7 6.1

Bhavesh Chauhan
Tel: 022- 39357800 Ext: 6821 bhaveshu.chauhan@angelbroking.com

Please refer to important disclosures at the end of this report

Reliance Industries | 3QFY2012 Result Update

Exhibit 1: 3QFY2012 performance (Standalone)

Y/E March (` cr) Net operating income COGS Total operating exp. EBITDA EBITDA margin (%) Other income Depreciation Interest Extraordinary items PBT PBT margin (%) Total tax % of PBT PAT Exceptional items Adj. PAT PAT margin (%)
Source: Company, Angel Research

3QFY2012 3QFY2011 % chg (yoy) 2QFY2012 % chg (qoq) 85,135 74,190 77,850 7,285 8.6 1,717 2,570 694 5,738 6.7 1,298 22.6 4,440 4,440 5.2 59,789 45,585 50,244 9,545 16.0 741 3,359 549 6,378 10.7 1,242 19.5 5,136 5,136 8.6 (13.6) (13.6) 4.5 (10.0) 131.7 (23.5) 26.4 42.4 62.8 54.9 (23.7) 78,569 64,661 68,725 9,844 12.5 1,102 2,969 660 7,317 9.3 1,614 22.1 5,703 5,703 7.3 (22.1) (22.1) (19.6) (21.6) 55.8 (13.4) 5.2 8.4 14.7 13.3 (26.0)

Exhibit 2: Segmental break-up (Standalone)

Y/E March (` cr) Revenue Petrochemicals Refining and marketing Oil and gas Others Gross revenue EBIT Petrochemicals Refining and marketing Oil and gas Others Total EBIT EBIT margin (%) Petrochemicals Refining and marketing Oil and gas Others Total
Source: Company, Angel Research

3QFY2012 3QFY2011 % chg (yoy) 2QFY2012 % chg (qoq) 19,781 76,738 2,832 208 99,559 15,982 52,524 4,178 180 72,864 23.8 46.1 (32.2) 15.6 36.6 18,366 73,689 3,894 235 96,184 7.7 4.1 (27.3) (11.5) 3.5

2,157 1,685 1,294 9 5,145

2,429 2,436 1,504 9 6,378

(11.2) (30.8) (14.0) 0.0 (19.3)

2,215 3,199 1,473 8 6,895

(2.6) (47.3) (12.2) 12.5 (25.4)

10.9 2.2 45.7 4.3 5.2

15.2 4.6 36.0 5.0 8.8

12.1 4.3 37.8 3.4 7.2

January 23, 2011

Reliance Industries | 3QFY2012 Result Update

Exhibit 3: 3QFY2012 actual vs. estimates

(` cr) Net operating income EBITDA EBITDA margin (%) PBT Adj. PAT
Source: Company, Angel Research

Estimates
78,364 8,071 10.3 5,821 4,519

Actual
85,135 7,285 8.6 5,738 4,440

Variation (%)
8.6 (9.7) 1.7 (1.4) (1.7)

Petrochemicals and refining segments drive RILs top-line growth

RILs 3QFY2012 net sales increased by 42.4% yoy to `85,135cr, above our estimate of `78,364cr. Net sales growth was mainly driven by increases in the petrochemicals segment (+23.8% yoy to `19,781cr) and refining segment (+46.1% yoy to `76,738cr). During 3QFY2012, RIL turned into a net debt-free company, as its debt stood at `74,503cr and cash stood at `74,539cr, as on December 31, 2011. RIL announced share buyback program of 12cr shares (`10,440cr) through open market purchases at a buyback price not exceeding `870.

Exhibit 4: Sales growth trend

88,000 85,000 82,000 79,000 76,000 73,000 70,000 67,000 64,000 61,000 58,000 55,000 100.0 86.7 90.0 80.0 70.0 60.0 42.4 39.1 22.7 5.2 1QFY11 2QFY11 3QFY11 4QFY11 1QFY12 2QFY12 3QFY12
Operating revenues Operating revenues growth (RHS)

(` cr)

36.7

40.0 30.0 20.0 10.0 -

26.2

Source: Company, Angel Research

EBITDA declines due to lower GRMs and decline from KG D6

RILs EBITDA decreased by 23.7% yoy to `7,285cr on account of lower profits from all the three main segments. The refining segments EBIT decreased by 30.8% yoy to `1,685cr; the petrochemical segments EBIT decreased by 11.2% yoy to `2,157cr; and the oil and gas segments EBIT decreased by 14.0% yoy to `1,294cr during the quarter. GRMs stood at US$6.8/bbl in 3QFY2012 compared to US$9.0 in 3QFY2011 and US$9.1/bbl in 2QFY2012. Production from KG-D6 stood at 41mmscmd in 3QFY2012 compared to 45mmscmd in 2QFY2012.

January 23, 2011

(%)

50.0

Reliance Industries | 3QFY2012 Result Update

Exhibit 5: EBIT break-up

100% 80% 60% 40%

Exhibit 6: Operating performance trend

12,000 10,000 16.0 16.3 16.0 13.5 12.5 12.0 8.6 10.0 8.0 6.0 1QFY11 2QFY11 3QFY11 4QFY11 1QFY12 2QFY12 3QFY12 Operating Profit Operating Margins (RHS) 18.0 16.0 14.0

(` cr)

8,000 6,000 4,000

20% 0% 1QFY11 2QFY11 3QFY11 Refining 4QFY11 1QFY12 2QFY12 Others 3QFY12 Petrochemicals Oil and gas

8.6

2,000 -

Source: Company, Angel Research

Source: Company, Angel Research

Other income growth mutes the decline in PAT

Depreciation decreased by 23.5% yoy to `2,570cr due to lower depletion charge in the oil and gas segment as a consequence of the transfer of a 30% stake in 21 blocks to BP. Other income rose by 131.7% yoy to `1,717cr, which resulted in net profit decreasing by only 13.6% yoy to `4,440cr, slightly below our estimate of `4,519cr.

Exhibit 7: PAT growth trend

6,000 5,000 4,000 32.3 27.8 28.1 16.7 14.1 15.8 40.0 30.0

(` cr)

3,000 2,000 1,000 1QFY11 2QFY11 3QFY11 4QFY11 1QFY12 2QFY12 3QFY12
PAT PAT growth (RHS)

10.0 0.0 (13.6) (10.0) (20.0)

Source: Company, Angel Research

January 23, 2011

(%)

20.0

(%)

Reliance Industries | 3QFY2012 Result Update

Segment-wise performance
Refining: During the quarter, crude processing stood at 17.3mn tonnes (compared to 16.1mn tonnes in 3QFY2011), with refinery reporting capacity utilization of 110%. Despite modest rise in crude throughput, higher petroleum product prices led to a 46.1% yoy increase in the refining segments revenue to `76,738cr. However, GRMs declined to US$6.8/bbl in 3QFY2012 (compared to US$9.0 in 3QFY2011 and US$9.1/bbl in 2QFY2012) on account of lower product cracks. Thus, the refining segments EBIT decreased by 30.8% yoy to `1,685cr.

Exhibit 8: RIL GRMs vs. Benchmark Singapore GRMs

16.0 14.0 12.0 10.0

(US $/bbl)

8.0 6.0 4.0 2.0 -

2QFY09

3QFY09

4QFY09

1QFY10

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

RIL GRMs

Singapore GRMs

Source: Company, Angel Research

Exhibit 9: Capacity utilization trend

120.0 17.0 100.0 80.0 15.0 13.0 11.0 9.0 7.0

60.0 40.0 20.0

3QFY09

4QFY09

1QFY10

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

Capacity Utilisation

Crude Processing (RHS)

Source: Company, Angel Research

Petrochemicals: The petrochemicals segments revenue grew by 23.8% yoy to `19,781cr due to higher prices and sales volumes. However, the segments EBIT margin declined by 429bp yoy to 10.9% and EBIT declined by 11.2% yoy to `2,157cr.

January 23, 2011

3QFY12

(mn tonnes)

(%)

3QFY12

Reliance Industries | 3QFY2012 Result Update

Oil and gas: The oil and gas segments revenue decreased by 32.2% yoy to `2,832cr due to lower production from KG-D6 block; however, this was partially offset by the increase in crude oil realization. Production from KG-D6 stood at 41mmscmd in 3QFY2012 compared to 45mmscmd in 2QFY2012. Consequently, the segments EBIT decreased by 14.0% yoy to `1,294cr during the quarter.

Investment arguments
Ramp-up in KG-D6 could re-rate the stock: RILs upstream segment still has significant upside in store, considering the huge untapped resources. RILs natural gas production stands at 41mmscmd, significantly below its potential of 80mmscmd from KG-D6 due to constraints over reservoir pressure. Nevertheless, we believe RIL can ramp up its production over the medium term with the help of BPs technical expertise. Also, RIL has recently concluded several three-year exploration phases on the prospective eastern coast and is expected to commence with the development phase soon. RIL expects to commence significant E&P activities from CY2014. 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, on the back of significant cash pile (`74,539cr as on December 31, 2011) and treasury stocks. Initiatives such as shale gas acquisitions, with in-place reserves of ~12TCF, could prove to be a potential trigger for the stock in the long term.

January 23, 2011

Reliance Industries | 3QFY2012 Result Update

Outlook and valuation

RILs refining and petrochemical segments profits declined during 3QFY2012. Going forward, although there are some concerns on the KG basin gas output, we believe RIL along with BP will optimize producing blocks in KG D6. Over the past five years, RIL has traded at an average one-year forward PE of 17.7x, while currently it is trading at a PE of 12.0x FY2012E and 11.2x FY2013E. On a P/B basis, the stock trades at 1.3x FY2012E and 1.2x FY2013E. Thus, we maintain our Buy view on RIL with an SOTP target price of `923.

Exhibit 10: SOTP valuation (FY2013E)

Business segment (` cr) Refining (EV/EBITDA 5.5x) Petrochemical (EV/EBITDA 5.5x) KG-D6 gas (DCF) KG-MA oil (DCF) NEC-25 (EV/boe 4.5x) D3 (EV/boe 4.5x) D9 (EV/boe 4.5x) Shale gas ventures (EV/boe 3.0x) Other prospective basins Retail Investment/Others Total EV Net debt Equity value (`)
Source: Company, Angel Research

`/share
290 195 142 45 54 60 35 60 30 15 36 962

(39) 923

Exhibit 11: Key assumptions

Particulars Exchange rate (`/US$) Refining capacity (MMT) Production (MMT) Capacity utilization Blended GRMs (US$/bbl) KG-D6 gas production (mmscmd) KG-D6 gas realizations (US$/mmbtu) Oil production (kbpd)
Source: Company, Angel Research

FY2012E 48.5 62.0 66.3 109% 8.2 45 4.2 18.0

FY2013E 49.0 62.0 67.0 108% 7.5 45 4.2 20.0

Exhibit 12: Angel EPS forecast vs. consensus

Angel forecast FY2012E FY2013E
Source: Company, Angel Research

Bloomberg consensus
66.4 70.9

Variation (%)
(3.2) (2.7)

64.3 69.0

January 23, 2011

Reliance Industries | 3QFY2012 Result Update

Exhibit 13: Recommendation summary

Company RIL ONGC GAIL CMP (`) 771 275 370 TP (`) 923 324 499 Reco. Mcap Upside (` cr) Buy 252,460 Buy 232,452 65,670 46,819 Buy (%) 20 18 35 P/E (x) FY12E 12.0 8.8 10.8 11.7 11.2 8.3 8.5 10.4 P/BV (x) 1.3 1.8 1.4 2.1 1.2 1.5 1.2 1.8 EV/EBITDA (x) FY12E 6.7 3.8 7.1 6.4 FY13E 6.1 3.3 5.1 5.6 RoE (%) 12.9 21.5 14.0 19.3 12.4 19.9 15.3 18.7 RoCE (%) FY13E 9.7 19.2 18.6 22.3 9.6 20.5 16.5 22.4 FY13E FY12E FY13E FY12E FY13E FY12E

Cairn India 345

Source: Angel Research

- Neutral

Exhibit 14: One-year forward P/E

1,600 1,400 1,200 1,000 800 600 400 200 0

Share price (`)

Oct-06

Oct-07

Oct-08

Oct-09

Oct-10

Oct-11 Dec-11

Jan-07

Jan-08

Jan-09

Jan-10

Jan-11

Apr-08

Apr-09

Apr-10

Apr-11

Apr-07

7x
Source: Company, Angel Research

10x

13x

16x

19x

Exhibit 15: Premium/Discount in RIL (P/E) vs. Sensex (P/E)

60 50 40 30

(%)

20 10 0

Dec-07

Dec-08

Dec-09

Aug-07

Aug-08

Aug-09

Aug-10

Dec-10

(10) (20) (30)

Prem/Disc to Sensex
Source: Company, Angel Research

Historic Avg Disc

January 23, 2011

Aug-11

Apr-07

Apr-08

Apr-09

Apr-10

Apr-11

Jan-12

Jul-06

Jul-07

Jul-08

Jul-09

Jul-10

Jul-11

Reliance Industries | 3QFY2012 Result Update

Profit and loss (Consolidated)

Y/E March (` cr) Total operating income % chg Total Expenditure Net Raw Materials Purchases of finished goods Personnel Other EBITDA % chg (% of Net Sales) Depreciation and amort. EBIT % chg (% of Net Sales) Interest & other Charges Other Income (% of PBT) Recurring PBT % chg Extraordinary Income/Exp PBT (reported) Tax (% of PBT) PAT (reported) Minority interest (MI) PAT after MI (reported) ADJ. PAT(core) % chg (% of Net Sales) Basic EPS (`) Fully Diluted EPS (`) % chg
FY2008 FY2009 FY2010 FY2011 FY2012E FY2013E

137,147 151,224 203,740 265,811 316,591 332,554 20.5 10.3 34.7 30.5 19.1 5.0 114,002 127,802 172,846 226,850 280,833 294,807 89,912 105,224 147,065 197,392 244,365 256,524 9,851 2,738 11,501 23,145 15.0 16.9 5,004 18,140 19.1 13.2 1,087 1,223 5.3 18,277 24.8 4,734 23,011 3,488 17.9 19,523 (1.9) 19,521 14,788 22.5 10.8 45.2 45.2 22.5 7,202 3,018 12,358 23,422 1.2 15.5 5,651 17,771 (2.0) 11.8 1,816 1,914 10.7 17,869 (2.2) 17,869 2,919 19.5 14,950 18.4 14,969 14,969 1.2 9.9 45.7 45.7 1.2 7,538 2,791 15,452 30,894 31.9 15.2 10,946 19,948 12.2 9.8 2,060 2,185 7.6 20,074 12.3 8,606 28,680 4,256 17.4 24,424 79.6 24,503 15,897 6.2 7.8 48.6 48.6 6.2 7,032 3,324 19,102 38,961 26.1 14.7 14,121 24,840 24.5 9.3 2,411 2,543 10.2 24,972 24.4 24,972 4,783 23.7 20,189 22.0 20,211 20,211 27.1 7.6 61.8 61.8 27.1 8,705 4,115 23,648 35,758 (8.2) 11.3 11,445 24,313 (2.1) 7.7 2,721 6,037 21.8 27,628 10.6 27,628 6,631 24.0 20,998 34.0 21,032 21,032 3.3 6.6 64.3 64.3 9.0 9,139 4,320 24,824 37,747 5.6 11.4 11,965 25,781 6.0 7.8 2,480 6,339 21.4 29,640 7.3 29,640 7,114 24.0 22,526 41.0 22,567 22,567 7.3 6.8 69.0 69.0 7.3

January 23, 2011

Reliance Industries | 3QFY2012 Result Update

Balance sheet (Consolidated)

Y/E March (` cr) SOURCES OF FUNDS Equity Share Capital Reserves& Surplus Shareholders Funds Total Loans Deferred Tax Liability Total Liabilities APPLICATION OF FUNDS Gross Block Less: Acc. Depreciation Net Block Capital Work-in-Progress Investments Current Assets Cash Loans & Advances Other Current liab.and prov. Net Current Assets Mis. Exp. not written off Total Assets 109,180 157,182 224,125 238,293 254,973 275,371 45,119 49,884 9,523 51,489 4,474 21,748 25,267 26,867 24,622 3 50,138 73,846 6,436 58,746 22,742 11,002 25,002 38,872 19,874 4 63,934 17,034 13,112 69,106 13,891 10,647 44,568 42,586 26,520 2 80,193 29,742 21,596 30,139 13,726 54,215 57,445 40,634 1 91,638 103,603 15,000 21,596 46,636 13,726 58,114 62,170 56,306 1 17,172 21,596 53,789 13,710 59,222 64,272 62,448 1 64,061 107,044 160,191 158,099 163,335 171,767 3,136 1,444 2,978 2,981 2,981 2,981 86,463 119,952 138,598 151,112 169,426 188,972 89,599 121,396 141,576 154,094 172,409 191,954 50,696 7,798 76,257 9,551 64,606 10,678 84,106 11,071 70,314 12,714 65,390 14,839 FY2008 FY2009 FY2010 FY2011 FY2012E FY2013E

148,093 207,203 216,860 250,073 256,239 272,985

98,080 118,476 126,720

148,093 207,203 216,860 250,073 256,239 272,985

January 23, 2011

10

Reliance Industries | 3QFY2012 Result Update

Cash flow statement (Consolidated)

Y/E March (` cr) Profit before tax Depreciation Change in Working Capital Less: Other income Direct taxes paid Cash Flow from Operations (Inc.)/ Dec. in Fixed Assets (Inc.)/ Dec. in Investments (Inc.)/ Dec. in loans and adv. Other income Cash Flow from Investing Issue of Equity Inc./(Dec.) in loans Dividend Paid (Incl. Tax) Others Cash Flow from Financing Inc./(Dec.) in Cash Opening Cash balances Closing Cash balances FY2008 23,011 6,785 (4,565) (5,827) (2,475) 16,929 4,335 (8,623) 503 1,682 17,652 (3,301) 16,033 2,537 1,937 4,474 FY2009 17,869 7,713 (5,771) (1,330) (1,926) 16,555 3,366 (102) 1,364 15,165 16,514 (1,908) FY2010 28,680 14,001 (1,786) (3,140) 31,815 2,645 (19) 2,160 513 (5,822) (2,219) 9,666 196 (2,431) (8,378) 16,248 13,891 30,139 FY2011 FY2012E FY2013E 24,055 16,820 (1,722) (4,243) 33,338 (8,102) 27,628 11,445 825 (3,316) (6,631) 29,952 6,037 (2,683) (1,078) 16,497 30,139 46,636 29,640 11,965 1,010 (3,859) (7,114) 31,643 16 6,339 (4,924) (2,981) (371) (8,276) 7,152 46,636 53,789

(5,939) (13,501)

(26,640) (27,732) (23,017) (33,604)

(1,938) (22,570)

(30,426) (23,103) (18,231) (32,040)

4,099 (16,215)

20,701 (13,793)

(4,954) (14,907) 24,817 (22,436) 18,268 4,474 22,742 (8,851) 22,742 13,891

14,950 (17,554)

January 23, 2011

11

Reliance Industries | 3QFY2012 Result Update

Key ratios
Y/E March Valuation Ratio (x) P/E (on FDEPS) P/CEPS P/BV Dividend yield (%) EV/Sales EV/EBITDA EV/Total Assets Per Share Data (`) EPS (Basic) EPS (fully diluted) Cash EPS DPS Book Value Returns (%) RoCE (Pre-tax) Angel RoIC (Pre-tax) RoE Turnover ratios (x) Asset Turnover (Gross Block) Inventory / Sales (days) Receivables (days) Payables (days) WC cycle (ex-cash) (days) Solvency ratios (x) Net debt to equity Net debt to EBITDA Int. Coverage (EBIT/Int.)
0.4 1.6 16.7 0.4 2.0 9.8 0.3 1.2 9.7 0.2 0.8 10.3 0.0 0.1 8.9 (0.1) (0.3) 10.4 1.3 71 23 29 46 1.1 54 15 52 44 1.1 59 8 57 83 1.1 83 19 89 111 1.3 83 19 89 94 1.3 83 19 89 83 13.9 20.8 20.4 10.0 17.4 14.3 9.4 13.5 14.3 10.6 13.2 13.8 9.6 12.6 12.9 9.7 13.0 12.4 59.6 59.6 71.9 5.5 301 44.6 44.6 69.7 6.4 407 74.9 74.9 99.8 7.0 475 58.9 58.9 115.7 8.5 517 64.3 64.3 108.9 9.0 578 69.0 69.0 115.8 10.0 644 12.9 10.7 2.6 0.7 1.9 11.1 1.7 17.3 11.1 1.9 0.8 1.8 11.4 1.3 10.3 7.7 1.6 0.9 1.4 9.0 1.3 13.1 6.7 1.5 1.1 1.0 6.9 1.1 12.0 7.1 1.3 1.2 0.8 6.7 0.9 11.2 6.7 1.2 1.3 0.7 6.1 0.8 FY2008 FY2009 FY2010 FY2011 FY2012E FY2013E

January 23, 2011

12

Reliance Industries | 3QFY2012 Result Update

Research Team Tel: 022 - 39357800

E-mail: research@angelbroking.com

Website: www.angelbroking.com

DISCLAIMER
This document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investment decision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and risks of such an investment. Angel Broking Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this document 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 and trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's fundamentals. The information in this document has been printed on the basis of publicly available information, internal data and other reliable sources 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 this document is for general guidance only. Angel Broking Limited or any of its affiliates/ group companies shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. Angel Broking Limited has not independently verified all the information contained within this document. Accordingly, we cannot testify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document. While Angel Broking Limited endeavours to update on a reasonable basis the information discussed in this material, there may be regulatory, 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 Limited and its affiliates may seek to provide or have engaged in providing corporate finance, investment banking or other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or in the past. Neither Angel Broking Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or 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 the latest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Limited and its affiliates may have investment positions in the stocks recommended in this report.

Disclosure of Interest Statement 1. Analyst ownership of the stock 2. Angel and its Group companies ownership of the stock 3. Angel and its Group companies' Directors ownership of the stock 4. Broking relationship with company covered

RIL No No Yes No

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

Ratings (Returns):

Buy (> 15%) Reduce (-5% to 15%)

Accumulate (5% to 15%) Sell (< -15%)

Neutral (-5 to 5%)

January 23, 2011

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