CMP Rs764, Target Rs777, Upside 1.5%
± Net sales for Q2 FY11 rises 30.8% yoy driven by higher average realizations and government subsidy share of Rs29.4bn
± Upstream companies shared under recovery burden worth Rs8.2bn in Q2 FY11 v/s Rs8.8bn in 2 FY10
± Throughput was higher by 12% yoy to 5.6mn tons and market sales were higher by 1.5% to 6.6mn tons
± Uncertainty over subsidy sharing pattern to continue, keeping the impact of recent reforms limited
