No positive surprises in RIL results

Reliance Industries refused to surprise anyone with its results for the first quarter of the financial year 2011-12. If anything, there is the small positive of RIL's refining margin, the profit that the company can earn by refining crude, at $10.3 per barrel, which is higher than the Singapore GRMs of $8.80 per barrel.

This is not much of a surprise either as Reliance has always been bettering the Singapore GRM. The results also indicate that RIL's cash generating engine is intact, with quarter profits at $1.3 billion.
 
There are a host of negatives that has come out against the company. The latest being the report by Veritas, which took us back to the decision on the demerger that divided the Reliance empire between the brothers.

Reliance Industries has not tried to spring up any surprises within the results package to offset the bad press it has been getting. In fact it is trying to wait and watch and surprise with better results in the future.
 
For that to happen, the RIL-BP deal must work out well. As the results show, its oil and gas operations have shown significant dips compared to first quarter of the last year. DK Aggarwal- Chairman and Managing Director, Sanlam Investments & Advisors (India), said: "I feel that the recent BP deal clearance can be positive news for the company along with technical expertise of BP, as it brings $7.2 billion of money to the company's kitty. However, the technical issues in KG-D6 basin till these are resolved can still be a major challenge for the stock going forward."