RELIANCE INDUSTRIES LIMITED
RESULTS FOR Q1 FY 2012-13
RELIANCE INDUSTRIES LIMITED
has declared results for the first
quarter ending June, 2012- which are analyzed below.
HIGHEST EVER QUARTERLY REVENUE OF Rs.94,926 CR
HIGHEST EVER EXPORTS
FOR A QUARTER OF Rs.55,261 CR ; Exports increased by 7.7 % as compared to Q4
FY12 and 6.8% as compared to Q1 FY12.
Gross Refining Margin
at $ 7.6 / bbl for Q1 FY 13.
PBDIT OF
Rs.8,651 CR (Q1 FY13);Rs. 8,859Cr(Q4FY12); Rs.11,005 Cr(Q1FY12); 2.3% (%Change wrt
4Q FY12); 21.4% (% Change wrt 1Q FY12);
TURNOVER :Rs.94,926
Cr (Q1 FY13);Rs.87,833Cr(Q4FY12); Rs.83,689 Cr(Q1FY12); Turnover increased by
8.1% to Rs.94,926 Cr ($ 17.1 billion) as compared to Q4 FY12 and 13.4%
as compared to Q1 FY12.
DETAILS
Net Sales
from Operations stands at Rs.91875 Cr; up by 7.86% from Q4 FY 12 (Rs.85182 Cr); and up by 13.4%
from Q1 FY 12 (Rs.81018 Cr); and up proportionately ( Q1 FY 13 x 4 vs FY 12 Consolidated)
by 2.51% from the total of FY 12 of Rs.358501 Cr.
Raw Materials stands
at Rs.79335 Cr; up by 10.93% from Q4 FY
12 (Rs.71519 Cr); and up by 23.11% from Q4 FY 12 (Rs.64443 Cr); and up
proportionately ( Q1 FY 13 x 4 vs FY 12 Cons) by 8.75% from the total of FY 12 of Rs.291800 Cr.
Other Expenditure
stands at Rs.5770 Cr; up by 16.94% from
Q4 FY 12 (Rs.4934 Cr); and up by 34.15% from Q4 FY 12 (Rs.4301 Cr); and up
proportionately by 7.16% from the total
of FY 12 of Rs.21538 Cr.
Total Expenditure stands at Rs.87562 Cr; up by 7.73% from Q4 FY 12 (Rs.81278 Cr); and up by 17.87%
from Q4 FY 12 (Rs.74287 Cr); and up proportionately by 4.21% from the
consolidated total of FY 12 of Rs.336085Cr.
Profit from Operations
stands at Rs.4313 Cr; up by 10.48%
from Q4 FY 12 (Rs.3904 Cr); and down by -35.92% from Q4 FY 12 (Rs.6731 Cr); and
down proportionately by -23.04% from the total of FY 12 of Rs.22416 Cr.
Other Income
stands at Rs.1904 Cr ; down by -17.04% from Q4 FY 12 (Rs.2295 Cr); and up by 76.62%
from Q4 FY 12 (Rs.1078Cr); and up proportionately by 24.36% from the total of FY
12 of Rs.6124Cr.
Interest stands at Rs.784 Cr – up by 2.08% from Q4 FY 12 (Rs.768 Cr); and up by 43.85%
from Q4 FY 12 (Rs.545 Cr); and up proportionately by 8.4% from the total of FY 12 of Rs.2893Cr.
Profit before tax stands at Rs.5433 Cr ; up by 0.04% from Q4 FY 12 (Rs. 5432 Cr); and down by -25.21% from Q4 FY
12 (Rs.7264 Cr); and down
proportionately by -14.23% from the total
of FY 12 of Rs.25338 Cr.
Tax Expense stands at Rs.960 Cr; down by -19.67% from
Q4 FY 12 (Rs.1195 Cr); and down by -40.11% from Q4 FY 12 (Rs.1603 Cr); and down
proportionately by -32.53% from the total of
FY 12 of Rs.5691Cr.
Cash Profit decreased by 3.1%
to Rs.6,785 Cr as compared to Q4 FY12
and 24.7% as compared to Q1 FY12.
Net Profit after tax stands at Rs.4473 Cr ; up by 5.59% from Q4 FY 12 (Rs.4236 Cr); and down
by -20.99%
from Q4 FY 12 (Rs.5661 Cr); and down proportionately ( Q1 FY 13 x 4 vs FY 12
Cons) by -8.93% from the total NPT for
FY 12 of Rs.19647Cr ; and also down proportionately by -9.29% from the
Consolidated NPT of FY 2012 of Rs.19724 Cr.
Face Value
stands at Rs.10; Paid-up Equity stands at Rs.3242 Cr.
Reserves
as at the end of FY 12 vstands at Rs.162726
Cr.
Basic EPS (in Rs.)
stands at Rs.13.7 in Q1 FY 13; Rs.12.9 in Q4 FY 12; Rs.17.3 in Q1 FY 12; and
Rs.66.2 in FY 12 (Cons).
Public Shareholding
(%)stands at 54.85%.
CORPORATE
HIGHLIGHTS
RIL has selected Irving, Texas
based Fluor Corporation (NYSE: FLR) to perform project management services for
its projects being executed at its world scale Jamnagar refining and
petrochemical complex on the west coast of India. The investment in the expansion
of energy and petrochemicals projects
represents one of the largest such investments
globally. The proposed coke gasification
facility is also among the largest such projects ever built.
RIL has announced that it has
selected Phillips66’s E-Gas™ technology for its planned gasification plants at
Jamnagar. The planned gasification plants at Jamnagar will be among the largest
in the world and will process petroleum coke and coal into synthesis gas
utilizing the EGas™ technology. The synthesis gas will be used as feedstock for
a new chemical complex and will fuel the refinery's existing gas turbine power
generation units. Phillips 66 will license Gas™
technology to RIL and provide process engineering design and technical
support gasification technology relating to the process area.
Government of India, by its letter
of 02 May 2012 has communicated that it
proposes to disallow certain costs which the PSC relating to Block
KG-DWN-98/3 entitles RIL to recover. RIL continues to maintain that a
Contractor is entitled to recover all of its costs under the terms of the PSC
and there are no provisions that entitle the Government to disallow the
recovery of any Contract Cost as defined in the PSC. The company has already
initiated arbitration on the above issue.
On July 6, 2012 RIL selected
Technip as a technology supplier and engineering contractor to implement its
Refinery Off-Gas Cracker (ROGC) project. This is part of the expansion project being
executed at RIL’s world-scale Jamnagar refining and petrochemical complex in
Gujarat, on the West Coast of India. The ROGC plant will be amongst the largest
ethylene crackers in the world and will be using refinery off-gas as feedstock.
The products from the plant will be utilized for the new downstream
petrochemical plants being built at Jamnagar.
Reliance Exploration and
Production DMCC, a wholly owned subsidiary of Reliance has completed the
transaction for divestment of its 80% working interest and operatorship in the production
sharing contracts (PSCs) for Rovi and Sarta Blocks in the Kurdistan Region to
the subsidiaries of Chevron Corporation. This is in line with its portfolio
rationalization strategy of international assets.
RIL has signed a US$ 2 billion
equivalent loan with nine banks covered by Euler Hermes Deutschland AG. (“Euler
Hermes”) on 07 May 2012 at Berlin, Germany. The loan will be primarily used to finance goods and services
procured from German suppliers as part of RIL's petrochemicals expansion
projects at Jamnagar, Hazira, Silvassa and Dahej in India.
REVIEW AND ANALYSIS
RIL achieved a turnover for Q1 FY 13
of Rs.94,926 Cr, an increase of 8.1% over the trailing quarter. Higher prices
accounted for 4.1% growth in revenue while higher volumes accounted for the
balance 4.0% growth.
Exports were higher by 7.7% at Rs.55,261 Cr as against Rs.51,290
Cr in the trailing quarter. Higher exports were mainly on account of increase
in volumes of refining products by 8.8 % over the trailing quarter. However, on
a Y-o-Y basis, higher prices resulted in turnover increasing by 13.4 % from
Rs.83,689 Cr to Rs.94,926 Cr.
Exports were higher by 6.8% at Rs.55,261 Cr as against Rs.51,737 Cr in the corresponding period of
the previous year.
On a sequential quarter basis, raw
materials consumption increased by 10.9% to Rs.79,335 Cr on account of
incremental crude processed and higher
exchange rate partially offset by lower average crude prices. On a Y-o-Y basis,
raw material consumption increased by 23.1% from Rs.64,443 Cr to Rs.79,335 Cr
mainly on account of higher exchange rate.
Employee costs for the quarter were Rs.847
Cr. Employee costs were higher by 41.9 % over the trailing quarter on account
of one-time performance linked payments for the previous year’s performance.
However, employee costs were lower by 3.5% from Rs.878 Cr to Rs.847 Cr as
against the corresponding period of the previous year.
Other expenditure increased by 17.0%
from Rs.4,933 Cr to Rs. 5,770 Cr over
the trailing quarter and 34.2 % over the corresponding period of the previous
year. The increase is primarily due to higher power & fuel expenses and
higher exchange differences.
Operating profit, increased by 2.8%
from Rs.6,564 Cr to Rs.6,747 Cr over the trailing quarter. Net operating margin
was lower at 7.1% as compared to 7.5% in the trailing
quarter basis.
On a Q-o-Q basis, other income was
lower at Rs.1,904 Cr as against Rs.2,295 Cr primarily due to gain on maturity
of mutual funds booked during the trailing quarter. Other income has increased by 76.6% from Rs.1,078 Cr to Rs.
1,904 Cr on a Y-o-Y basis on account of larger cash balance.
Depreciation (including depletion
and amortization) was lower by
8.5% at Rs.2,434 Cr against Rs.2,659 Cr over the trailing quarter. This
was primarily due to
lower depletion charges in oil & gas and lower depreciation on
petrochemical assets due to WDV method.
Interest cost was at Rs.784 Cr as
against Rs. 768 Cr in the trailing quarter. Gross interest cost was Rs.822 Cr as
against Rs.811 Cr in the trailing
quarter. Interest capitalized was lower at
Rs.38 Cr as against Rs.43 Cr for
the trailing quarter. Exchange difference
included in interest for the quarter were Rs.210 Cr as against Rs.239 Cr for
the trailing quarter.
Interest cost was higher by 43.9%
from Rs.545 Cr to Rs.784 Cr compared to the corresponding period of the
previous year mainly due to higher foreign currency loan denomination and sharp
decline in the rupee exchange rate. Interest capitalized was lower at Rs.38 Cr as against Rs.135 Cr for the corresponding previous quarter. Exchange difference included in
interest for the quarter were Rs.210 Cr as against Rs.125 Cr for the
corresponding previous quarter.
During the quarter, deferred tax
reversal was Rs.122 Cr as against deferred tax expense of Rs.110 Cr in the
trailing quarter. The difference is due to estimated lower tax depreciation as
compared to book depreciation. Deferred
tax was Rs.150 Cr in the corresponding
period of the previous year.
Profit after tax was higher at Rs.4,473 Cr as against Rs.4,236 Cr in the trailing quarter and lower by 21% from Rs.5,661
Cr to Rs.4,473 Cr as compared to the corresponding period of the previous year.
Basic EPS for Q1 FY 13was Rs.13.7 against Rs.12.9 in the trailing
quarter. Basic EPS for Q1 FY 12 was Rs.17.3.
Outstanding debt as on 30th June
2012 was Rs.73,213 Cr compared to Rs.68,259 Cr as on 31st March 2012. The
increase in debt in rupee terms is mainly on account of change in exchange
rates. Net gearing as on 30 June 2012 was
1.3% as compared to nil as on 31
March 2012.
RIL had cash and cash equivalents of
Rs.70,732 Cr. These are primarily invested in fixed deposits, certificate of
deposits with banks, mutual funds and Government securities / bonds.
Cash outflow on account of capital
expenditure for the year amounted
to Rs.2,398 Cr.The increase in capital
expenditure is primarily on account of
capital expenditure incurred for the Petrochemical Projects at Dahej and
Silvassa. The net capital expenditure for Q1 FY 13was Rs.7,656 Cr including Rs.5,218
Cr capitalized on account of exchange difference on loans.
RIL retained its domestic credit
ratings of AAA from CRISIL and FITCH and has investment grade ratings for its
international debt from Moody’s and S&P as Baa2 and BBB respectively.
DOMESTIC
OPERATIONS : KG-D6
The KG-D6 field produced 0.9 million
barrels of crude oil, and 104.40 BCF of natural gas, which was lower by 36.7% and 33.1%
respectively over the previous period. The reduction in production was due to
reservoir complexity and natural decline. Production of gas condensate was 0.1
million barrels, reduction of 30.6% over the previous period.
As compared to Q4 FY12, the decrease
in oil production by 17 %, in gas production by 9% and in condensate production
by 1% was due to a reduction is
reservoir pressure associated with production from the field.
Production from KG-D6 has resulted
in cumulative sales of 1,869 BCF (52.92 BCM) since start of production while
sales for 1Q FY 12-13 was about 103.35 BCF (2.93 BCM).
Significant efforts towards
augmenting production from KG D6 have been undertaken during the quarter.
For KG-D6, RIL is planning to submit
Revised Field Development Plan (RFDP) for D1-D3 which is aimed at maximizing
gas recovery from the existing fields. It also plans to further pursue approval
of
RFDP of D 26 (MA) submitted in the
earlier quarter. Further, to expedite the development projects of other
discoveries, RIL is preparing development plan(s) based on an integrated
concept which is planned for submission in 3Q FY13.
RIL has also commenced pre-development activities in the D6 block which includes Engineering Surveys i.e.
Geophysical Surveys & Geotechnical Investigations and Conceptual
Engineering and FEED.
* *
* E N
D * * *
Hello Sir
ReplyDeleteThank you very much for the very helpful detailed results update. I appreciate your hard work for the post