RELIANCE INDUSTRIES LIMITED
Q3 RESULTS FOR Q/E DEC 2010
Highlights of Nine Months Performance
Turnover increased by 30.9% to ` 183,368 crore (US$ 41.0 billion)
Exports increased by 29.2% to ` 100,995 crore (US$ 22.6 billion)
PBDIT increased by 30.6% and achieved a record level of ` 30,418 crore (US$ 6.8 billion)
Profit Before Tax increased by 26.2% to ` 18,565 crore (US$ 4.2 billion)
Cash Profit increased by 31.8% to ` 25,731 crore (US$ 5.8 billion)
Net Profit increased by 29.4% to ` 14,910 crore (US$ 3.3 billion)
Gross Refining Margin at US$ 9.0 / bbl for the quarter and US$ 8.1 / bbl for the nine months ended 31st December 2010
Commenting on the results, Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries Limited said:
“Reliance had another record quarter as both refining and petrochemical margins continued to improve and for certain products recorded historic levels. Robust demand growth in home markets and highly competitive assets enabled Reliance to have industry leading operating rates and margins.”
FINANCIAL PERFORMANCE REVIEW AND ANALYSIS
Turnover achieved for the nine months ended 31st December 2010 was ` 183,368 crore (US$ 41.0 billion), an increase of 30.9% over the corresponding period of the previous year.
Increase in volume accounted for 15.3% growth in revenue and higher prices accounted for 15.6% growth in revenue.
Exports were higher by 29.2% at ` 100,995 crore (US$ 22.6 billion) as against ` 78,182 crore (US$ 16.8 billion) in the corresponding period of the previous year.
Consumption of raw materials increased by 28.7% to ` 134,975 crore (US$ 30.2 billion) mainly on account of higher crude oil prices as well as higher volume of crude oil processed in the SEZ refinery. Purchases for traded goods decreased from ` 2,389 crore to ` 1,223 crore.
Employee costs were at ` 1,938 crore (US$ 434 million) for the nine months as against ` 1,729 crore (US$ 372 million) reflecting increased benefits to employees.
Other expenditure increased by 33.9% from ` 8,661 crore (US$ 1.9 billion) to ` 11,594 crore (US$ 2.6 billion) due to higher selling expenses on additional volumes, royalty on higher oil & gas production, higher shutdown expenses, exchange difference and lower pre-operatives.
Operating profit before other income and depreciation increased by 31.9% from ` 21,445 crore (US$ 4.6 billion) to ` 28,283 crore (US$ 6.3 billion). Net operating margin was marginally higher at 15.4% as compared to 15.3% in the corresponding period of the previous year.
Other income was higher by 15.7% at ` 2,135 crore (US$ 478 million) as against ` 1,845 crore (US$ 397 million) as compared to the corresponding period of the previous year primarily due to higher average cash balances.
Depreciation (including Depletion and Amortization) was higher by 43.9% at ` 10,221 crore (US$ 2.3 billion) against ` 7,105 crore (US$ 1.5 billion) in the corresponding period of the previous year primarily on account of higher depletion charge in Oil & Gas and increased depreciation in the Refining business.
Interest cost was higher at ` 1,632 crore (US$ 365 million) as against ` 1,472 crore (US$ 316 million) in the corresponding period of the previous year principally due to lower capitalization of interest charges. Gross interest cost was lower at ` 1,986 crore (US$ 444 million) as against ` 2,332 crore (US$ 501 million) for the corresponding period of the previous year on account of lower interest rates. Interest capitalized was lower at ` 354 crore (US$ 79 million) as against ` 860 crore (US$ 185 million).
Profit after tax was ` 14,910 crore (US$ 3.3 billion) as against ` 11,526 crore (US$ 2.5 billion) for the corresponding period of the previous year.
Basic earnings per share (EPS) post allotment of Bonus Shares for the nine months ended 31st December 2010 was ` 45.6 (US$ 1.0) against ` 35.3 (US$ 0.8) for the corresponding period of the previous year.
The 3rd qtr results are as below :
As can be seen, Net sales at Rs.59789 cr is higher by 5.6% from corresponding qtr of last year.
Net profit at Rs.5136 cr is higher by 28.14 % from corresponding qtr of last year.
Basic EPS is Rs. 15.7 against Rs.12.3 of corresponding qtr of last year.
This was the best quarter ever for petrochemicals segment with respect to production, revenue and EBIT. Petrochemicals segment EBIT was at ` 2,429 crore, higher by about 9% over previous quarterly high of ` 2,222 crore in 4Q FY 0910. Performance of the segment reflects the strong domestic demand in most of the products and lower than expected impact on margins due to commissioning of new capacities, based on advantaged feed stock, in Middle East.
During the quarter, domestic demand for polyester products was higher by 10% as compared to corresponding period of the previous year. On the back of strong domestic demand growth, lack of adequate new capacities globally and historically high cotton prices, the polyester chain witnessed robust margin environment. POY / PSF deltas during the quarter were significantly above their 5 year averages. Similarly, deltas for fibre intermediates improved strongly on polyester strength during the last quarter and were also, above their 5 year averages.
| RIL | 31-Dec-10 | 30-Sep-10 | 30-Jun-10 | 31-Mar-10 | 31-Dec-09 |
| Net Sales | 5978900 | 5747900 | 5822800 | 5757000 | 5685600 |
| NET SALES & % INCREASE | 59789 | 4.02 | 2.68 | 3.85 | 5.16 |
| Depreciation | 335900 | 337700 | 348500 | 339200 | 279500 |
| Other Expenditure | 414200 | 386900 | 358300 | 390200 | 323500 |
| Total Expenditure | 5360300 | 5146000 | 5237100 | 5182600 | 5180700 |
| Profit from Operations | 618600 | 601900 | 585700 | 574400 | 504900 |
| Other Income5 | 74100 | 67200 | 72200 | 61500 | 50800 |
| Interest6 | 54900 | 54200 | 54100 | 52500 | 55000 |
| Tax expense | 124200 | 122600 | 118700 | 112400 | 99900 |
| Net Profit | 513600 | 492300 | 485100 | 471000 | 400800 |
| NPT % INCREASE | 5136 | 4.33 | 5.88 | 9.04 | 28.14 |
| Dividend (%) | - | - | - | 70 | - |
| Face Value (In Rs | 10 | 10 | 10 | 10 | 10 |
| Paid Up Equity | 327300 | 327200 | 327100 | 327000 | 327000 |
| Reserves | - | - | - | 12509700 | - |
| Basic EPS | 15.7 | 15.1 | 14.8 | 14.4 | 12.3 |
| Public Shareholding (%) | 55.27 | 55.26 | 55.24 | 55.24 | 53.43 |
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