RELIANCE INDUSTRIES LIMITED
Q1 FY2010 RESULTS
Reliance Industries has released its results for the first quarter of FY2011. The High lights of the performance are as below :
HIGH LIGHTS
· HIGHEST EVER QUARTERLY REVENUE, PBDIT AND NET PROFIT
· NET PROFIT US$ 1.0 BILLION FOR THE QUARTER
· PBDIT OF US$ 2.2 BILLION FOR THE QUARTER
· KG D6 CUMULATIVE GAS PRODUCTION OF NEARLY 20 BILLION CUBIC METERS
OTHER PERFORMANCE HIGH LIGHTS
• Exports increased by 103.5% to Rs.32,849 crore (US$ 7.1 billion)
• PBDIT increased by 41.9% and achieved a record level of Rs.10,064 crore (US$ 2.2 billion)
• Profit Before Tax increased by 27.0% to Rs.6,038 crore (US$ 1.3 billion)
• Cash Profit increased by 46.1% to Rs.8,536 crore (US$ 1.8 billion)
• Net Profit increased by 32.3% to Rs.4,851 crore (US$ 1.0 billion)
• Gross Refining Margin at US$ 7.3 / bbl for the quarter ended 30th June 2010
FINANCIAL PERFORMANCE
REVIEW AND ANALYSIS
Turnover achieved for the quarter ended 30th June 2010 was Rs.61,007 crore (US$ 13.1 billion), an increase of 88.1% over the corresponding period of the previous year. Increase in volume accounted for 48.4% growth in revenue and higher prices accounted for 39.7% growth in revenue.
Exports were higher by 103.5% at Rs.32,849 crore (US$ 7.1 billion) as against Rs.16,145 crore in the corresponding period of the previous year.
Consumption of raw materials increased by 85.4% to Rs.45,818 crore (US$ 10.0 billion) mainly on account of higher crude oil processed in the SEZ refinery. Volumes accounted for 34.9% increase and higher prices accounted for 50.5% increase in the value of consumptions of raw materials, primarily crude.
Purchases for traded goods increased from Rs.397 crore to Rs.474 crore.
Operating profit before other income and depreciation increased by 46.3% from Rs.6,384 crore to Rs.9,342 crore (US$ 2.0 billion).
Net operating margin was lower at 15.3% as compared to 19.7% in the corresponding period of the previous year due to base effect and softer margin environment in petrochemicals partially offset by incremental share of the higher margin Oil & Gas business.
Outstanding debt as on 30th June 2010 was Rs.73,422 crore (US$ 15.8 billion) compared to Rs.62,495 crore as on 31st March 2010. Net gearing as on 30th June 2010 was 24.2% as against 22.0% as on 31st March 2010.
RIL has cash and cash equivalents of Rs.26,407 crore (US$ 5.7 billion). These are in fixed deposits, certificate of deposits with banks, mutual funds and Government securities / bonds.
RIL’s net debt is equivalent to 1.2 times annualized PBDIT for the quarter ended 30th June 2010.
DOMESTIC OPERATIONS
KG D6
Current production of about 60 MMSCMD is taken from 16 wells of D1/ D3 and 5 wells of D26 fields. During the quarter, D26 field was shut down for 2 days, in May’10, due to cyclone. The production of gas condensate from D26 fields commenced from 21st April 2010.
During the quarter ended 30th June 2010, production from KG D6 was 304,349 tonnes of crude oil, and 5,376 MMSCM of natural gas, a growth of 207% and 210% respectively as the oil and gas production was under ramp up during the corresponding period of the previous year. During the quarter, production of gas condensate stood at 12,841 tonnes.
In line with the Government of India’s gas utilization policy, GSPAs have been executed, with 55 customers in the fertilizers, power, city gas distribution, steel, LPG, refinery and petrochemical sectors. During the quarter, GSPAs with two refineries and one power plant were signed.
Panna-Mukta and Tapti (PMT)
Production from Panna-Mukta was 502 MMSCM of natural gas, a growth of 7% and 403,394 tonnes of crude oil, reduction of 11% as compared to the corresponding period of the previous year.
Decrease in oil production at Panna-Mukta was due to six days shutdown in Panna in April 2010 while increase in natural gas production was due to incremental production from infill and PK wells.
Production from Tapti was 785 MMSCM of natural gas and 42,277 tonnes of condensate, a decrease of 6% and 18% respectively over the corresponding period of the previous year. The decrease in production was due to natural reserves decline.
Other Domestic Blocks
During the quarter, following four discoveries were notified to Directorate General of Hydrocarbons (DGH) –
• Dhirubhai-47 in Well AF1 in CB10 block
· Dhirubhai-48 in Well AJ1 in CB10 block
• Dhirubhai-49 in Well AT1 in CB10 block
• Dhirubhai-50 in Well AN1 in CB10 block
Currently, three deepwater rigs are under operation for Exploration and one additional rig is expected in second half of the financial year 2010-11.
“We had yet another record quarter, due to high operating rates and improving margins across all our businesses. Reliance embarked on two major initiatives to create incremental value. We entered into joint ventures in shale gas to internationalise and diversify our upstream portfolio. Reliance has also committed itself to participate in the high growth and exciting area of broadband wireless. Both initiatives are in line with the strategy to identify and invest in new, value-creating businesses,” said Chairman and Managing Director Mukesh Ambani.
COMPARISON & REVIEW
Beyond the above High Lights released mostly by the company – a comparison of Q1 FY2011 with each of the preceding 4 quarters and proportionately (Q1 FY2011 x 4) with the FY2010(Non consolidated) can be seen below.
It can be seen that Net sales has been registering improvement in each quarter. The Net sales of Q1 FY2011 has grown by 1.1% compared to Q4 FY10; 2.4% compared to Q3 FY10; 24.3% compared to Q2 FY10; and a huge 81.7% compared to Q1 FY10; The rate of growth has slowed down in Q3 and Q4 of FY2010 while it was very fast in Q1 and Q1 of FY2010. Compared to the full year of FY2010, the proportionate growth is 21% which is quite healthy.
The growth in total expenditure also adhered to the same pattern as above.
Profit from Operations before Other Income, Interest & Exceptional Items is 2 % more than Q4 FY10; 16% more than Q3 FY10; 22.4% more than Q2 FY10; 36.4% more than Q1 FY10; and 16.7% proportionately more than FY2010.
Net Profit at Rs.4851 Cr – is higher by 3% from Q4 FY10; 21% from Q3 FY10; 25.9% from Q2 FY10; 33.4% from Q1 FY10; and proportionately by 19.5% from FY2010.
Basic EPS at Rs.14.8 is higher by 2.8% from Q4 FY2010 and 20.3% higher from Q3 FY2010 and 19.1% higher proportionately compared to FY2010. Other quarters had pre-Bonus EPS which are not comparable.
From the above figures and other info released by the company – it is clear that the company is making EXCELLENT PROGRESS in its expansion of production, sales and profitability. It is also clear that RIL is looking at and seizing each profitable opportunity vey fast and its PROJECT EXECUTION so far has been commendable. It is to be hoped that the SHAL GAS ROUTE and the BROAD BAND route will prove equally big and profitable.
STAND ALONE FIGURES OF RIL FOR Q1 FY2011
AND % INCREASE OR DECREASE in Q1 FY2011 COMPARED TO
Q4,Q3,Q2 and Q1 of FY2010 &
Full FY2010 Figures
Q1FY10 | MAR | DEC | SEP | JUN | 2010 | |
Jun-10 | 310% | 1209% | 909% | 606% | FY10% | |
Net Sales | 5822800 | 1.1 | 2.4 | 24.3 | 81.7 | 21 |
SIT&WIP | -160600 | -817 | -189.8 | -42.7 | -27.1 | 62.7 |
Raw Materials | 4581800 | 6.4 | 7.5 | 22.2 | 162 | 23.9 |
Traded Goods | 47400 | -21.9 | -40.3 | -60.4 | -94.2 | -36.7 |
Employees Cost | 61700 | -0.6 | 7.1 | 3.5 | 13 | 5 |
Depreciation | 348500 | 2.7 | 24.7 | 43.3 | 114 | 32.8 |
Other Expdr | 358300 | -8.2 | 10.8 | 14.3 | 72.3 | 14.1 |
Total Expdr | 5237100 | 1.1 | 1.1 | 24.5 | 88.6 | 21.5 |
Profit .Operations | 585700 | 2 | 16 | 22.4 | 36.4 | 16.7 |
Other Income5 | 72200 | 17.4 | 42.1 | 15 | 2.8 | 17.4 |
P B I&EI | 657900 | 3.5 | 18.4 | 21.5 | 31.7 | 16.7 |
Interest6 | 54100 | 3 | -1.6 | 17.1 | 56.8 | 8.4 |
P A I B B EI | 603800 | 3.5 | 20.6 | 22 | 29.8 | 17.5 |
P B T | 603800 | 3.5 | 20.6 | 22 | 29.8 | 17.5 |
Tax expense | 118700 | 5.6 | 18.8 | 8 | 17.1 | 10.1 |
P A T | 485100 | 3 | 21 | 25.9 | 33.4 | 19.5 |
Net Profit | 485100 | 3 | 21 | 25.9 | 33.4 | 19.5 |
Dividend (%) | - | |||||
Face Value.Rs | 10 | 0 | 0 | 0 | 0 | |
Paid Up Equity | 327100 | 0 | 0 | 99.1 | 108 | |
Reserves | - | |||||
Basic EPS A EI | 14.8 | 2.8 | 20.3 | -36.8 | -35.9 | 19.1 |
Diluted EPS A EI | 14.8 | 2.8 | 20.3 | -36.8 | -35.9 | 19.1 |
Basic EPS B EI | 14.8 | 2.8 | 20.3 | -36.8 | -35.9 | 19.1 |
Diluted EPS B EI | 14.8 | 2.8 | 20.3 | -36.8 | -35.9 | 19.1 |
Public holding (%) | 55.24 | 0 | 3.4 | 2.9 | 15.5 |
ANNOUNCEMENTS OF RIL
TO THE NSE
27-07-2010 Reliance Industries Limited has informed the Exchange regarding a Press Release dated July 27, 2010, titled "Highest ever Quarterly Revenue, PBDIT and NET PROFIT, NET PROFIT US$ 1.0 Billion for the Quarter, PBDIT of US$ 2.2 Billion for the Quarter, KG D6 Cumulative Gas Production of nearly 20 Billion Cubic Meters". Click Here
27-07-2010 Reliance Industries Limited has informed the Exchange regarding the standalone Results for the quarter ended on 30-JUN-2010 as follows: Net Sales of Rs. 5822800 lacs for quarter ending on 30-JUN-2010 against Rs. 3205500 lacs for the quarter ending on 30-JUN-2009. Net Profit / (Loss) of Rs. 485100 lacs for the quarter ending on 30-JUN-2010 against Rs. 363600 lacs for the quarter ending on 30-JUN-2009. -
28-06-2010 Reliance Industries Limited has informed the Exchange regarding a Press Release dated June 28, 2010, titled "RIL makes Seventh oil discovery in block CB-ONN-2003/1".
OTHER NEWS ON RIL
· RIL holds 95% of the equity in Infotel Broadband Services Private Limited, which has emerged as a successful bidder in all the 22 circles of the auction for Broadband Wireless Access (BWA) Spectrum conducted by the DoT.
• RIL through its subsidiary, Reliance Marcellus LLC, has entered into a joint venture with United States based Atlas Energy, Inc., of Pittsburgh, Pennsylvania under which Reliance acquired 40% interest in Atlas's core Marcellus Shale acreage position.
• RIL through its subsidiary, Reliance Eagleford Upstream Holding LP, has entered into a joint venture with United States based Pioneer Natural Resources Company, of Irving, Texas under which Reliance acquired 45% interest in Pioneer's core Eagle Ford Shale acreage position.
• RIL and SIBUR, Russia’s leading petrochemical company, signed a Memorandum of Understanding (MoU) to set up a joint venture (JV) in India. This new joint venture will produce butyl rubber at Reliance’s integrated petrochemical site in Jamnagar, India. According to the MoU, SIBUR will provide proprietary technology for butyl rubber polymerization and its finishing, while RIL will supply monomers and provide the JV with world class infrastructure and utilities.
• Reliance through its subsidiary, has invested in Deccan 360, India’s new delivery and distribution network, an initiative which will provide a remarkable boost in transforming the logistics spectrum in India. The investment will help Deccan 360 to increase air and surface network coverage across the country.
NOTE : As always, readers are requested to give their comments, suggestions, and SPECIALLY CORRECTIONS, IF ANY – which will be gratefully accepted.
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very good. please keep it up
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